John Biggins is the man given credit for creating the idea of credit cards in 1946. He started off with the “Charge-it” program where people could deposit sales slips in the bank and then the bank would then bill the customer who would use the card. It wasn’t too long after that Frank McNamara founded the Diner’s Club. In 1950 its card was issued throughout the United States. The initial intentions were that it pay for restaurant bills but others caught on to the idea and expanded on it. After both “Charge-it” and Diner’s Club, in 1958 American Express issued their first credit card and following them was Bank of America whose card now is now popularly known as Visa (used to be Bank of Americard). When credit cards first became popular they were advertised as time-saving devices rather than a form of credit. Soon after that, credit card regulation became very important. Whether or not sending masses of credit card offers to those who hadn’t requested it was okay and how many penalties can be put on late payments were questions that Congress and the Supreme Court had their hands in. Today credit cards provide us with ways to get things we can’t if we don’t have the money, a way to build credit, and for many a way to fall into debt quickly.
According to a 2015 study done on credit card debt in households, the average home owes about...
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...umulate more debt each month. Credit card companies also make money off of all the different fees that they have. An annual fee charges a customer every year in order to keep their accounts open. Another fee is the late fee that charges when a payment is paid late. A cash advance fee is a charge to access the cash credit line on a card holder’s account. Overall there are many ways that issuers and credit card companies make money.
Over the years credit cards have become the most used form of payment. What started off as a simple Charge-it card has evolved into a magnetic striped card and following that an EMV smart card. These improved changes have made things both better and worse. Fraud is incredibly harder but accumulating debt is much easier. Credit cards are very beneficial and if a person has self-control there is no need to worry about being caught up in debt.
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