Using Of Credit Cards: The Starting Point
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Cardholder Benefits » Using Of Credit Cards: The Starting Point

Using Of Credit Cards: The Starting Point

Add to Favorites:

According to "The Survey of Consumer Payment Choice" of the Federal reserve bank of Boston (January 2010), there are 176.8 million credit card holders in 2008. Also the report would state that there is an average of 3.5 credit cards held by a credit card holder.

Reflected in these given figures is how the people especially American families rely more on credit cards in purchasing items far more than using cash. Well, who would not be interested in this kind of payment when it is offering advantages that one could not resist at all. Among the listed pros for using credit card is the fact that you actually need not to carry huge amount of money especially if you are planning to purchase expensive items. Everyone could be enticed with the convenience of using credit cards in letting its holders to make orders or transactions over the phone or by mail.

Your spending using credit cards also come into a single statement which is a helpful way of keeping track of your purchases. In addition to these, most people rely on credit cards most since they are allowed to pay in installments for big time purchases.

The popularity of credit card use could not be questioned, but how did it all start?

The idea of "buy now pay later" kind of transaction started as early as 3000 years ago. In ancient Egypt and Babylon civilizations, people who do not have hard money to pay for an item will have an agreement with the merchants to pay for the purchase at later date. Merchants would then put into records who owes what and when the payment would be. Ancient people use credit tokens like coins and metal plates to record debts. Another way of keeping track of balance due was used by tallymen in United Sates and Great Britain in the 18th century and this was through the use of wooden sticks with notches. Notches on one side would represent the settled payments while the notches on the other side would stand for what is still owed.

In 1920s, the idea of having this credit power in a card was given birth in the United States. It was introduced by hotels and oil companies to have their customers avail products and services and have them pay later.

This mode of payment became even more popular during World War II. Finance companies started to offer credit cards as well hence becoming competitors for banks and other financial institutes. The first universal credit card in history of the United States came in 1950s when the Diner¡¯s Club founder Frank McNamara started issuing them to customers.

During late 1950s, the popularity of using credit card even went higher and in 1958, the first charge card that could be used in travel and entertainment expenditures was pioneered by the American Express Company.

The Bank of America in 1959 issued the "first truly universal credit card" in California which led other banks and financial institutions to follow the trend. And until present the history of the use of credit cards continues.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Other Cardholder Benefits Research:

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading