The History of Credit Cards by: Shahid Khan

Credit Cards Replacing Paper Money

A credit card is a small piece of rectangular plastic that is no thicker than a sheet of paper, though it cannot be folded. Initially credit cards were metal tokens in the shape of coins, then they changed to metal plates to celluloid then fiber and now plastic with perhaps a photo of the holder and a magnetic strip on the reverse containing security information such as a personal identification number enabling the card to be used at money dispensing machines (ATM’s) and merchant establishments.

What is meant by ‘Credit’?

Credit is the system of buying some produce or service without having to pay for it at the time of the transaction. The payment is made at a pre-determined later date with the addition of a fee to the bill amount. This is like loaning someone money to buy something without actually giving them the cash but instead giving them the product they want to buy. So, the system of credit is not new to humanity in fact, it is as old as civilization itself or perhaps even older. The entrepreneurs of the inhuman kind have been proclaimed responsible for identifying human needs and wants as a rollicking business, and so they invented the credit card system. Though, disputed by many, The Diners Club is credited to be the ones to invent the credit card in 1950.

When Were Credit Cards Invented?

In contradiction to the theory that ‘The Diners Club’ started the credit card system, the Encyclopedia Britannica records the origin of credit cards www.onlinecreditcardsinfo.com in the United States as far back as the 1920’s. During this time firms such as oil companies and hotel chains started issuing credit cards to their regular and valued customers who were free to use their services and pay them at a later date. These cards were only useful for purchasing goods and services from the companies and establishments that issued the card. However, references to credit cards have been found as early as 1890 in Europe. It was only in the late 1930’s that companies started accepting each other’s credit cards and this is when things began to get complicated for accountants.

Computers Promoted The Use Of Credit Cards

In the beginning there were no computers to record the credit card transactions and the process of verifying the credit balance of the card was done manually through a regularly updated credit card directory, much like a telephone directory. This system was time consuming and tedious and provided many loop holes for credit card fraud. Today, with computerization, the use of a credit card is instantaneous. All one needs to do is to ‘swipe’ the card through a slot machine and the amount entered. If there is adequate balance in the account of the holder the transaction is completed and the customer billed a month later. Usually credit cards allow for a 50 day credit free period. If the outstanding bill is paid during this time the customer does not have to pay any interest on the transactions, else there is a whopping 2.9% charge per month on the bill amount.

Who Issues Credit Cards?

Banks and financial institutions are the main issuers and promoters of credit cards. The invention of the first bank-issued credit card is credited to John Biggins of the Flatbush National Bank of Brooklyn in New York. This was the year 1946 and Biggins did not know at the time that he had hit upon an idea that would take the world of credit by storm in times to come. From this first credit card called “Charge-It” many cards have flooded the market such as the all famous “American Express” credit card and the Diners credit card. The Bank of America issued the BankAmericard in 1958. This card is now known as the “VISA” card. Around the same time the popular MasterCard came into being. These are the two prevailing cards being used today. The era of plastic money had begun.

About The Author Shahid Khan, I am a web promotion Expert for Shade Sails visit our website http://www.shadeit.net/ and for Business Credit Card visit our website http://www.CreditCardsMadeSimple.info/

Never Pay Credit Card Interest Again...Secret Method Revealed by: Patti Oar

Do you have more than one credit card? Did you know that if you make one late payment your credit card company can and will raise your APR to the highest rate they charge? And did you also know that if this happens to you, all of your other credit card companies will find out and they'll raise your rates too? You can actually end up paying way more in interest than you actually owe the credit card companies.

First let’s examine what APR is. APR stands for Annual Percentage Rate. Simply put it is the percentage per year that you would pay on your balance. This is pro-rated to a monthly rate based on what you currently owe the company. Rates can fluctuate wildly depending on your current credit rating. Credit card companies reward those customers who have good credit ratings with the lowest interest rates. These rates can have a very wide range, but you won’t be able to qualify for the better rates if your credit isn’t impeccable.

Now of course the ideal situation is to pay your balance off in full each month, but sometimes this isn’t possible and you end up carrying an outstanding balance. In some cases you may have balances on more than one card. If this happens to you,my advice would be to pay the highest payment you are able to pay on the card with the highest interest rate, rather than the highest amount owed. Just keep in mind that every dime of interest is more money that you are paying to the credit card company. We seem to be more worried about paying extra shipping on items we purchase but seem to dismiss the extra money we pay in interest payments. That’s probably because it is largely unseen and in some cases hard to figure out how much we’re actually paying.

I personally try not to carry balances when I can, but periodically I have had balances on several different cards. But I can honestly say that I haven’t paid any interest on any of my cards since 1991.

The way I have accomplished this is very simple. I get an average of 3 or more credit card applications in the mail every day. I typically look for an offer with a balance transfer. These are very competitive. You can always find one with a 0% APR. But that’s not all you’re looking for. You want to find one with 0% for at least a year (you can sometimes find them for 18 months). The next thing you look for is when the 0% will expire, and what the APR will go up to when it does. You may be able to give yourself 18 months to pay off the debt without paying any interest and if not you will most likely be at a much lower APR than you currently have. Sometimes you can find 0% for 18 months and then 3.9% after that. Start adding that up and you can save yourself a lot of money if you currently have 6% or higher. Now you transfer your balances from your other higher interest cards and you can avoid paying any more interest. You could pay more, but WHY?

NOTE: You must pay attention to the deadlines and if you haven’t finished paying off your balance, by the time the interest rates kick in you will need to find another card offer and do it again. You will need to make sure you apply within about 6 weeks of the deadline to make sure you don’t wait too long. Be aware though that you can actually make your credit look bad if you have too many cards or credit lines, so when you transfer your balance you should cancel the old card so it is not showing up on your credit report.

About The Author Patti Oar has been an online marketer since 1996. Find your http://www.topten.ecreditdirectory.com