Faculty

Economic and administrative sciences

Career

International Business

Student

Daniela Trujillo

Teacher

Alexandra Pacheco

Money, in a nutshell. <Credit cards>

Bogotá D.C

2023
 Money, in a nutshell. <Credit cards>

1. Objective

Identify the raison d'être of the documentary "money, in a few words", focusing on chapter
2 that deals with the history of credit cards. In the same way, analyze the basic principles
of the documentary and a little about the role that a person plays in the game of credit
card companies.The history of credit cards originates as an experiment in capitalism.

2. background and history

It all started when in September 1958 60 California residents received by mail a plastic
card with their names and addresses, loaded with $500. Soon millions of people had a
bankamericard card. Credit is a simple but radical idea. You're always going to see
someone with extra money who's willing to lend it, and someone else who needs that
money right now and could pay it back later, and connecting them has always been one
of the biggest drivers of the economy. but this could include risk (risk because people
might not pay).

On the other hand, Elena Botella: She is a woman who worked for 5 years in “capital one”.
She said credit companies run thousands of experiments a year to figure out how to make
more money from each person. She also expressed that there are two types of clients:

Liquidators Is a person who pays your bill in full

Debtors: It is a person who does not pay their bills on time

3. Analysis

But companies don't like liquidators, and even liquidators are called “parasitic clients”
because the company doesn't make money from them. They also talk about a type of
customer with whom companies lose money and are called "hackers." Brian uses
company tricks to maximize rewards and never pay interest.

4. Observations

A study revealed that: a large transfer of wealth from lower income families to wealthier
families is also being created. And lower-income families are more likely to be in debt and
the biggest generator of wealth for credit card companies debiting "interest." And
generally the interests of credit card users are very high. Likewise, credit card companies
don't want people to pay off all their debt every month, and they also don't want people to
never pay off their debt. Similarly, companies put obstacles such as long and tedious
"contracts" to read, which have fine print and hide penalties for not paying an invoice on
time or late, for transferring balance to another card, or for using the card at an ATM.

5. Conclusions

The convenience of credit cards has its price. From banks' methods of earning more to
debt myths, this is how the system works. Finally, it can be understood that credit cards
only bring debt and it can be understood with The theory of running to nowhere that they
explained in the documentary: You get involved in something that has no end, that is, the
minimum balance that only removes one minimum amount each pay period and you end
up paying thousands of pesos for a long time. And some tips are: Choose the card that
best suits you with the lowest interest you can get and always pay the full balance.