Credit cards – the future of consumer lending
Posted on Sep 18, 2000 08:15:27 AM
Credit cards for today is one of the fastest growing segments of retail lending. The special distribution of credit received by banks after the introduction of many so-called grace period interest payments (grace period). Advantages of a credit card with a consumer perspective are clear: to raise funds not required additional paperwork and pay card can be used at any retail outlet, equipped with the appropriate terminal. In addition, the client has the opportunity to choose a payment schedule on the loan.
In turn, banks are interested in implementing the cards at least as credit cards allow you to build lasting relationships with consumers (due to the fact that the client, for example, can some times use a credit card to make purchases). Probably some time credit will be seriously oust Express loans.
But at the moment of course, the conditions of the loan to be signed at the bank, usually more attractive to the customer: lower the interest rate is less than the size of commissions. According to Deputy Director of Retail Development Department PSB Lydia Herzen, this is connected the system, that “in express loans vmagazine because of the short period of consideration of the application the bank is unable to fully verify a potential borrower, and the risk of loan default for the bank grows, which is covered through higher interest rates. ” According to the “classical” credit bank asks the borrower’s proof of his income, and on express loans this document is not required. The latter can in part be explained and is still very popular express loans: the consumer is forced to pay more for credit, if you still receive the “gray” wages or living nadrugie “unconfirmed” income.
bank card, credit, express,- Types of bank cards
- Consumer finance market
- Black brokerage in consumer credit
- Choosing a credit card
- Forms of credit