OK_WHATEVER
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read her other questions guys |
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free4wil
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There interest rate on them are sky high. |
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.
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they make money off the high interest you pay each month. |
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Fliquer.
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Buy making you pay transaction charges. |
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AlaskaGirl
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Credit card companies make money through the discount charges they charge merchants who accept credit cards (a percentage of each sale), interest charges when you carry a balance, late-payment fees, and sometimes annual fees. |
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sjstalost
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R u kidding? Very high interest, for one. If you're late a time or two the interest goes even higher. They know many ppl will only pay the min. monthly payment, which doesn't bring the balance down much at all. If you owe 100's and only pay $50 a month, you'll be paying for along, long time. They make a killing!! |
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b-overit
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good question.....i think they are a charitable bunch with your best interests at heart. They genuinely care for you, and don't encourage you to buy crap you cant afford so eventually they'll own your house from the interest you pay equivalent to the money you borrowed which in reality they don't have in the first place because someone elses interest paid for it. Quite a nice scam actually, well tuned and nowadays apparently normal and healthy. |
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Terry G
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Because you are only paying for the interest, In other words, They loaned you cash, and you pay for it in interest. |
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dawn18415
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They charge you interest. |
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mommy
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By all the interest you pay. Also any late or overdraft fees. |
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Maji
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They make alot of money through finance charges, the less you pay on your balance every month to them, the longer you have to pay interest, and that's how they make billions of dollars.
And if you fail to pay anymore or file bankruptcy they charge it off and do tax deductions from their income, so they really don't lose anything. |
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myway
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As long as you swipe your card when making payment to all your purchases, and every month you do not make full payment to the credit card outstanding balance on your account but only minimum payment. That's where the credit card company earned their money and profit....The credit card company charge 2% per month on your outstanding balance and they are compounded every month so as long as you do not make full payment on your outstanding balance you have to pay thru your nose... as time goes by....THIS IS HOW CREDIT CARD COMPANY MAKE THEIR MONEY AND PROFIT |
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TurnMeOut
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Credit card companies make money in many ways. First, they charge the merchant that processes your card. That merchant pays for the privilege of being able to access your money through a third party. The credit card company may also charge you in a variety of ways:
Annual fees
Interest on your debt
Late fees
Cash advance fees
You will generally receive a monthly bill that allows you to pay of the balance or pay them any amount equaling at leas their minimum finance charge. The minimum finance charge generally covers slightly more than whatever the interest on the debt for that month would be. If you pay only the minimum amount, it will take many years to pay off your debt. |
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ItsPossibleButNotLogical
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Well Each Item you buy they pay for.. for example lets say you bought socks.. for $1 . your credit card peeps well buy it adn you have to pay 50 cents. But... when one of your account balances
have a higher debt than your going to end up payin more than 50 cents |
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Gunner
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From twits like you. |
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minitheminx65
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It's a little thing called interest....you will have to pay more than you BORROW... |
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sandy l
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its called interest . you are paying them money lots of money to have the borrowed money. each month you don't pay it off you pay more . look at your statement and you will see the daily monthly and yearly interest charges.
be care full credit cards are a terrible way of borrowing money as they charge a great deal more in interest then a bank loan. |
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so far north
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If you charge 100's of dollars a month, you will eventually have to pay back all of it, not just $50. If you're only paying $50, then the unpaid balance is accumulating (and must be paid eventually), and you're being charged interest - large interest - on that balance.
You should always pay off the full amount every month. If you think you're getting something for nothing, you're going to be in for a big surprise soon!
They make money from two main sources: (1) interest on unpaid balances, and (2) fees charged to the retailer that accepts the card from you (usually 1.5 to 3.5%).
Trust me... they make LOTS of money! |
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*****
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The make money off of the finance charges they tack on your bill monthly, if you don't pay the full amount owed. If you have $500 in credit card bills, and you pay the minimum of $ 10 every month, it would take you about 15-20 years to pay , and your interest would be somewhere between $2000 & $3000 for the $500 principal you owe[assuming you don't add anything else to the credit card bill]. |
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sacramento person
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I think they make money off the money you pay them. And, stop wasting points by posting questions that everybody knows the answer to! |
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As Real As It Gets
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If you calculate what you're paying over time as opposed to how much you've spent on your pruchases, you should see a rather large difference in those two numbers. The difference is what the credit card company makes.
Example:
You charge $450.00 on your credit card.
You pay $45.00 a month on it for one year to "pay it off".
$45.00 X 12 Months = $540.00
$540.00 - $450.00 = $90.00
$90.00 = Credit Card Company Profit |
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soyouwithher
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They make money from you!
Even you have to pay 50 each month it doesnt mean that you dont have to pay what you charge to your credit card. You are just paying a part and they will get more money at the end... because they charge you an interest.
Advice for you... if you do not want to make them rich.. pay the entire debt every month and just use your credit card for emergencies or to finance your expenses in a month... it´s just a simple way to keep your finances healthy |
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bujiboy
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they charge the business a percentage of the transaction |
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beaux b
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They charge interest and some charge annual fees. |
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Webballs
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The interest that you pay is the money that they make!!! |
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James Q
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interest |
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Z R
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They charge you interest on the other $50 and my feeling is you are asking stupid question for the heck of it and I am gonna tell you this I am going to answer all of them. |
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