Now What is a Credit Card?

1.What do you know about credit cards? How do they work? Credit cards are a card with a certain amount of loaned money . You can charge purchases on it and either pay a monthly payment or pay the whole debt off. If not paid off at whole each month a interest rate is applied.



2. How many credit cards would you think the average person uses? Why do you think people have more than one credit card? The average person has 3 credit cards. People that have more than one credit either like the convenancy or people who only get paid once a month.



3. What information in the documentary most surprised you? The information about credit cards that most surprised me was the fact that if you miss a payment on anything not just your credit cards they can raise your interest rates. This is unfair and unreasonable missing a payment on your new car isnt relevant to the credit card.



4. Do you think the government should have a role in regulating both who can get credit cards and what interest and fees consumers should pay? If so, who should be the regulators? Who would benefit from such regulation? Who would lose ? Explain. Government should play a role in regulating credit card companies. I dont have a preferred regulator but i believe that people are stupid and need help from the loansharks credit card companies are. People would benefit ; but the credit card companis would lose.



5. How, according to the four "normal consumers" in the documentary , does owning a credit card or credit cards affect purchasing decisions? The normal consumers found the credit cards conveinent. They found that spending money they didnt have was tempting.



6. Who loses and gains the most from credit card companies' policies? Explain. Credit card companies gain while the regular people lose. Credit card companies win by charging random charges and by bumping up interest rates. People lose by falling for simple traps and lose money.

7. Has the documentary influenced how you might use credit cards in the future? Explain. No I still plan on having the same amount of credit cards. I will still use them sparingly and pay the payments.

8. Law professor Elizabeth Warren notes that families use credit cards to bridge the gap between what they earn and what they spend. What factors can lead to their inability to make required payments? Many ways can affect a families inability to pay their payments. Such as a family member getting sick or dies, if they lose their job, and if the parents have a divorce.