Credit is
defined as money available for a client to borrow. Consumers use
credit cards in place of money to borrow money from a bank or
credit card company. Banks and credit card companies allow the
consumer to pay off the credit at the end of the month, or to
make smaller payments month to month.
To make money
on credit, banks and credit card companies will charge interest
on the money borrowed on credit. Interest is defined as a fixed
charge for borrowing money; it is usually a percentage of the
amount borrowed.
Web Resources
How
Stuff Works
http://money.howstuffworks.com/
credit-card.htm
Federal
Trade Commission’s Web Site on Credit
http://www.ftc.gov/bcp/conline/edcams/
credit/index.html
Six
Dirty Little Secrets About Credit Cards
http://credit.about.com/od/creditanddebitcards/
a/022305.htm
