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| English: First 4 digits of a credit card (Photo credit: Wikipedia) |
Credit cards work to make tremendous revenues to credit card companies, banks & retail sales. They do not however work the way they used to work for the customers that temporarily possess them. Lots of years ago when credit cards were invented & I was a young boy they were a way to finance household items thought about necessary. These were things like washing machines & clothes dryers. Credit cards today have such a high interest that they are no longer attractive to buy such items. Credit cards are primarily now appear to be used to hide & avoid indebtedness.
There is nothing nice about debt. Americans have been satisfied by retail salesmen & the banks that to have nice credit must have a solid credit history through credit cards or credit accounts. A solid history means over the fact that you have consistently made payments on time without failure. The credit card companies & the banks assess your spending tends, the debt load over time, your savings history, checking deposit history & actual check spending history. This personal information is felt by these institutions to be proprietary, belonging to the institution because of their matchless methods of collection, than belonging to the individual who creates this activity.
A credit card, if it is the only credit card you possess, could start improving a portion of bad debt only in the event you liquidate your current debt in a steady, reliable manner. This will only show a history of reliable payment. As I have already said banks & credit card companies are not interested only in your reliability, they require the "juice" off of the advanced credit you have obtained. This means they only require you in the event that they can get their interest in a regular & steady manner. This is not the same as pay your debt regularly until it vanishes. They require you to stay indebted permanently but repaying them in a timely manner.
In the event you are debt free you may not be judged to be a nice credit risk. This is the state that underage children & young adults find themselves whenever they try to secure a credit card. Basically said, nice credit doesn't mean what it did fourteen years ago. The protections afforded the consumer since the Depression of 1929 no longer exist. The Financial Laws passed through Congress in 1992 allowed banks, insurance firms,especially medical insurance firms investment firms to handle banking, insurance & investment operations. Laws passed after 1929 had prevented banks from insurance & direct stock exchange trading, likewise insurance firms could not pursue banking operations or stock exchange nor could stock exchange companies pursue insurance or banking operations. This freedom was granted without the later protections of the consumer included in these new laws. There currently exists no single body of consumer law. The private citizen must fight the triumvirate of bank,insurance & stock exchange through the court method.
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