Credit Card ’s Talk

Credit Cards have become an absolute necessity so much so that we take them for granted. A number of money experts have already slated the paper currency as a dying dinosaur. But have you ever wondered where did this plastic money of credit card come from? Whose genius was it anyways?

Though the idea of ?have now, pay later? existed since the 1700s but it was only in the early 20th century that the banks started taking credit protection in form of overdrafts. In 1914 Western Union gave its customers a metal card allowing them interest free deferral payments. This gave their clients a freedom to spend beyond their means. However, the idea of actual credit card did not strike ?father of Credit Cards?, Frank McNamara until he forgot his wallet back home while going out for a dinner with friends.

This embarrassing moment was just too much for McNamara. Thus, he created the ?Diner?s club card?. It was initially a businessmen?s card for dinners and retails purchases while traveling but by the end of 1950 it had become a phenomenon. A national frenzy that began with just 200 customers who could use it in 27 restaurants, it swelled to such massive size that it spread over the whole USA with 20000 customers and more varied kinds of retailers subscribed to it as credit providers. The Diners card charged seven percent for each individual transaction with card subscribers paying a three-dollar annual fee. Stores and service companies readily extended this facility. They could benefit from it since the customers spent more than they would if they had to pay the cash up frontally.

The General Petroleum Corporation was one of the first companies to offer an actual credit card that allowed for fuel and automotive repair purchases to its employees. They could use their card and make payments towards these things with portions of their paychecks.

The monopoly of Diner?s club was short lived. McNamara withdrew his share of money from the company in 1952. Very soon American Express launched its similar yet more generalized credit card and Bank of America came out with BankAmericard (now called VISA) in 1958. Master card came up in 1966. These new market players overpowered the old titan.

While McNamara created credit cards, John Biggins is acknowledged as the inventor of the bank credit card. He worked at the Flatbush National Bank of Brooklyn in New York. In 1946, Mr. Biggins developed the Charge-It program in which local merchants who accepted the card would deposit sales slips into the bank and the bank billed the customer.

Joseph Kenny is the webmaster of the credit card comparison sites http://www.credit-cards-info.com/ and also http://www.creditcards121.com/

The simple fact of life today is that in many situations credit cards are vital. It is extremely difficult to rent a car for instance if you do not have access to a credit card in your own name. Also, shopping on line is not very easy at all if you do not have a credit card. While many websites will accept debit cards, if you are trying to book a hotel abroad or buy from any website based abroad, it can be next to impossible to find a payment method other than credit card. This is why more and more people are seeking to get credit cards, even when they have poor credit histories.

Guaranteed Acceptance Credit Cards

There are now a number of credit cards available that do not rely on a good credit history. The lenders are willing to provide these cards to absolutely everyone no matter what their credit rating may show. This is very good news for people who have bad credit ratings but still need access to a credit card. There are some important differences between these credit cards and regular cards however, so it is a good idea to be aware of the features that are different.

What?s the Catch?

The most obvious feature that people come across, and one that can surprise customers the most, is the existence of a subscription or set up fee for the card. This may be just as little as five pounds a month but can be substantially higher. There are also cards that charge an annual fee and these may prove to be better value if you plan on keeping the card for more than a few months. While customers have become accustomed to not having to pay for their credit cards, these fees are in many situations more than worth the expense given the convenience that the card will bring.

Don?t Abuse These Cards!

Another feature of these cards is that the interest rates and penalty charges for late payment are often very high. Interest rates can easily be as much as twenty five or even thirty per cent so you probably do not want to rack up too much debt on these cards. Also, if you miss payments there may be provisions for very high penalty fees and even for your interest rate to be increased. So if you are planning on getting a credit card targeted for those with bad credit, then make sure it is not something that is going to get out of hand and that you will be able to control your expenditure on it. Also, you should probably only take one out if it is for a specific necessary purpose, and not simply for occasional shopping.

Joseph Kenny writes http://www.CardGuide.co.uk, which offers some of the best credit cards in the UK.