The Issue and Risk Analysis of the Credit Card

In order to analyze the risk of the credit card in a systematic way, the probability of certain action and utility function are used in the paper. According to the review of the rapid development of domestic credit card market, the potential risk of the application and the issue of a credit card is discussed. Through the illustration of the consumption using a credit card, the most probable condition is obtained when a customer would like to repay the loan on time. Moreover, the individual credit rating system, marketing and approval mechanism, the added value of the credit card, encouragement and penalty regulations, consumption management and some relative angles are considered to solve the problem of credit card´s risk. Several suggestions for market operation are given in the end.