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1. How do credit companies or banks earn a profit when they loan money? by selling stock by taxing accounts by charging interest by loaning to everyone 2. According to the video, aside from fees, what is a drawback to having credit? an uncertain earning potential you purchase more things people cannot get credit 3. The fee that is charged for using credit is commonly referred to as ___. assets collateral interest penalties

Respuesta :

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the credit companies make money by charging interest at the end of the month or next time you do your taxes  if you have't paid back what you used with the credit.

Answer:

1. How do credit companies or banks earn a profit when they loan money?

The answer is - by charging interest

Credit companies and banks always charge interest rates on the loan amount. The rates vary and the interest amounts also vary. If the loan amount is large, the interest to be paid will also be large. This is the way the financial institutions make profit.

2. According to the video, aside from fees, what is a drawback to having credit? The video is not given but as per question option A looks like the answer.

The answer is - an uncertain earning potential

3. The fee that is charged for using credit is commonly referred to as - interest.