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History of credit cards
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The invention of the modern day credit card by Alfred Bloomingdale, Frank McNamara, and Ralph Snyder in 1949 brought much debate about the invention by the people of the time, it helped and even put people in debt, and increased the amount of Credit Acts in Congress. The invention of the Credit Card is now America's main source of payment and an essential element of daily life. In the Spring of 1949, Alfred Bloomingdale, Frank McNamara, and Ralph Snyder came up with a new plan for a modern type of credit card. While out to lunch one day in New York, the President of the New York Credit Card Company Frank McNamara had forgotten his wallet at home (Evans 53) . He had a thriving business yet credit cards at the time were only given to selected people. The first modern credit cards was introduced by Diners Club Inc. because of this. The modern day credit card is a small, plastic, rectangle, more than three inches. There is an account number and a name that is embroidered on the front. The first credit card did not look much like what credit cards look today. They were made out of paper not plastic, and they weren’t cards they were a lot like a tiny booklet that had all the same information the modern day credit card has now(Weiss 38). The modern day credit card can carry up to a $200 line of credit meaning you can buy anything you want at that certain time and pay it back at a later date such as months or a year after that time. Some companies require you to pay the full amount of your charge on the card at once, but some allow you to pay in small amounts. In order to apply for a credit card you must be at least eighteen years of age and if you are not you must have an adult sign the paperwork to apply for one. Prior ... ... middle of paper ... ... a candy bar. These thin wallet size magnetic strips are the keys that unlock the vaults of banks, ATMs, and any cash dispenser around the world. Credit cards have become important sources of identification holding a name and number of a cardholder in just a thin card. There are many cardholders around today such as American Express, Discover, Master Card, and Visa. These companies go head to head with customers around the world. These thin wallet sized cards are a part of most Americans everyday life and some people are very dependent on them. If you come into a situation where you don’t have cash all you have to do is use your card and pay it off later. As many Americans say “I’ll charge it”, this has become a world wide saying. The modern day credit card was invented many years ago and will be continued to be in use for many years to come.
Modern day American capitalism is founded on the concept of credit. Credit, as defined by Dictionary.com, is “ Confidence in a purchaser’s ability and intention to pay,displayed by entrusting the buyer with goods or services without immediate payment,” (Online Etymology Dictionary. Retrieved April 23, 2014, from Dictionary.com website). This pent up credit is what causes consumer debt to swallow individuals whole, robbing them of their financial security. This consumer debt, defined as “ Money owed by individuals, generally for goods or services that they have purchased,” has become a norm among our society (Consumer Debt. (2010). The reason as to why consumer debt is becoming a prime concern for Americans is the inability to make payments, predation of citizens by credit card companies, and how immediate relief leads to disastrous long term results.
In addition, “if American Express going to be successful as a brand and as a marketer, they need to understand where consumers are doing it, how consumers are spending their time, where consumers want to access information, and how can American Express engage them. American Express has be used in countries all over the world for decades. It simply grew up with the baby boomers’ generation and has earned its reputation as a card with distinction. Through the years, the company has consistently reached consumer by keeping in step with the changing needs of the population. They also has acknowledge that it is the consumers who really decide what American Express stand for and not the company pushing out marketing messages. Further, American Express belie...
Cliff A. Robb and Deanna L. Sharpe began their article “Effects of Personal Financial Knowledge on College Students’ Credit Card Behavior” with clarification regarding the study and also a succinct historical introduction to the ‘invasion’ of credit card companies on college campuses. Their study was based on the analysis of survey data composed from 6,520 students at a grand Midwestern University. This study revealed that financial knowledge was a compelling factor in the credit card decisions regarding college students.
Everywhere public place you go it is hard not to run in to the idea of the credit card. You will see credit card logos on the front of every business. Every department store you go in has it’s own version of a credit card from Target to Macy’s. The Diner’s Club Card that originally was only for businessmen to eat lunch at 27 different restaurants. Now it is accepted almost everywhere. And for everything else there’s Mastercard……(or Visa, Discover Card orAmerican Express.
Credit card debt is one of this nation’s leading internal problems. When credit was first introduced, and up until around the late 1970’s, the standards for getting a credit card were very high. The bar got lowered and lowered to where, eventually, an 18 year-old college student with almost no income and nothing to base a credit score on previously could obtain a credit card (much like myself). The national credit card debt for families residing in the United States alone is in the trillions (Maxed Out). The average American family has around $9,000 in debt, and pays around $1,3000 a year on interest payments (Maxed Out). Many people have the concern today that these interest rates and fees are skyrocketing; and many do not understand why. Most of these people have to try to avoid harassing collecting agents from different agencies, which takes an emotional and psychological toll on them. While a lot of the newly recognized “risky” people (those with a doubted ability to make sufficient payments) are actually older people who have been customers of certain companies for decades, the credit card companies are actually consciously targeting a different, much more vulnerable group of people: college students. James Scurlock produced a documentary called Maxed Out on this growing problem, in which Senator Jack Reed of (Democrat) of Rhode Island emphasizes the targeting of college students in the Consumer Credit Hearings of 2005
Money, in the physical form, is rapidly dying and in its place credit and debit cards are
Credit cards are something that are almost needed in everyday life now, as most dont have the money available to purchase a car or house and so need credit, thus needing credit cards to help build that credit. Those cards are hard to handle, and receiving applications in the mail daily, and commercials appearing on television don’t seem to make the struggle of staying away any easier. This starts to spark an interest. So people begin to think, "I think I 'm responsible enough to get a credit card, I 'll only use it for emergencies." Then the application process begins and it may take a couple times to finally be approved for one. This only makes it worse, of course, because realizing how long a credit card wasn’t applicable to life, but now
...: A Critique of the Global Credit Card Society." International Journal of Comparative Sociology 38:1 June 1997, 77-82.
Credit card debt, can be easy to get into, but yet can take years to get out of. Credit card usage has become an increasing occurence in the 21st century for any person above the age of seventeen. Carrying cash has become uncommon for the average man or woman and unlike cash where someone is limited to only what they have in their wallet, credit cards can have upwards to thousands of dollars on them. Granted, there are great things about owning a credit card. For example, in case of an emergency and there is not enough cash to cover the expense, a credit card can be a great back up plan. However, with all the positives there are negatives, the biggest one being, a person can wind up in debt. Thus, credit debt is an individual’s fault, derived
As the economy booms, students are increasingly obtaining multiple credit cards. Because it is easy to get into piling of credit card debt without financial education, students should learn the proper use of credit cards before they have one. Professionals, politicians and the general public all provide different viewpoints to the importance of financial education for college students before holding a credit card. Dr. Carla Anderson and Dr. Karen Card’s “Effective Practices of Financial Education for College Students: Students' Perceptions of Credit Card Use and Financial Responsibility” written in College Student Journal and Leslie Richardson’s "Colleges and High Schools Offer Some Counseling for Credit Card Using Students." Written in Republican
In addition Terriljo (2013) stated that there were lot of attractive offers, benefits and discounts for a credit card holder. He also says that the credit card holders will be enjoying purchasing protection, extended warranty, easy instalment plans, and insurance packages that why Filipino’s really wanted to have one. Some people believe that the college students should have credit for emergency purposes, easier to get an...
Microcredit can be defined as small loans, or microloans, for people around the world in extreme poverty to help spur entrepreneurship. The issue of microcredit is extremely important in the world’s economy. Poverty alleviation and economic development are the primary goals of microcredit programs, that is why they began in the developing countries of Asia and Latin America, economist Muhammad Yunus and his Grameen Bank in Bangladesh are credited of pioneering this financial innovation (Smith, Thurman, 2007). After acquiring a loan, impoverished people get involved in self-employment projects that help them to start a business and begin generating income and in many cases leave poverty. Microcredit offers loans to poor people without requesting any financial history from them. These loans help to improve the quality of life of individuals and communities through commitment. In recent years, the idea of giving small loans to poor people became the darling of the development world, giving a way to propel even the poorest people into better lives (Jolis, 2011).
“When you use cash instead of plastic, you spend twelve to eighteen percent less because spending cash hurts” (“Dangers of Debt”). The issue of cash versus credit has become a big issue in society today. One may see benefits in using cash, while another may see benefits in using credit. However, the statistics are in favor of using cash, not credit. Using cash is a better decision than using credit, because cash is harder to let go of than credit, credit makes one go into more debt, and credit has risks and fees.
If we don 't have credit cards, we can’t build our credit history. If we don 't have a credit history, we aren 't allowed to buy cars or houses with low monthly payments. Having credit cards is a cycle in life because without one thing, we can 't have the other. When people have credit cards they have to use them. It doesn 't help that banks offer many credit cards to people, ending in high debt. Banks also encourage low monthly payments. If people pay low monthly payments, they will never end up paying their credit card debt off. They will probably end up paying for the objects they bought, two or three times. People aren 't forced to pay high monthly payments in order for it to take longer to pay the card off. If it takes longer for a person to pay a credit card debt, the credit card companies will be making a lot of money. I can definitely say I have experienced this because I am always offered to get a credit card. There are many stores that carry their own credit cards, and offer them for their customers. Offers are tempting and they can add to a future of credit card debt.
The introduction of the credit card first came around while the economy was booming in the early 1950’s. American consumers were in buy mode and the credit card was a genius idea to let people buy now and pay later. At first look this idea seemed great but what looks and sounds great does not always mean that it is going to be great overall. Over the years credit agencies have released thousands of credit cards with several questionable polices and high interest rates. “Any given American family in the present day possesses an average of eight credit cards with about 15,000 dollars of debt”(Canner 8). Many consumers have become addicted to wasteful cyclic consumption and living beyond their income due to the ownership of credit cards. The invention and continued implementation of credit cards into the American economic and social systems appears to be the cause of the struggling economy, the weakened U.S. dollar, the sky rocketing prices of gas and grocery store goods, the all-time highs of American debt, and social deprivation in some regions.