Consumer Credit

The End Of The American Dream The use of consumer credit has become an increasingly important aspect of the U.S. economy. Everyday Consumers use different forms of credits to purchase a certain good. For example, credit cards, loans, store cards, auto finance, and mortgages are the most common. Overall consumer credit has many uses and forms, but it however can cause many problems. One problem that originates from consumer credit is stress. Another dilemma that can occur is going into debt. But besides being stressed out about the debt that you owe, Americans also feel insecure about consumer credit. For example, credit cards are often approved without any type of income testing and carry abnormally high interest rates (Debt Stress...). For this reason credit card companies should do a background check for people who are trying to obtain a card. Another way credit card companies can help ease Americans is by lowering rates and …show more content…
Often times creditors pick and choose their audience wisely they pick and choose who to pick on and , are often very smart with this as they tend to succeed into getting the people they want into debt. However, if one was always able to pay for things without ever needing to borrow money, credit would not be important. But not many people can manage that. To save enough cash to pay for major purchases is very hard. An education or a home can cost more than the average american makes in a few years. Sometimes the need for something comes quickly and there's not enough time to save. So that being said credit is pretty much needed to get anywhere in life, However good credit can get you a car or a home, and bad credit can make you lose your car or home, and just as mentioned before one must be very wise in order to maintain good credit, as credit is like purchasing power, one must use it