Oligopoly on Credit Cards Instant Spending Power Essay Sample free essay sample

In recent old ages. the usage of hard currency has been replaced by the usage of the recognition card. or bear down card. Very simple. efficient and practical. recognition cards has seemed to replace hard currency in the billfold of many consumers exerting their new found disbursement power with the usage of the fictile card. But before we proceed any farther with the treatment. allow us specify the footings used in the rubric of the paper. Harmonizing the American Heritage Dictionary. the recognition card is a fictile card holding a magnetic strip issued by a bank or concern authorising the holder to purchase good and services on recognition. [ In consequence. the recognition card allows the purchaser to buy item/s or unafraid payment on services rendered to him/her by availing of the recognition line that the bank or concern has extended to the consumer. ] It gives the consumer enormous flexibleness in the facet of disbursement power at his disposal. We will write a custom essay sample on Oligopoly on Credit Cards: Instant Spending Power Essay Sample or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page â€Å"Definitions† Oligopolymeans a market status that the Sellerss are so few that the actions of anyone of them will materially impact the monetary value and have mensurable impact on rivals. The retail gas market is an illustration of an oligopoly. Let us specify other market conditions to give a clearer position of the status and therefore do for a better apprehension of the province that is mentioned. Atrustis an international mob. combine. or swear particularly formed to modulate the monetary values and end product in some field of concern. For illustration. theOrganization of Petroleum Exporting Countries( OPEC ) is an illustration of a trust. They are a little group of manufacturers of a good or services. who agree to modulate supply in an attempt to command or pull strings monetary values. [ OPEC does this by modulating the production end product of its member states and therefore commanding the supply and accordingly the monetary value that oil can be purchased in the market. ] Aduopolyis a state of affairs in which two companies own about all of the market for a given type of merchandise. Duopolies manufacture the same merchandises and aim the same market. A more familiar term to most of us is amonopoly. In amonopoly. there is sole control of a trade good or service in a peculiar market that makes possible the use of monetary values. Oligopsonyis a market status that exists when there are few purchasers in the market. ( it can be considered the antonym of oligopoly. in which there are few Sellerss in the market ) . As a consequence. they can greatly act upon the monetary value and other market factors. There are many other market conditions that can be discussed. but allow it do that the above mentioned market conditions are mentioned to pull out a better apprehension of the topic at manus. â€Å"Oligopoly in the Market: The Existence or Non-existence† We do non contend the presence of an oligopoly in the market today. The motions of the companies that offer the same merchandises are a given. The presence of recognition card companies seems to be booming in the market today. This fuel the thrust for the consumer to purchase good that the individual may or may non necessitate in the present clip. But what has the recognition card industry given in the part of the purchasing power of consumers? Does the broad pick of card companies in the market have an impact to the purchasing populace? Among the advantages that the recognition cards offer is the increased purchase power and easiness of purchase. Credit cards are really helpful in the sense that purchases of points can be convenient ; particularly when the idea of transporting big sums of hard currency is non an immediate option or hard currency on manus is short. We might non like the thought of transporting big amounts to do purchases at shops for our demands. and the recognition card is one manner of guaranting that we can get the points that we want from the shops. Another advantage is the protection of purchases. Items can be damaged or faulty. so the recognition card statements from the bank or shops can help in the confidence that the points are covered by pertinent ordinances and supply cogent evidence that the points were purchased from any peculiar shop. Constructing recognition lines is another built-in advantage to holding a recognition card. When you have a good recognition history on the card. doing loans and other fiscal minutess in the hereafter can be easy accomplished in the visible radiation of good recognition history. if payments on the recognition loans are sacredly paid by the client. We besides can trust on recognition cards to do exigency purchases if we are short of financess. or in doing big purchases that are frequently non planned or budgeted out by the individual or the household. Sicknesses or sudden unwellnesss can do the instance for recognition cards because this can pay for these unexpected disbursals and non set the person in a peculiarly inconvenient fiscal crunch. But. on the lighter side. most recognition cards offer a myriad of benefits. such as price reductions from shops and concerns. fillip strategies and air hose stat mis for free. Many carry insurance for their clients for those that help of it in procuring travel agreements. and recognition cards are largely accepted in abroad trips every bit good. But as with all benefits that an point can supply. there are besides disadvantages that are built-in in the availment of an point. as the advantages of recognition cards have been discussed. there are the disadvantages to the usage of recognition cards. As we listed earlier. transporting around a recognition card makes the option of transporting a batch of hard currency is eliminated. or at least bought to a bare lower limit. But that advantage may besides work out as a disadvantage. because it can take to mistreat on the portion of the consumer Among the most obvious is the chance of traveling over your budget. Not merely in the sense that when a individual makes purchases. more frequently big 1s. the recognition cards still have to be paid away. The single thinks that the money spent on the point is the lone disbursal that he/she will do ; they forget that the company supplying the line of recognition has charges inlaid with each usage of the card. High involvement rates on the card can supply unexpected budgetary spendings to the otherwise planned budget for the period. Of class. we can non overlook that the usage of the recognition card will do an extra impact on the fundss of an person in the signifier of increased debt. Credit card companies make money every clip that you use the card by bear downing you involvement on the purchase that the individual has made. Some charge 2 to 2. 5 % on the purchase. but some charge even higher than that. For illustration. if you don’t pay off the point that you purchased for $ 100. card companies charge 10 times the involvement rate on the purchase. In consequence. they will be bear downing 20 to 25 % on the $ 100 that you owe them. So. it is wise to look at the disbursement forms of the card users so that merely carefully thought of purchases on the card are made. and the budget is non â€Å"maxed out† . so to talk. Besides the benefits of the cards are non certain that they will be accepted in ALL shops or stores ; these tend to change from concern to concern. So. is the solution acquiring more than one card or roll uping several cards to guarantee that we carry the RIGHT card? â€Å"Is More the Merrier? † To convey the affair into focal point. we can non seek for broad applications of the usage of recognition cards ; that will take to excessively many angles in the country. So. let’s focal point on one market that can provide the reply to the job at manus. For the intent of replying the inquiry. let’s focal point on one sector with a comparatively high usage of recognition cards. Again. we must province that recognition cards make money each clip that you sue the recognition cards by bear downing you with involvement for the purchase that you made with your recognition card. College pupils normally fit the market the recognition card companies have in head. High use. about limitless disbursement power and an remarkably high form for exigency disbursement. purchases for stuffs. books. and other disbursals in the class of their stay in college. But the pupils that help of the recognition cards normally come up with jobs that they don’t foresee in the usage of this fictile admiration. Research shows: Included in the research is the fact that pupils have an mean recognition card balance is undergraduates that have at least on card have high degrees of balance on their card in the sum of $ 3. 000 to $ 7. 000. The sad fact is in the concluding analysis. college pupils will be tied to a mountain of debt even before they can get down gaining for themselves or their households. What the statistics tell us is that with the addition in the figure of cards in one’s billfold dosage non warrant that the recognition bite will slow off. But certainly the grownup consumers will hold a better appreciation of their disbursement forms utilizing the recognition card. They have planned out the budget needed for the wise usage of the fictile card to safely remain in the bounds of the usage of the recognition card. Or do they? The image that the statistics show us is that the American family. and single. look to be doing no better in their usage of the recognition cards. Let’s cite a few. and so likely we can acquire a better position of the outrageousness of the job. And. in a sobering note. research leaves us with a astonishing aspect of the job with the incorrect and maltreatment of recognition cards. So. we can infer from the research that the maltreatment of recognition cards can hold important impact of the fiscal standing of the person with respects to the personal and household budget. But that does non look to halt the consumers from availing themselves of the installation. As indicated by the graphs here. the desire for recognition cards will reflect that the privation for cards are non diminishing in the visible radiation of the facts borne out by the research. but increasing. giving acceptance to the thesis that more people want to hold more than one card at their disposal. Recognition CARDS – NATIONAL AVERAGES â€Å"Conclusion† In the short and long term. recognition cards will be an indispensable and indispensable portion of our current manner of life. It seems that the privation to buy of points. whether needed or a luxury is non borne out of the informations presented. What is seeable is the possibility that when the usage. or the maltreatment as in this instance. can lend to the unneeded load of unwanted and at times expensive outgos that will present a job in due clip. What should be exercised in the usage of this newly-found purchasing installation is the proper direction of this resource so that the disadvantages will non go a curse to the client. but a helpful tool in the manner that we purchase the demands that we must hold to prolong our current manner of life. Discipline is the key to this job. and the deficiency of it can and will lend to the jobs of recognition card usage. Sound and prudent idea must be given to the continued usage and maintaining ourselves from impulse purchasing will greatly help us in avoiding the booby traps of the recognition card. Mentions Biel. C. ( 1999 ) . â€Å"Up to Their Ears in Credit Card Debt† . Retrieved November 26. 2007. hypertext transfer protocol: //www. gwu. edu/oapa/documents/Up_To_Thier_Ears_In_Credit_Card_Debt. pdf Houghton Mifflin Company ( Ask. Com ) . Copyright 2005. From the American Heritage Dictionary. Fourth Edition. . copyright 2005. hypertext transfer protocol: //www. ask. com Investopedia. com. 2005 December 24 20:05:15. â€Å"Definitions for Oligopoly. † ( Link from World Wide Web. ask. com ) . Retrieved November 26 2007. hypertext transfer protocol: //www. investopedia. com Spark Notes. Retrieved November 26. 2007. hypertext transfer protocol: //www. sparknotes. com/economics/micro/monopolies/section2. rhtml Sallie Mae Student Credit Loan Company. â€Å"Nellie Mae Library† . â€Å"Undergraduate Students and Credit Cards: An Analysis of Use Ratess and Trends† . ( 2001 ) . Retrieved 26 November 2007. hypertext transfer protocol: //www. nelliemae. com/library/research_9. hypertext markup language Additional Sites Association for Payments and for those that deliver payment services to clients ( Choosing and Using. com. ) . Retrieved November 26. 2007. hypertext transfer protocol: //www. choosingandusing. com/ch-types. htm. Mountain State Centers for Independent Living. â€Å"Advantages of Using Credit† . Retrieved November 26 2007. hypertext transfer protocol: //www. mtcsil/skills/budget=12. hypertext markup language Recognition Counseling Biz. Retrieved November 26. 2007. †Credit Reding Statistics. † hypertext transfer protocol: //www. creditcounselingbiz. com/index. hypertext markup language