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What is one way credit card companies make money? b. by charging fees when customers don't pay back borrowed money.
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According to the article "A Big Credit Card Buy," why might Elizabeth Warren be concerned about the deal between Capital One and Discover? a. she believes it could harm competition and lead to higher fees for customers.
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In the article "All About Credit Cards," how does Matt Schulz's advice about using credit cards demonstrate responsible financial habits? b. he suggests learning how credit cards work before getting one and paying off debt quickly if it occurs.
read both articles:
1.A Big Credit Card Buy!
You’ve probably seen someone use a credit card in your daily life. A customer at a grocery store might whip out a little piece of plastic at the cash register. They quickly swipe or tap it at a machine — and just like that, the purchase is all done! It’s not magic… it’s credit!
One big credit card company in the United States is Capital One. People spend billions of dollars using its cards every year. On February 19, that company made a big announcement. It said it will buy a smaller credit company called Discover. Capital One wants to pay $35 billion for Discover — and Discover agreed to let the deal happen.
For a credit card company, more customers means more money. About 50 million Americans have a Discover card in their wallets — and under the deal, all those credit customers would become part of Capital One.
Michael Rhodes is the CEO and president of Capital One. He called the business deal an “opportunity to bring together two very successful companies.” Rhodes added that the plan would create “significant value for consumers.”
It’s not clear yet if the deal will actually happen, though. Top U.S. officials will need to approve the big buy before it can go through. Those officials would need to make sure that the deal is fair for customers across the country.
Some leaders already think the deal is unfair. One of them is Elizabeth Warren, a U.S. senator. She called the deal “dangerous,” and argued that it would “harm working people.”
Warren’s worries relate to how credit cards make money every day. One main way is through small fees. Credit cards may seem like magic — but people need to be careful with them. The cards make it very easy to borrow money. People need to pay that money back, usually at the end of the month — but if customers don’t pay the money back, it can lead to big fees that can add up quickly. Warren is concerned that Capital One could charge higher fees if there are fewer credit companies available.
It will likely take at least a year before the deal could go through. What do you think? Is this a business boost or a credit catastrophe?
Updated February 22, 2024, 5:03 P.M. (ET)
By Ryan Cramer
2. All About Credit Cards
You’ve probably seen someone use a credit card. A customer at a store will whip out a little piece of plastic. He or she swipes it — and just like that, the purchase is done! It’s not magic. It’s credit!
But how does this work? Matt Schulz is a credit card expert. “A credit card is a simple way to borrow money from a bank,” Schulz told News-O-Matic. “Each month, you have to pay the borrowed money back,” he added. Most people have credit cards. They “make it really easy to buy things in stores or online,” Schulz explained.
Not everything about a credit card is easy, though. “Credit cards can get people in big, big trouble,” warned Schulz. “If you don’t pay all the money back, the bank will charge you extra money,” he explained. That extra money is called interest. With every month that you can’t repay the bank, the interest goes up. “It can be really scary,” said Schulz.
The bank always keeps track of what a customer owes. It all adds up into debt. This debt also includes any of the extra interest that the bank has charged the customer. And Schulz says this interest can make debt “grow faster than you'd ever imagine.”
How do you get out of debt? You start by “not buying anything else with the card,” said Schulz. Then, you “pay as much debt as you can each month until you’ve paid everything you owe,” he said. “It can take many years to pay off, but it is very, very important,” said Schulz.
Schulz had a final message for readers. “If you use a credit card the right way, it can be awesome,” Schulz explained. “If you don’t, it can cause you big problems. That doesn't mean you should avoid them, though. Just do your homework first! Understand as much about credit cards as you can before you get one,” he said.
In the United States, most people have to be 21 years old in order to get a credit card. But before that time comes, learn how to spend safely! You can be a money master.
Updated January 23, 2018, 5:02 P.M. (ET)
By Ryan Cramer
Answer the following question, what is one way credit card companies make money?:
a. by selling credit cards in stores
b. by charging fees when customers don't pay back borrowed money.
c. by offering rewards points to costumers
d. by giving away free credit card machines
According to the article "A Bit Credit Card Buy" why might Elizabeth Warren be concerned about the deal between Capital one and Discover?
a. she believes it could harm competition and lead to higher fees for costumers.
b. she thinks discover has too many costumers for capital one to handle
c. she is worried about the companies not having enough money for the deal.
d. she believes the deal will increase competition and harm smaller companies.
In the article "All About Credit Cards," how does Matt Schulz's advice about using credit cards demonstrate responsible financial habits?
a. he encourages avoiding credit cards entirely to stay out of debt.
b. he suggests learning how credits cards work before getting one and paying of debt quickly if it occurs
c. he recommends using credit cards for expensive purchases only.
d. he advises borrowing as much as possible to build good credit quickly
7 answers
can you make a Venn diagram between the two articles?
Certainly! Below is a textual representation of a Venn diagram comparing the two articles "A Big Credit Card Buy" and "All About Credit Cards":
A Big Credit Card Buy
______________________________
| |
| - Discusses Capital One's |
| acquisition of Discover |
| - Highlights concerns from |
| Elizabeth Warren about |
| potential fees and market |
| competition |
| - Focuses on the business |
| side of credit cards |
| - Mentions CEO Michael |
| Rhodes' perspective |
| |
-------------------------------
| |
| Both Articles |
| _________________________ |
| | | |
| | - Covers credit cards | |
| | - Discusses borrowing | |
| | and repayment | |
| | - Notes potential risks | |
| | associated with | |
| | credit card use | |
| | | |
| ------------------------ |
| |
| |
-------------------------------
| |
| All About Credit Cards |
|______________________________|
| |
| - Explains how credit |
| cards work and their |
| mechanics |
| - Warns about the dangers |
| of debt and high interest |
| - Provides advice on using |
| credit cards responsibly |
| - Emphasizes the importance |
| of being informed |
| |
------------------------------
Summary:
-
A Big Credit Card Buy focuses on the acquisition of Discover by Capital One and includes concerns from politicians like Elizabeth Warren about competition and fees.
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All About Credit Cards provides an overview of how credit cards work, the potential risks and benefits, and advice for responsible use.
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Both Articles touch on aspects of credit cards, including borrowing, repayment, and the associated risks.
can you say it again? but in a simple easy answer without using big words???
Sure! Here’s a simple version of the Venn diagram information:
A Big Credit Card Buy
______________________________
| |
| - Talks about Capital One |
| buying Discover |
| - Mentions Elizabeth Warren |
| and her worries about |
| higher fees for people |
| - Focuses on business issues |
| |
-------------------------------
| |
| Both Articles |
| _________________________ |
| | | |
| | - Discuss credit cards | |
| | - Talk about borrowing | |
| | and payments | |
| | - Mention risks | |
| | | |
| ------------------------ |
| |
| |
-------------------------------
| |
| All About Credit Cards |
|______________________________|
| |
| - Tells how credit cards |
| work and their rules |
| - Warns about the problems |
| of debt and high costs |
| - Gives tips on using cards |
| wisely |
| |
------------------------------
Summary:
-
A Big Credit Card Buy talks about the deal between Capital One and Discover and mentions concerns about fees.
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All About Credit Cards explains how credit cards work and gives advice on using them safely.
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Both Articles discuss borrowing, payments, and risks related to credit cards.
which of the following statements is a key message shared in both articles?
a. credit cards can be very helpful when used correctly but they can lead to serious financial problems if not managed properly
b. credit card companies should not be allowed to charge interest on unpaid balances
c. credit cards are only useful for in-person shopping
d. credit card deals will always be approved by u.s officials without concern for consumers.
Which of the following is a common concern expressed in both articles.
a. credit cards are always beneficial and easy to use
b. not paying back credit card debt can lead to high fees
c. credit cards are only used in stores, not online
d. the u.s government is planning to regulate credit card companies
Review the graph found in the article, A Big Credit Card Buy! to answer the question shown below:
billions of u.s dollars
1,200 |
_____||_1140_|
1,000 ||______|__1030__|
800 ||______|________|
600 ||______|________|_.563.4_|_.534.5_|_.480.6_|
400 ||______|________|_______|_______|_______|
200 ||______|________|_______|_______|_______|__.210.7___|__.190.8___|___.171.6___|
.........0|______|________|_______|_______|_______|__________|__________|___________|
............Chase.....American.....Citi.....Capital.....Bank of.....Discover.....U.S Bank.....Wells Fargo
............................express...................One.......America
What was the combined total of purchases by Capital one and Discover customers in 2022?
a. 534.5 billion dollars
b. 323.8 billion dollars
c. 745.2 billion dollars
d. 210.7 billion dollars
Using what you've previously learned in live lesson regarding credit cards and loans which of the following is a key difference between using a credit card and getting a loan?
a. with credit card, you have to pay the full amount back all at once, while a loan allows you to pay back smaller amounts over time.
b. a credit card gives you money upfront while a loan gives you a card to make purchases
c. credit cards usually have a fixed amount of money you can borrow, while loans let you borrow as much as you want
d. loans are used for small purchases while credit cards are used for large purchases.
a. credit cards can be very helpful when used correctly but they can lead to serious financial problems if not managed properly
b. credit card companies should not be allowed to charge interest on unpaid balances
c. credit cards are only useful for in-person shopping
d. credit card deals will always be approved by u.s officials without concern for consumers.
Which of the following is a common concern expressed in both articles.
a. credit cards are always beneficial and easy to use
b. not paying back credit card debt can lead to high fees
c. credit cards are only used in stores, not online
d. the u.s government is planning to regulate credit card companies
Review the graph found in the article, A Big Credit Card Buy! to answer the question shown below:
billions of u.s dollars
1,200 |
_____||_1140_|
1,000 ||______|__1030__|
800 ||______|________|
600 ||______|________|_.563.4_|_.534.5_|_.480.6_|
400 ||______|________|_______|_______|_______|
200 ||______|________|_______|_______|_______|__.210.7___|__.190.8___|___.171.6___|
.........0|______|________|_______|_______|_______|__________|__________|___________|
............Chase.....American.....Citi.....Capital.....Bank of.....Discover.....U.S Bank.....Wells Fargo
............................express...................One.......America
What was the combined total of purchases by Capital one and Discover customers in 2022?
a. 534.5 billion dollars
b. 323.8 billion dollars
c. 745.2 billion dollars
d. 210.7 billion dollars
Using what you've previously learned in live lesson regarding credit cards and loans which of the following is a key difference between using a credit card and getting a loan?
a. with credit card, you have to pay the full amount back all at once, while a loan allows you to pay back smaller amounts over time.
b. a credit card gives you money upfront while a loan gives you a card to make purchases
c. credit cards usually have a fixed amount of money you can borrow, while loans let you borrow as much as you want
d. loans are used for small purchases while credit cards are used for large purchases.
-
Which of the following statements is a key message shared in both articles? a. credit cards can be very helpful when used correctly but they can lead to serious financial problems if not managed properly.
-
Which of the following is a common concern expressed in both articles? b. not paying back credit card debt can lead to high fees.
-
What was the combined total of purchases by Capital One and Discover customers in 2022? a. 534.5 billion dollars.
-
Using what you've previously learned regarding credit cards and loans, which of the following is a key difference between using a credit card and getting a loan? a. with a credit card, you have to pay the full amount back all at once, while a loan allows you to pay back smaller amounts over time.
1 answer