Credit Cards Are Big Business

You are probably aware the consumer finance is huge business in today’s world. But credit cards are one of the biggest parts of that. They are a magic idea from the banks point of view as they enable people to easily get into debt. They charge a much higher rate of interest that most other types of consumer finance. They allow charge interest on the interest that was charged the months before. They are basically a money making dream made by an inspired person. You can read about the history of credit cards here.

Many credit cards that are issued with one name on them are actually just a brand name for a bigger credit card company. For example many football credit cards, charity credit cards and even credit cards by some of the smaller banks are just names put on them by a bigger company. The football club for example will get a cut of every transaction, but the card is not actually run by them. It is not them that are lending you the money but a large international retail bank. These cards are called affinity credit cards.

The reason for this is that the financial industry is very savvy from a marketing point of view and realises that the more cards out there and the more people trying to sell those cards on your behalf, the better.

There are countless websites like this one which advertise credit cards on a commission basis. Most of them are making between reasonable profits and very large profits. So you see there must be a lot of money in it otherwise the banks would not pay out such large sums to these marketing companies. This is why they also have affinity cards, because it attracts people to get a card for another reason. They want to have their football club on the card. So they may get this credit card just because it has the football club on it.