Credit Cards
Credit cards have become one of the most commonly used means for daily financial activities. They are used for everything from buying breakfast, to getting gas, to paying the power bill. Some people use them for the rewards and others for a stream of cash until the next paycheck. While some people pay the balance off monthly, many more have some significant amount of debt from one or more credit cards. In fact, the average credit card debt per U.S. adult, excluding store and zero balance credit cards is $4,878. Recently, the amount of credit card users soared to around 77 percent of adults, making the number of credit card holders higher than the number of individuals with vehicles. And it is not just one card per holder, the average person has 3.75 cards per credit card holder. Credit cards have truly become a necessity in many adults’ lives. Since 1958, when first credit card was issued for general use, the amount of users has climbed. This card allowed user to pay their balance over a period of time and was called the BankAmeriCard until 1977, when the name was officially changed to Visa. Since then, major credit card companies such as Visa, MasterCard, Discover and American Express have been doing everything they can to draw in users. Consumers are drawn to the convenience that comes along with holding a card. This can be anything from easy record keeping, to building credit, to security. The concept of lending money through a card or can be traced all the way back to the 19th century. In the earlier days, department stores were known for awarding their most valued customers with a form of credit printed onto an identification card. Shortly after the Visa card was officially released, a network of bank owners created the credit card that we know today as MasterCard. MasterCard’s arrival was due largely to the amount of success that Visa was having. Following shortly after, the other major credit card companies started to pop up. As the popularity rose, the
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