Why are credit accounts categorized under banking?

SpeedyTheSnail

Why are credit accounts categorized under banking?

Boatnmaniac

IMO it is better to think of checking accounts, savings accounts and credit cards as Spending Accounts rather than Banking Accounts but that's really nothing more than a semantics issue.  As such it makes sense to lump them together with checking and savings accounts, no matter what the group name is.

It also makes sense to lump them together since it is banks that issue them.

There are people who think credit cards should be included in the Liabilities group and for people who have a lot of credit card debt that might be more appropriate.  But still, what is the function of credit cards as they are intended to be used?  They are intended to be used as spending tools.  So it makes sense to me to lump them in with checking and savings accounts.  Just my opinion.

Chris_QPW

Boatnmaniac said:

There are people who think credit cards should be included in the Liabilities group and for people who have a lot of credit card debt that might be more appropriate. 

For what is worth you can change a credit card account's "intent" (on the Account Details -> Display Options tab) to Liability if you want to group it that way.

Depending on the account type you can somewhat move accounts to different groups using the Account Intent setting.

Boatnmaniac

Chris_QPW said:

Boatnmaniac said:

There are people who think credit cards should be included in the Liabilities group and for people who have a lot of credit card debt that might be more appropriate. 

For what is worth you can change a credit card account's "intent" (on the Account Details -> Display Options tab) to Liability if you want to group it that way.

Depending on the account type you can somewhat move accounts to different groups using the Account Intent setting.

Thanks for reminding me of that.  For some reason it slipped my mind.  Yes, credit cards can have the Account Intent changed from Credit to Liability and then the account will be grouped with the other Liabilities instead of with the other Banking accounts.