ADVANTAGES OF CREDIT ECONOMY FOUNDATIONS OF CREDIT

BASIS OF CREDIT
1. It generates additional funding
1. Capacity 2. Capital 3. Character 2. It presents opportunity 1. Assistance
4. Collateral 5. Condition 3. It can increase government spending 2. Confidence
6. Currency 7. Confidence 4. It benefits the economy 3. Stability of money
5. It postpones financial outlay

DISADVANTAGES OF
SOURCES OF CREDIT ECONOMY
CREDIT 1. Credit may lead to

CREDIT SYSTEMS: inflation

INDIVIDUAL MONEY LENDERS
STORES
PAWNSHOPS
COMMERCIAL BANKS
2. It can lead to wastage

FUNDAMENTALS,
INVESTMENT BANKS
DEVELOPMENT BANKS of resources
SAVINGS BANKS
RURAL BANKS 3. Unlike cash, it has
EMPLOYEES’ COOPERATIVES OR
pervasive effect
SOURCES & BASES
SINKING FUNDS
CREDIT UNIONS
INSURANCE COMPANIES 4. It can burden next
SOCIAL SECURITY SYSTEM
GOVERNMENT SERVICE INSURANCE
SYSTEM
generation
HOME DEVELOPMENT MUTUAL 5. It can reduce spending
FUND/PAG-IBIG FUND

CLASSIFICATION OF CREDIT CARD

ACCORDING TO CLASSIFICATION OF ADVANTAGES OF
CREDIT CARD
DISADVANTAGES OF
CREDIT CARD
MATURITY
CATEGORY USER
Consumer Credit
Long-term Credit CREDIT CARD Ease of purchase Blowing your budget
Medium-term Credit RELEASE OF THE LOAN SECURITY
PURPOSE Protection of purchases High interest rates and
Short-term Credit 1.Lump sum Secured Credit
1. Agricultural Credit
MANNER OF PAYMENT 2.Installment Unsecured Credit Character Loan
Building a credit line increased debt
2. Industrial Credit Emergencies
Lump sum HOW THE CREDIT IS GRANTED Credit card fraud
3. Commercial Credit
Installment Direct Credit Credit card benefits, points &
4. Real Estate Credit
Discount Loan bonuses
5. Export Credit