I am always wondering about credit card companies. For example, let me say, someone has a card which has a value of $10,000 or more. What if s/he buy what ever s/he wents with all this money and leave the country. What guarantee do they have so that s/he won't leave the country?
2006-08-18 07:52:51 · 15 answers · asked by Smile 1 in Business & Finance ➔ Credit
They have no gaurantee, but they approve people based on their credit payment history.
2006-08-18 07:58:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
They don't have a guarantee that you won't leave the country but I'm pretty sure most people who have credit cards don't just run off and leave the country. There's tons of people who have more credit than they can afford and they never leave the country.
2006-08-18 08:01:05 · answer #2 · answered by bella_4624_19 4 · 0⤊ 0⤋
There is no guarantee...the card company may loose the money, but be sure that the losses are passed on to paying customers who are honest by increased rates. Doing something like this is dishonest, and creates very bad Karma....Karma is something that no one can escape, and the debt must be repaid 10 fold...I, for one, would not want that hanging over my head. Good luck
2006-08-18 08:01:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋
They have no guarnatee whatsoever that the debtor will pay the debt. That's why the better credit score you have (proof that you can afford to pay, and that you have in the past) the lower interest rates and higher credit line you get.
Without proven repayment you get a lousy interest rate and a low credit line.
2006-08-18 08:01:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Plus the credit card companies are insured for things like this, so they get their money in the end.
2006-08-18 07:59:33 · answer #5 · answered by aplusjimages 4 · 0⤊ 0⤋
there's no guarantee, but if they try to come back into the country, their credits will be ruined by then and would have a problem buying a car, renting a car, buying a home, getting loans, etc. everything would need to be done with cash to get by.
2006-08-18 08:00:35 · answer #6 · answered by islandgrl 4 · 0⤊ 0⤋
they just write it off it is a risk they take. The more they write off the higher interest rates will be and that affects all the consumers. But there credit will be bad for 7 years.
2006-08-18 17:01:07 · answer #7 · answered by sarah a 2 · 0⤊ 0⤋
That is the risk they willing to take. that is a small a mount compare to citibank report 16 billion profit last year or bank of america with 12 billion profit in 2005
2006-08-18 15:40:42 · answer #8 · answered by Hoa N 6 · 0⤊ 0⤋
Companies can write it off and charge the paying customer more.
2006-08-18 07:58:52 · answer #9 · answered by Unique 4 · 0⤊ 0⤋
She can leave and pay later with interest. One person to them is not a problem.
2006-08-18 07:59:07 · answer #10 · answered by jewingengleman 4 · 0⤊ 0⤋