Interest vs. finance charge

Article Abstract:

The improper use of the terms 'interest' and 'finance charge' by individuals in the credit industry has resulted in misconceptions about their meanings by Congress, consumers and in state legislatures. Interest is defined as the cost of money while finance charges are used to offset the cost of money and the cost of credit services, specifically the opportunity given to consumers to pay for purchases over a period of time. These terms are different and not interchangeable as perceived by many. Business must ensure that their personnel know the meaning of these terms and use these accordingly, to correct misunderstandings by people not connected with the business. Representatives in Congress and the media must also be educated about the needs of the credit industry because only then will there be legislation that is favorable to the industry.

DEPOSITORY INSTITUTIONS, Terminology, Credit, Jargon (Terminology)

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The times they are a'changing: credit marketing has evolved into a powerful function

Article Abstract:

Credit offers help generate increased sales and finance charge revenue. Proprietary credit cards provide an excellent chance to build a credit data base. Building, developing, and maintaining the consumer credit customer data base first requires finding new, qualified credit applicants. Outside factors such as inflation, interest rates, employment, social trends, and political forces must also be considered. A marketing strategy can then be developed, the first step being to define the consumer target market. Prospects may be classified by way of psychographics, demographics, and geographic location. The next marketing strategy step is to define and evaluate one's competition. The marketing staff or a marketing agency can then develop strategies and tactics to help get the credit offer into the targeted market.

Finance, Retail industry, Retail trade, Strategic planning (Business)

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Four keys to success: creation of mortgage reporting technology

Article Abstract:

Key Communication Services is a company that markets turnkey credit reporting systems tailored to its clients' needs. Reformatting credit information to suit the client has allowed Key Communication to grow from a one man operation to a nationwide network with $4 million in sales for 1985. According to this company's executives, the formula for success is niche marketing, coupled with commitment, talent, innovation and service.

Information technology, Entrepreneurship, Garmon, Charles, Key Communication Services

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