A credit squeeze is a term in economics where two factors occur at the same time to stifle the supply of credit. Usually during credit squeeze interest rates shoot up and people with a marginal line of credit tend to be deprived of any opportunity for acquiring the same. A credit squeeze is also called a financial crunch, a credit crunch, or a credit crisis in which the availability of credit becomes dearer.
Credit counseling is a broad term that offers education to customers about how to avoid debts that cannot be repaid. Credit counseling can be paradoxically debt counseling since debt is the direct result of having open lines of credit at your disposal. Credit counseling usually involves a debt management program (DMP) that aims to reduce the consumer’s debt by consolidating it.
Visa Inc. which is commonly referred to as VISA (Visa International Service Association) is a multinational corporation based in California, USA. The company controls and operates the world’s largest electronic payment network. It is a common misconception that the main objective of the company is to issue credit cards to its consumers. Visa issues credit cards with the help of its clients which are financial institutions or banks.
There are hundreds of terms, laws, and definitions related to credit cards and credit card transactions. Sometimes the acronyms and the jargon can confuse a consumer and make the matter appear more complicated than it really is. Some of the most commonly used important terms related to credit cards may help you in understanding the workings of credit cards.
