Quote:
Originally posted by limited
quick question-
in an earlier reply you said that credit given by a retail store is considered "bad" credit, because its a higher risk. could you go into a little more detail about that? Why isn't money lent by Visa the same as lent by Macy's or Filenes?
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It is considered "bad" credit because the underwriting (approving) guidelines are generally much more lax than your conventional credit cards. Most department stores (as noted above) have much less to lose if a customer defaults than credit card companies. Also, people will generally buy more products if they can finance it, and so it promotes business, therefore giving them the reason to approve as many people as possible.
Hopefully this answered your question, if not, post again!