The Credit Card - Quick History
Below is a MRR and PLR article in category Finance -> subcategory Credit.
The Credit Card: A Quick History
The widespread use of credit cards began in the 1920s, but these cards were not then the essential financial tools we recognize today.
Early Conception
The idea of the credit card was first imagined by Edward Bellamy, a fiction writer in 1887. In his book "Looking Backward," he describes a utopian future where people use a small piece of plastic to make purchases?"a concept that has since become reality. However, credit systems existed long before they became associated with plastic cards. Throughout history, credit and debt have driven significant economic and personal achievements.
Evolution in Use
Credit cards didn't become common until the 1920s. Initially, their use was limited and primarily tied to specific merchants, unlike today’s bank-linked cards. They were mostly a way to access funds while away from your bank, a function that debit cards now largely serve.
Revolving Credit
Early credit cards required full payment of balances at the end of each month. However, the introduction of revolving credit allowed for partial payments, transforming credit cards into profit centers for issuers due to the strong consumer desire to spend. Some critics argue that this ease of spending played a part in triggering the Great Depression of the 1920s.
Modern Era
Today's credit cards still rely on trust and agreement, much like their early counterparts. They represent funds rather than holding actual cash. This system has been reimagined countless times over the years. Many predict a future where all transactions are paperless, handled by credit cards, from cab fares to vending machine purchases. Credit cards have endured and evolved over time, proving their lasting significance.
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