What are your reasons for getting a credit card- Is it for financing your business or for paying household expenses- food electricity, education, loans. etc.? Whatever the purpose, have you considered the possibility of debt overload in the long-run because you failed to assess your financial capabilities and losing the collateral has placed your financial standing into an even greater risk?
When you turned the pages of the credit card bank’s terms and conditions, you are in denial until you received another set of bills coupled with excessive and burdensome charges. You cannot pay, you became delinquent. As a result, the credit card spending that spiraled out of control leads to a sad reality- financial dead end!
Credit card processing is fast nowadays, with a variety of banks and financial institutions that give credit using the benefits of technology- applications can be processed over the phone, via internet, and through mobile services. The absence of a systematized Credit Information System (CIS) to facilitate effective screening and evaluation of creditors by lending firms has several impacts. Some CIS were available in established financial firms but it is inaccessible to others hence, depriving them over CIS advantage during credit card processing.
The rapidly-changing global financial environment caused financial institutions to make drastic efforts to counter the effects of currency turmoil. Major currencies of the world are experiencing such problems like in East Asia in 1997. In turn, moves on strengthening financial institutions specifically bank’s capitalization had been continuously encouraged, backed by other institutions, business/commercial sectors and some governments.
The UN’s Millennium Development goals is directed to slash poverty and kick-start progress specifically targeting the deadline through the Global Microcredit Summit on 2015 for a “range of measures including the halving of extreme poverty, halting the spread of HIV/AIDS and boosting universal primary education.” Financial institutions (lenders) can take part in these concerns.
Despite campaigners that includes Bangladeshi economist Nobel Peace Price winner Muhammad Yunus, Bill Gates, Queen Sofia (Spain), and philanthropist George Solos, micro-credit programs remains idealistic with a young support-system supported by developing countries.
The establishment of a systematized CIS is an important step specifically in the assessment of credit applicants. Credit cards has gain international distinctions over global commerce, thus encouraging its use in the micro-credit program implies opportunity to explore a diversity of markets and trades. It helps address problems of any country’s financial systems from vulnerability to further losses, exposure to bad debts, and more growth opportunity lost.
The strength of a banks as a credit-financing institution depends on its capitalization- on the other hand, banks can eye on options such as merging, tie-ups to other institutions permitted by existing laws as solutions to stabilize its finances. These may result to reversible/irreversible outcomes and more often leads to some financial back-slash due to unforeseen effects. As a result, the banks can always pass burdens to its client/creditors.
Meanwhile, advertisements/promotions on some benefits/privileges offered by credit cards along with perks may not suite client needs forcing them to avail of such services. These strategies lure clients to take no control of their credit-spending and further pushing them to disregard their liabilities as creditors. Their excessive dependence on collateral to secure their credit lines and the credit card provider’s lack of concern to address their creditors concern all contribute to credit card delinquency.
Collaterals are significant in a banks’ financial standing. However, it may not always be convertible to fund its operations/credit services. If banks fail to evaluate and understand the behaviour and historical profile of its borrowers and credit card holders, its financial standing may be put to risk for bankruptcy leaving its legitimate clients to financial crisis.
Owning a credit card entails responsibility. Relationship of client to lender should not be on a short-term/ during credit applications only. Partnerships should facilitate for an environment to design/redesign financial products/processes suited to respective clients- best achieved by personalizing transactions but not abandoning technology in the process because this implies morality in action (Working together as well as trading with each other in markets.)
Credit card firms access to accurate CIS: financial information- insurance, mutual funds, credit ratings and assets will enable them to make more informed credit decisions while strengthening credit discipline. As a result: reduced processing time and costs to lenders (Among are assured of the good credit standing of borrowers, reduced risks of default and shortens administrative cost.) that is expected to reduce financing cost of borrowers.
This move will spur lending to the retail market, improve growth, coordination of different financial sectors thus create niche to support microcredit programs. Imagine a credit card can have another purpose.
When you turned the pages of the credit card bank’s terms and conditions, you are in denial until you received another set of bills coupled with excessive and burdensome charges. You cannot pay, you became delinquent. As a result, the credit card spending that spiraled out of control leads to a sad reality- financial dead end!
Credit card processing is fast nowadays, with a variety of banks and financial institutions that give credit using the benefits of technology- applications can be processed over the phone, via internet, and through mobile services. The absence of a systematized Credit Information System (CIS) to facilitate effective screening and evaluation of creditors by lending firms has several impacts. Some CIS were available in established financial firms but it is inaccessible to others hence, depriving them over CIS advantage during credit card processing.
The rapidly-changing global financial environment caused financial institutions to make drastic efforts to counter the effects of currency turmoil. Major currencies of the world are experiencing such problems like in East Asia in 1997. In turn, moves on strengthening financial institutions specifically bank’s capitalization had been continuously encouraged, backed by other institutions, business/commercial sectors and some governments.
The UN’s Millennium Development goals is directed to slash poverty and kick-start progress specifically targeting the deadline through the Global Microcredit Summit on 2015 for a “range of measures including the halving of extreme poverty, halting the spread of HIV/AIDS and boosting universal primary education.” Financial institutions (lenders) can take part in these concerns.
Despite campaigners that includes Bangladeshi economist Nobel Peace Price winner Muhammad Yunus, Bill Gates, Queen Sofia (Spain), and philanthropist George Solos, micro-credit programs remains idealistic with a young support-system supported by developing countries.
The establishment of a systematized CIS is an important step specifically in the assessment of credit applicants. Credit cards has gain international distinctions over global commerce, thus encouraging its use in the micro-credit program implies opportunity to explore a diversity of markets and trades. It helps address problems of any country’s financial systems from vulnerability to further losses, exposure to bad debts, and more growth opportunity lost.
The strength of a banks as a credit-financing institution depends on its capitalization- on the other hand, banks can eye on options such as merging, tie-ups to other institutions permitted by existing laws as solutions to stabilize its finances. These may result to reversible/irreversible outcomes and more often leads to some financial back-slash due to unforeseen effects. As a result, the banks can always pass burdens to its client/creditors.
Meanwhile, advertisements/promotions on some benefits/privileges offered by credit cards along with perks may not suite client needs forcing them to avail of such services. These strategies lure clients to take no control of their credit-spending and further pushing them to disregard their liabilities as creditors. Their excessive dependence on collateral to secure their credit lines and the credit card provider’s lack of concern to address their creditors concern all contribute to credit card delinquency.
Collaterals are significant in a banks’ financial standing. However, it may not always be convertible to fund its operations/credit services. If banks fail to evaluate and understand the behaviour and historical profile of its borrowers and credit card holders, its financial standing may be put to risk for bankruptcy leaving its legitimate clients to financial crisis.
Owning a credit card entails responsibility. Relationship of client to lender should not be on a short-term/ during credit applications only. Partnerships should facilitate for an environment to design/redesign financial products/processes suited to respective clients- best achieved by personalizing transactions but not abandoning technology in the process because this implies morality in action (Working together as well as trading with each other in markets.)
Credit card firms access to accurate CIS: financial information- insurance, mutual funds, credit ratings and assets will enable them to make more informed credit decisions while strengthening credit discipline. As a result: reduced processing time and costs to lenders (Among are assured of the good credit standing of borrowers, reduced risks of default and shortens administrative cost.) that is expected to reduce financing cost of borrowers.
This move will spur lending to the retail market, improve growth, coordination of different financial sectors thus create niche to support microcredit programs. Imagine a credit card can have another purpose.
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