Credit Cards
The History of Credit Cards
Today it’s referred as the old plastic but all credit card buffs know that the first credit cards were not made of plastic but cellulose and metal plates.
Encyclopedia Britannica documents that, 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.
Also, in the 1920′s, stylish stores in the United States issued them to their favorite customers.
So at that time they were highly localized in acceptance. So if you lived in Los Angeles you couldn’t use your credit card in Chicago.
But credit cards gained nationwide usage after the likes of Henry Ford gave the world mass produced automobiles. The ability to travel across America had the unintended consequence of popularizing the credit card usage.
The 1950’s saw the founding of the Diners Club, which now is one of the biggest credit card companies worldwide.
Its founder, Mr. Frank McNamara probably was surprised the way his start up turned out to be.
The card was first intended to enable Diners customers to have their meals without paying for them, and Diners club would foot the bill. The customers then would repay Diners Club.
In 1951, Bank of America, encouraged by Diners success, started a card that is now called VISA. And other California banks started their card which later became MasterCard. The American Express made its debut in 1958.
At that time, the banks realized that the card business was a mass market business, and they later began mailing anyone with address (some of them dead) offering the new found craze.
Credit Cards Do’s and Don’ts
There is a lot of truth in the advice that credit cards are not a substitute for not having money. Every time you use a credit card this should be the theme replaying in your mind. And you would do good to remember the following too.
Do’s.
* Always plan for the purchases that you need and those that you want. You need the essentials, and you want everything else. The ability of making a distinction might help you plan wisely.
* If caught up in financial difficulties, it’s always good to talk to the issuer who might re-schedule your payments. If you simply default, that only helps to build up an unfavorable credit history and you might find yourself being denied credit next time.
* Unless it is an emergency, staying within your credit limits will help you a great deal. If you must spend over the limit, ensure you are within the manageable levels, say within 30 percent.
* And if your mails are flushed with more favorite deals than you currently are enjoying, you may approach your issuer for a better deal. They want to retain you as their customer, so they will listen.
Don’ts
* Do not use your credit card to make house hold purchases. It’s expensive in the long run
* Do not just pay the minimal amount. You will end up paying exorbitant interest. The quicker you clear the debt the better.
* Do not use the credit card to purchase things you can’t afford.
