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First Credit Card
Friday, May 15, 2009
First Credit Card
Credit was first used in Assyria, Babylon and Egypt 3000 years ago. The bill of exchange - the forerunner of banknotes - was established in the 14th century. Debts were settled by one-third cash and two-thirds bill of exchange. Paper money followed only in the 17th century.
The first advertisement for credit was placed in 1730 by Christopher Thornton, who offered furniture that could be paid off weekly.
From the 18th century until the early part of the 20th, tallymen sold clothes in return for small weekly payments. They were called "tallymen" because they kept a record or tally of what people had bought on a wooden stick. One side of the stick was marked with notches to represent the amount of debt and the other side was a record of payments. In the 1920s, a shopper's plate - a "buy now, pay later" system - was introduced in the USA. It could only be used in the shops which issued it.
In 1950, Diners Club and American Express launched their charge cards in the USA, the first "plastic money". In 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York. But it was only until the establishment of standards for the magnetic strip in 1970 that the credit card became part of the information age.
The first use of magnetic stripes on cards was in the early 1960's, when the London Transit Authority installed a magnetic stripe system. San Francisco Bay Area Rapid Transit installed a paper based ticket the same size as the credit cards in the late 1960's.
The word credit comes from Latin, meaning "trust".
The first advertisement for credit was placed in 1730 by Christopher Thornton, who offered furniture that could be paid off weekly.
From the 18th century until the early part of the 20th, tallymen sold clothes in return for small weekly payments. They were called "tallymen" because they kept a record or tally of what people had bought on a wooden stick. One side of the stick was marked with notches to represent the amount of debt and the other side was a record of payments. In the 1920s, a shopper's plate - a "buy now, pay later" system - was introduced in the USA. It could only be used in the shops which issued it.
In 1950, Diners Club and American Express launched their charge cards in the USA, the first "plastic money". In 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York. But it was only until the establishment of standards for the magnetic strip in 1970 that the credit card became part of the information age.
The first use of magnetic stripes on cards was in the early 1960's, when the London Transit Authority installed a magnetic stripe system. San Francisco Bay Area Rapid Transit installed a paper based ticket the same size as the credit cards in the late 1960's.
The word credit comes from Latin, meaning "trust".
Imrove your Credit
Imrove your Credit
1. Stop using your credit cards.
In a bad credit situation, one of the worst things you can do is continue accumulating debt by making credit card purchases. Put your credit cards away until you have more control of the situation.
2. Get a copy of your credit report.
You can't begin repairing your credit until you know exactly what you need to work on. Obtain a copy of your credit report from each of the three major credit bureaus to find out which accounts need work and which are just fine.
3. Clean up your credit report.
If your credit report contains incorrect information, you have the right to have it removed. Your credit report will include information about disputing inaccurate information with the credit bureaus.
4. Get current on delinquent accounts.
Your payment history makes up 35% of your credit score. Getting current on your delinquent accounts will have a great impact on your credit.
5. Don't put in any more credit applications.
As long as your credit is in repair mode, you should avoid making any more applications for credit. It's likely that you'll get turned down for credit and the applications will only decrease your credit score.
6. Keep accounts with balances open.
You might be tempted to close out credit card accounts that have become delinquent, but wait. Before you close any account make sure it won't negatively affect your credit.
7. Call your creditors.
Right now they're certainly the last people you want to talk to, but you'd be surprised at the help you might receive. Talk to your creditors about your situation. Many of them have temporary hardship programs that will reduce your monthly payments until you can get back on your feet.
8. Pay off your debts.
You will have to start paying off your debts to improve your credit situation. If you don't have the money on hand, sell some of your belongings to speed up the process. It will be a sacrifice, but the financial freedom you gain will be worth it.
9. Get professional help.
Resources, like consumer credit counseling, are available to assist you. If you are overwhelmed by your credit situation, seek professional assistance. You can locate a credit counseling agency through the National Foundation for Credit Counseling.
10. Be patient.
Your credit wasn't damaged overnight, so don't expect it to improve in that amount of time. Continue paying your debts and over time you will see an improvement in your credit.
Over Limit Charges
Over Limit Charges
Definition:
Fee imposed for exceeding your credit limit in purchases, fees, or finance charges, usually only applies to revolving credit.
History of Credit Card
History of Credit Card
Credit cards have become an established and inescapable part of our society. They are one of the primary forms of completing a purchase transaction in most retail businesses. Even tradesmen such as appliance repairmen or plumbers accept them. How did this all come about? Let's examine the history of the ubiquitous credit card.
The Encyclopedia Britannica tells us 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." But let's see if we can pin it down a little closer.
It is widely believed that the creator of the original credit card issued by a bank was John Biggins in 1946. Biggins worked in Brooklyn, New York at the Flatbush National Bank. He called his creation the "Charge-It" program.
Here's how it worked: Transactions were made between Flatbush National's bank customers and merchants that conducted business locally. These business owners would deposit the sales slips at Flatbush National and in turn the bank would proceed to bill the customer. A brilliant move, the Charge-It program was a convenience for the bank customers and a boon for the local merchants, who reeled in the extra business.
Another theory credits Diner's Club as being the first credit card back in 1950. The credit card issued by Diners Club was conceived by Frank McNamara, Diners' Club creator. It was only used to pay restaurant bills. The intent was to give the dining member a feeling of security because he or she did not have to carry a great deal of cash when going out to eat in the evening.
A minor technicality of this theory is that the Diner's Club Card is really a “charge card “ rather than a credit card because the user could not carry a balance over from month to month.
The Encyclopedia Britannica tells us 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." But let's see if we can pin it down a little closer.
It is widely believed that the creator of the original credit card issued by a bank was John Biggins in 1946. Biggins worked in Brooklyn, New York at the Flatbush National Bank. He called his creation the "Charge-It" program.
Here's how it worked: Transactions were made between Flatbush National's bank customers and merchants that conducted business locally. These business owners would deposit the sales slips at Flatbush National and in turn the bank would proceed to bill the customer. A brilliant move, the Charge-It program was a convenience for the bank customers and a boon for the local merchants, who reeled in the extra business.
Another theory credits Diner's Club as being the first credit card back in 1950. The credit card issued by Diners Club was conceived by Frank McNamara, Diners' Club creator. It was only used to pay restaurant bills. The intent was to give the dining member a feeling of security because he or she did not have to carry a great deal of cash when going out to eat in the evening.
A minor technicality of this theory is that the Diner's Club Card is really a “charge card “ rather than a credit card because the user could not carry a balance over from month to month.
Secured Credit Cards
Secured Credit Cards
A secured card requires a cash collateral deposit that becomes the credit line for that account. For example, if you put $500 in the account; you can charge up to $500. You may be able to add to the deposit to add more credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits.
Cash Back Credit Cards
Cash Back Credit Cards
Many credit cards will now offer you cash back incentives for using their credit cards. Depending on how much your balance is and how often you use the credit card, you can earn cash back for your purchases. Some companies offer 1% off your balance while others, like Sears, will offer you cash off purchases made in their store. Either way, if you are planning on using a credit card, finding one that will offer you a cash incentive is a smart choice.
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