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Credit Card Facts – Top 10!!

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They sit in your wallet, but, how much do you know about them? Credit cards are a huge part of most people’s everyday life, but, they’re a relatively recent phenomenon. A bit more about the history of this influential financial device:

  1. Store cards predate regular credit cards by as much as 50 years. Issued in the early 1900s, the first cards could be used only in the store where they were issued. They were offered as a convenience to build customer loyalty.
  2. The first card that is similar to the Visa and MasterCards in your wallet today was the Charg-It. This was offered in 1946 by a Brooklyn banker named John Biggins. Merchants in New York would forward customers’ bills to the bank and Biggins would pay them and deduct the amount from clients’ bank balances.
  3. The Diners Club card was established in 1949 after a businessman named Frank MacNamara was embarrassed by the discovery that he’d left his wallet home while out on a business dinner. Deciding that there had to be a more elegant option than cash, he set out to create the card, which was soon accepted at restaurants and hotels. By 1951, there were more than 20,000 people with Diners Club accounts.
  4. American Express got into the card game in 1959 with a purple charge card. Before jumping into charge cards, American Express had offered their famous travelers checks and acted as a competitor to the US Postal System.
  5. The first credit cards that resemble the revolving cards we have now were introduced in 1966. The first card was established by Bank of America and called the BankAmericard. Later on, it became the modern Visa card.
  6. MasterCard followed Visa quickly. Originally known as MasterCharge, it was created by a federation of banks working together to provide nationwide credit card coverage.
  7. Even though American Express got into charge cards early, it was awhile before the organization started offering revolving cards. Original American Express cards needed to be paid in full at the end of each month. In 1987, they began offering a revolving card that could carry a balance from month to month.
  8. 51% of Americans have two or more credit cards. On average, they carry a little less than $9,000 in credit card debt.
  9. 1 in 10 have 10 cards or more. That’s higher than the portion of Americans that hold Masters degrees (8%) and roughly equal to the number of people who are left-handed.
  10. A credit card is a credit card, right? Not so! The familiar magnetic strip in American cards is no longer the chosen standard overseas. In Europe, there’s been a migration toward EMV cards which feature a microchip instead of the magnetic strip. There are about 20 card issuers in the US that offer cards with the chips; they’re not a standard feature, but one offered to customers who travel overseas a lot.

No matter what is in your wallet, manage your debt well. Used right, credit cards can be a handy and convenient tool for travel, nights out and day to day life.

For more information regarding how credit cards work you can request a free consultation below.

 

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No Credit – No Problem

No Credit No Problem

No credit, No problem! Chris & Nik talk about how to build a credit report from scratch.

“Is it true that you need to carry balances on credit cards?”

“What are some in-expensive ways to rebuild your credit?”

“How can someone build up their credit score in a short period of time to purchase a home?”

Chris Devin, host of Real Estate Talk Boston Radio and Vice President of Lending at Guaranteed Rate Mortgage asks Nik some great questions about how to build and then re-build credit from scratch.

As always please feel free to contact our office for a FREE consultation.

Rebuilding Credit Tools

Secured Credit Cards

More compared to that, credit cards are one of the methods creditors take a peek at our credit report past with and also they can in fact make or crack our opportunities for a good finance, a house or a task. We turn to protected credit rating cards.

Protected credit cards are a fantastic alternative to routine bank card. Whether you have bad credit rating terribly requiring repair work, cannot obtain a charge card or are new to the credit history scene, a protected bank card can assist you re-build or establish your credit.

Exactly how does it function?

That quantity than operates as your credit history line. If you transferred $700 in your account, you could use your safeguarded credit history card to acquire items up to $700, absolutely nothing even more.

Some financial institutions provide to offer you much more credit rating as an incentive for being a good customer (i.e., you pay your expenses on time) or perhaps allow you to charge up to a certain percentage more than your deposit amount. You simply should pay a small rate of interest to pay for that kind of usage.

What’s the minimum down payment amount?

Depending upon the type of card you selected or on the banking establishment, the majority of protected bank card will certainly require a down payment starting at $300. There is no restriction to the amount of you wish to include later.

Just what to look for in a secured charge card.

Compared to unsecured cards, secured credit cards call for yearly charges as well as have greater rates. If you’re shopping around for a secured card, make certain to get one that has no application cost. You will have to pay an annual cost so select a safe card that does not request an excessively high charge.

Keep an eye out for secured credit card agreements that conceal charges or ridiculous add-ons that you don’t truly need. An instance is one where a charge card business will certainly authorize your safeguarded card application offered you register for a monthly insurance policy that sets you back $50.

Where can I obtain a protected bank card?

If it’s still component of their item line, not all banks offer safeguarded credit report cards yet you can still inspect out your regional banking establishments. You can also consult your credit unions considering that numerous of them provide these cards to members only.

Utilizing safe credit cards to build credit rating

While many banks target customers that have never ever had credit history just before as the primary individuals for safeguarded bank card, several consumers use safeguarded bank card to assist re-establish their credit report. To do this, consumers require just to utilize their secured cards and ensure that the costs earns money each month. By developing their integrity, the customer sets up good credit report.

The future of safeguarded bank card

Protected bank card are still the choice of several card owners, yet several are surrendering their safeguarded cards for unsecured cards. Unsecured cards do not need money security, which accounts partly for their attractiveness. A safe bank card is still a fantastic selection, particularly for folks who are still building credit report or for those and are trying to restore their own.

Additional compared to that, credit rating cards are one of the means financial institutions take a peek at our credit past history with as well as they could actually make or crack our opportunities for an excellent loan, a house or a work. Compared to unsecured cards, protected credit rating cards require yearly fees and also come with greater rates. While a lot of financial institutions target clients which have actually never ever had credit history before as the main individuals for safeguarded credit rating cards, several customers utilize safeguarded credit rating cards to help re-establish their credit history. Protected credit rating cards are still the choice of lots of card owners, yet several are offering up their safeguarded cards in exchange for unsecured cards. A secured credit rating card is still a fantastic selection, especially for people who are still constructing credit or for those who are attempting to reconstruct their own.