The History of Credit Cards
The History of Credit Cards
And Other Free Debt Industry Related E-books
By Al Schwietzer
April 19, 2009
We’ve become a “plastic nation”, a society addicted to buying on credit at the consequence of living beyond our financial means. Many blame our nation’s debt crisis on the use of “credit”, a method of purchasing goods or services without using cash. If the entire credit balance is not paid, the issuer adds interest to the amount owed, thereby increasing your balance and creating “debt” to the cardholder. But how much debt is too much? That depends on your “debt ratio” number. Your debt ratio is an important number to know. It tells you how your monthly debt payments compare to your monthly income. A high debt ratio might indicate that your monthly expenses are becoming unmanageable. It also might discourage lenders from loaning you any more money.
Almost taking it for granted that we have an option of purchasing goods or services without using cash; the total outstanding credit card debt carried by Americans reached a record $951 billion in 2008. But how much do we really know about them, their origination and history? I’ve researched some fun, interesting facts on the history of credit cards for those inquiring minds that just need to know. For additional debt industry related E-books and information, click on the links provided at the end of this article.
Enjoy!
• According to Encyclopedia Britannica, “the use of credit cards originated in the United States during the 1920s, when individual firms, such as oil companies and hotel chains, began issuing them to customers.” Western Union, however, issued purchase cards to its best customers as early as 1914.
• Gas cards came before most other types of credit cards. In the 1920’s, as more and more people purchased automobiles, many gas stations began to issue cards, which could be used to make fuel purchases.
• Originally devised as a marketing ploy to help increase the customer base of many retailers, store credit cards came next.
• Revolving credit came onto the scene in the 1930’s and 40’s. The stores started off by allowing customers to pay off their debt over a series of months, requiring the debt to be paid in full before further purchases could be made.
• John Biggins, Flatbush National Bank, Brooklyn, New York invented the first bank issued credit card. In 1946, he invented the “Charge-It” program between bank customers and local merchants
• In the 1950’s, Ralph Schneider introduced the concept of an all-purpose credit card that could be used in lieu of multiple charge cards. Enter the cards we know today: Visa, American Express, Diner’s Club, and others. These major companies soared in popularity in the 1970’s and 80’s.
• In 1950, The Diners Club issued their credit card in the US. Originally, because the c customer had to repay the entire balance when billed, The Diners Club card was technically a charge card.
• American Express issued their first credit card in 1958.
• Bank of America issued the BankAmericard (now Visa) bank credit card later in 1958.
• By the early 1960s, more companies offered credit cards, advertising them as a “time-saving device” rather than a form of credit. American Express and MasterCard became huge successes overnight.
• By the mid-’70s, the U.S. Congress began regulating the credit card industry.
Other Free Debt Industry Related E-books and Information:
Discover How You Can Stop Collectors In Their Tracks!
Make a Fortune Right Now From Other People’s DebtStart Making Money With Your Own Debt Negotiation Busines
