Today I saw them offering credit cards. Why do companies like this that have nothing to do with finance and where you probably only go once or twice a year offer credit cards?
In: Economics
Let’s remember what credit is. The company is giving you products for money that you don’t have, while you pay them back later.
Even if I was just a simple muffin baker, selling muffins from a cart on the side of the road, I could still offer credit to customers. You want 5 muffins but don’t have the money today? That’s ok, you can have them today, just pay me back later. How do we keep track of this credit I have just given you? With a card, so we can keep track of your credit and your details, so we can do this kind of credit transaction when necessary.
The card is just a tool to track the transactions. Credit is something that anyone can do for anyone else, whether you are a person, company, or bank.
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