Credit Cards In The 1950's

Credit was born from Alfred Sloan, “ He set up the nation 's first national consumer credit agency in the 1919 to make his cars affordable”( Digital History). Sloan wanted to make money, sloan was convinced that Americans were willing to pay extra for luxury and prestige. Thus he he created credit so people would buy his cars, even if they were costly. With this new product many americans began to buy cars, clothes,furniture,household products,e.t.c. Pretty soon cars came a symbol of the new society forming in the 1920’s.”In that year, one American out of every 5 owned a car, compared to one out of every 37 English and out of every 40 French car owners”(Digital History). In other words Sloan didn’t care about lowering his price so that more people could

When using credit cards, practicing self-discipline and common sense will allow an individual to use the cards as an advantage (Lynott, 2008). Advantageous tips are to limit the number of credit cards to two for personal use and two for business, charge only what you can pay off at the end of the month because that is interest-free, carry cash to pay for small purchases because they add up quickly on a credit card, become knowledgeable about the interest and additional fees and penalties, and focus on items that are needed and not just wanted (Lynott, 2008).

James D Scurlock’s “Maxed Out” focused on the revolving use of credit cards to charge now and pay later and the fact that once the credit card was maxed out another one was sent from the credit card companies and the whole process begins all over again. Scurlock’s essay made the reader aware of the downfalls and hardships that can occur when credit cards are constantly used for purchases compared to Kevin O’Donnell’s “Why Won’t Anyone give Me a Credit Card”.

Richard Fairbank and Nigel Morris, both diligent entrepreneurs, started laying the bricks for their eventual successful company, Capital One, in the late 1980’s. They both worked in the Virginia-based “Signet Bank”. Fairbank started noticing trends in the financial industry that he felt Signet was missing out on. These opportunities were in the credit card industry. He, as well as all of Signet Bank knew that the credit card industry was very risky, but Fairbank was ready to take a chance in this, what can be, highly profitable field.

Credit cards were not common during this period. First appearing in 1950, these were used mainly by the wealthy for convenience instead of carrying cash or a checkbook (Durkin & Price, 2000, p. 624).

The main argument throughout this documentary is that credit cards are the main cause of the debt crisis, which occurred in 2006 in America. Credit cards are portrayed throughout this documentary to carry negative consequences, aiding in the corruption of the system, and ultimately creating debt problems that America faces as a nation. The main question we are left with is, can we as a nation live without credit cards?

Not only for those seeking to retire, the business motivated economy has transfigured how one must live in order to live comfortably. Building credit through credit cards is often perceived to be the only way in order for a buyer to appear credible. Yet in the quest for the optimal credit score people enter into debt. Considering and evaluating the risks and benefits to credit cards may contribute to opinions towards those flimsy pieces of plastic.

     With religion playing an important role in the average Americans lives, consumerism began to grow in the white and blue-collar workers. Their families started to spend extra cash instead of saving it. Washing machines, dryers, and new cars became commonly bought items. The Homeowner who needed some extra cash, but couldn’t work enough hours to purchase that item when he needed it, started to use personal credit. This began the craze of credit cards. ”The Diner Club” introduced the first credit card in 1950: By the 1970s the ubiquitous plastic credit card had revolutionized personal and family finance”(Henretta, pg.790). The awareness of addition free time was aware

“Strapped”, an extract from a book by Tamara Draut, takes a hard look at credit card debt and the harsh implications it bears on young people throughout their lives. Young people are swamped from the very start of their adult lives and can be forced to take drastic measures just to survive. Even though they have good intentions, they have little choice but to dig themselves deeply into the hole. Crippling credit card debt has been a concerning issue for decades and is consistently worsening due to an ongoing conflict between card companies, young people, their parents, and their financial values.

James Scurlock sheds light on the fact that these credit card companies are going to do anything they can to get these kids to sign up. The companies send students a lot of advertisements for credit cards in the mail, and they will even come to college campuses and set up booths where anybody can apply for a credit card; usually using free give-a-ways as a form of bribery.

Credit cards are often used to borrow money to pay for items that they could not afford without them.The benefit of having credit cards is receiving good credit, which can lead one to have many opportunities in the future as it looks good on their resume. However, on the downside, many companies who create credit cards may take advantage of their consumers in many ways. This creates financial difficulties for Americans, which results in the need for government assistance. During 2009, President Barack Obama created a law named the 2009 Credit Card Accountability Responsibility and Disclosure Act, which restricted credit card companies in many aspects. Barack Obama’s presidential decision in limiting deceitful policies and excessive fees, made by credit card companies was a good one because it was beneficial to society in the long term by limiting corrupt companies, by protecting minors, and by restricting difficulties for consumers regarding gift cards.

The next step in credit cards was the Diners Club released by Frank X. McNamara in 1950. The idea of Diners Club came upon Frank X McNamara when he was in a restaurant in new york city, after eating dinner he realize he had no money to pay with and his wife couldn’t send him the money since she live distant. This is where he had the idea of creating an alternative way for payments. The Diners Club was primarily a travel and entertainment card made out of cardboard. At the end of each month their payment had to be paid. A year later the dinner club expanded to 20,000 americans carrying a credit cards in their pockets. Diners clubs became into a promotion, seducing the public to buy one. Their promotions were from a free field trip to all around

In today’s economy, cash or a credit card is needed to meet the basic human needs. It is an apparent fact that we need cash or credit cards to purchase items such as food, clothing, and to buy gas. Also, when you are out shopping and discover that you have used all the cash in your possession, it is then that you realize that the advantage of having a credit card. Furthermore, with cash, you are restricted to the amount in your wallet or purse; however, a credit card allows you to pay for your purchase at a later date. Both cash and credit cards can be useful when you manage them wisely. While cash and credit cards are similar in that they both are readily accessible, used for goods and services at the time of purchase, they are dissimilar because of theft, high- interest rates, identity theft.

Many people today get carried away with using their credit cards. The negative effect to this is the amount of debt that can be added up to one person. Tim Chen tells us that in 2015, the average credit card debt for a household consumer is over $16,000. Many Americans today love traveling. Cards back then were only to be used locally. In the world today, it does not matter if we are out of town or in our hometown, we are able to use our cards wherever we please. When the first card was made, and for a while after, the card could only be used locally. Woosley and Gensen also mention that the holder of the card also had to have an account at Biggins bank. If he or she did not have an account with this particular bank, they did not have a Charg-It card. The purpose for this card was to be able to buy products and pay for them later. People who did not have the money at the time of purchasing the goods he or she needed, could purchase the necessities if he or she agreed to pay for them later. The merchant would record the prices and the debts would be in a certain amount of time. The Charg-It card was a great addition to the world, but it was not the only card created at the time.

Credit cards became a severely important and reliable method of payment. Not only is it is extremely convenient but building good credit became a necessity. In 2011, credit cards were being used for over 22 billion transactions that consisted on living an average lifestyle valued at a projected 2.1 trillion dollars. Consumer involvements and outlooks toward credit cards, as revealed in user surveys, may be subjective by overall lucrative circumstances, clients who own monetary conditions; the involvements of friends, family members, and colleagues; enclose broad knowledge conveyed by media reports about the credit card market. Customers with a stable occupation and growing salaries, for example, may have