When Were Credit Cards First Issued?

The History of Credit Cards: When Were They First Issued?

Credit cards have become an essential part of modern life, but have you ever wondered when they werefirst issued? The answer might surprise you. Credit cards were first issued in the United States in the early 1920s, but they were not widely accepted until several decades later.

Early Credit Cards: Charge Plates and Department Store Cards

The firstcredit cardswere called charge plates, and they were used by individual merchants to extend credit to their customers. These early credit cards were made of metal and were issued by department stores and oil companies. They were not widely accepted, and each store had its own charge plate, which could only be used at that particular store.

Department store cards were another early form of credit card. These cards were similar to charge plates but were specific to a particular department store. They were first introduced in the 1920s and were often used to finance purchases of large items like furniture and appliances.

The Rise of Bank-Issued Credit Cards

Bank-issued credit cards, as we know them today, were first introduced in the 1950s. The first bank-issued credit card was the Diners Club card, which was introduced in 1950. This card was primarily used by business travelers to pay for meals and other expenses while on the road.

American Express introduced its first credit card in 1958. This card was similar to the Diners Club card but was targeted at a broader audience. American Express also offered a revolving credit option, which allowed cardholders to carry a balance from month to month.

The Birth of the Modern Credit Card Industry

In 1966, Bank of America introduced the first general-purpose credit card, called the BankAmericard. This card was eventually renamed Visa. Mastercard was introduced in 1967 as a competitor to Visa.

The introduction of Visa and Mastercard marked the birth of themodern credit card industry. These cards were widely accepted by merchants and were used by consumers for a wide range of purchases. They also paved the way for the development of other credit card products, such asrewards cardsand cashback cards.

Applying for a Credit Card: Tips and Tricks

If you're interested in applying for a credit card, there are a few things to keep in mind. First, make sure you choose a card that fits your needs. If you travel frequently, a travel rewards card might be a good choice. If you're looking to save money on interest, a low-interest card might be a better option.

It's also important to read the fine print before you apply for a credit card. Make sure you understand the card's fees, interest rates, and rewards program. Pay attention to any introductory offers, as these can be a great way to save money in the short term.

Finally, it's important to use your credit card responsibly. This means paying your balance in full each month, avoiding cash advances, and not using your card to finance purchases you can't afford.

In conclusion, credit cards have come a long way since their humble beginnings as charge plates and department store cards. Today, credit cards are an essential part of modern life, offering convenience and rewards to millions of consumers around the world. By choosing the right card and using it responsibly, you can take advantage of all the benefits that credit cards have to offer.