Have you ever stood behind someone in line at the store and watched him
shuffle through a stack of what must be at least 10 credit cards?
Consumers with this many cards are still in the minority, but experts
say that the majority of U.S. citizens have at least one credit card -
and usually two or three. It's true that credit cards have become
important sources of identification - if you want to rent a car, for
example, you really need a major credit card. And used wisely, a credit
card can provide convenience and allow you to make purchases with nearly
a month to pay for them before finance charges kick in. That sounds
good, in theory. But in reality, many consumers are unable to take
advantage of these benefits because they carry a balance on their credit
card from month to month, paying finance charges that can go up to a
whopping 23 percent. Many find it hard to resist using the old "plastic"
for impulse purchases or buying things they really can't afford. The
numbers are striking: In 1999, American consumers charged about $1.2
trillion on their general-purpose credit cards.In this article we'll
look at the credit card - how it works both financially and technically
- and we'll offer tips on how to shop for a credit card. (Experts say
this should be a project on the scale of shopping for a car loan or
mortgage!). We'll also describe the different credit-card plans
available, talk about your credit history and how that might affect your
card options, and discuss how to avoid credit-card fraud - both online
and in the real world.Let's start at the beginning. A credit card is a
thin plastic card, usually 3-1/8 inches by 2-1/8 inches in size, that
contains identification information such as a signature or picture, and
authorizes the person named on it to charge purchases or services to his
account - charges for which he will be billed periodically. Today, the
information on the card is read by automated teller machines (ATMs),
store readers, and bank and Internet computers.
According to Encyclopedia Britannica, the use of credit cards originated
in the United States during the 1920s, when individual companies, such
as hotel chains and oil companies, began issuing them to customers for
purchases made at those businesses. This use increased significantly
after World War II.The first universal credit card - one that could be
used at a variety of stores and businesses - was introduced by Diners
Club, Inc., in 1950. With this system, the credit-card company charged
cardholders an annual fee and billed them on a monthly or yearly basis.
Another major universal card - "Don't leave home without it!" - was
established in 1958 by the American Express company.Later came the bank
credit-card system. Under this plan, the bank credits the account of the
merchant as sales slips are received (this means merchants are paid
quickly - something they love!) and assembles charges to be billed to
the cardholder at the end of the billing period. The cardholder, in
turn, pays the bank either the entire balance or in monthly installments
with interest (sometimes called carrying charges).The first national
bank plan was BankAmericard, which was started on a statewide basis in
1959 by the Bank of America in California. This system was licensed in
other states starting in 1966, and was renamed Visa in 1976.ther major
bank cards followed, including MasterCard, formerly Master Charge. In
order to offer expanded services, such as meals and lodging, many
smaller banks that earlier offered credit cards on a local or regional
basis formed relationships with large national or international banks.<!--
Edit from here --><p>Now is the best time to compare credit cards that
will suit your finances. </p>People are managing their finances better,
says the British Bankers' Association, or at least, it looks that way.
The reason for the BBA's opinion is the release of recent statistics
showing that credit card borrowing is continuing to fall. The figure was
down £0.5 billion over the previous period. This is encouraging,
says incoming BBA chief executive Angela Knight. BBA figures from the
major British banking groups (including Abbey, Alliance & Leicester,
Barclays, Bradford & Bingley, HBOS, HSBC Bank, Lloyds TSB, Northern
Rock and The Royal Bank of Scotland) for January 2007 show that total
lending to the UK private .... <a
href="http://www.thriftyscot.co.uk/Credit-Cards/032007/credit-card-borrowing-on-the-decline-says-bba.html">Read
More</a><br/><span style="font-weight:bold;">March 02
,2007</span></p><p><a
href="http://www.thriftyscot.co.uk/Credit-Cards/022007/chip-and-pin-passes-one-year-milestone.html">Chip
And PIN passes ilestone</a><br/>Chip and PIN has been around for just
over one year. UK payments service APACS has issued an update on the
progress of the new technology. Most businesses that accept cards have
upgraded to chip and PIN, with more than 99 per cent of all chip and PIN
transactions now being PIN-verified. More than 185 chip and PIN
transactions take place every second, compared with 125 per second a
year ago. UK banks and credit card companies have now issued 138 million
chip and PIN cards. This represents 97 per cent of the 142 million
payment cards in use in .... <a
href="http://www.thriftyscot.co.uk/Credit-Cards/022007/chip-and-pin-passes-one-year-milestone.html">Read
More</a><br/><span style="font-weight:bold;">February 23
,2007</span></p><p>A balance transfer credit card is the most popular
card on offer at the moment. With 0% balance transfer deals for 12
months becoming more common, you could save a substantial amount in
saved interest payments. Please be aware that in order to keep your 0%
balance transfer offer ongoing you are required to pay the minimum
payment to your credit card balance.</p><p>If you plan to make any
substantial purchases then a 0% credit card that offers 0% on purchases
for a limited time may be right for you. Interest is not applied to any
purchases that are made during the 0% interest free period. By using a
0% purchase credit card you could save on interest payments if you had
decided to take out a personal loan for the same period as the
introductory offer.</p><p>We all like to be rewarded for our loyalty and
this can also apply to us using our credit card. By using a cash back
credit card you will receive a percentage in cashback for every purchase
you make. This percentage can range from 0.5% right up to 3%. Then we
come to reward credit cards that pay us back with loyalty points which
can be redeemed in certain stores and outlets.</p><p>Caution should be
used when using a credit card as the ability to find yourself in serious
debt can occur. One of the biggest mistakes that can be made is by
keeping to the credit card minimum payment. This can be devastating to
your finances and should be avoided at all costs. By simply paying an
extra few pounds each month to your balance, the interest payment period
can be reduced by years.</p><!-- End Editing -->
