Credit Card
Jacob Jackson, Alivia Overmyer, Jordan
Roethlisberger
History of Credit Card
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The use of credit cards began in the U.S. in the 1920’s,
but it had originated in 1890’s Europe
Early credit cards were made for the customer and
direct company.
Later around 1938, credit cards issued by specific
companies began to be accepted by different
companies (third parties)
Presently, credit cards are accepted by multiple third
parties (not just a select few)
History of Credit Cards (Cont’d)
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Credit cards were not always plastic. In
their history they were credit tokens made
from metal coins, metal plates, celluloid,
metal, fiber, and even paper
The inventor of the first bank credit card
was John Biggins of the Flatbush National
Bank of Brooklyn in New York, 1946. This
was the “Charge-It” program.
Early Credit Forms
Advantages of using credit cards
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Allows you to enjoy goods now.
Perhaps when your funds are low.
Can shop online, make hotel reservations, etc.
Shopping and traveling without carrying cash.
Others will view you as a responsible person.
Disadvantages of using credit
cards
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Credit cost money
Temptation to buy more than you can afford.
Buying more you can afford can cause trouble.
Fail to repay a loan, you can lose your good
credit reputation.
If your income does not increase, you may
have troubles paying bills.
Smart/Appropriate uses of
credit cards
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Only use a credit card if you know you can pay back the
amount you borrow
Use credit cards only if you know that you need what you’re
buying
Use credit cards for purchases that can earn you points, or
rewards for what you purchase
Buy gas, pay at restaurants, and make reservations using
your credit card
Purchase groceries, gas, and food using a credit card to
help build good credit
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Not smart/Inappropriate uses of
credit cards
Don’t buy frivolously using credit cards
Avoid letting an overdue balance carry over
Don’t exceed your limit
Don’t have multiple cards, only apply if you
need it
Avoid paying only the minimum payment
Media’s Role in Credit Cards
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The media tries to use people’s input in their
commercials
o They talk about other credit cards or why they like
one
The media tries to relate in some way to the general
public to get you to say “I need that”
Something that really gets the attention of the public
is the cash rewards and other goodies
o Receive cash and special deals on food, gas, etc. if
you use the card.
Media’s Role... (Cont’d)
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They advertise what you can buy with the card and not
money
Fancy luxuries in commercials are what everyone
dreams of
MasterCard - Justin Timberlake, Peyton Manning
Visa - Morgan Freeman
American Express - Jerry Seinfeld, Karl Malden, Ellen
DeGeneres, Tina Fey, Conan O’Brien and Tiger Woods
Capital One - Alec Baldwin and Jimmy Fallon
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https://www.youtube.com/watch?v=jUJhgu3A5Rw
https://www.youtube.com/watch?v=-rVE7haSLmE
https://www.youtube.com/watch?v=QV5V1B6gpq0
Use of Credit Cards by Students
(college)
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Use of credit cards builds credit score
o The earlier you use credit (high school/college) the
better
After college
o Credit score is used for renting, loans, mortgages,
and even jobs
College students use credit for rewards
o Gas and cash back on supplies purchases to make
things slightly easier
Using Credit Wisely-Tips, Hints,
What to do or Not to do
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Borrow cheaply
o In the event that you cannot make the payment on
time, it will be less debt risk
Always pay on time
o Keeping up with payments reduces finance charges (Also
builds a higher credit score)
Use the offers that credit cards allow to your advantage
o Make big payments on huge borrowed amounts before
the interest kicks in
o Interest not building does not mean do not pay
Using Credit Wisely… (Cont’d)
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If you may be unable to make a payment, let your creditor
know in advance
o Creditors may be lenient on their fees if informed
Stay within 30% of your credit limit
o Much of your credit score is determined by how much
debt you have
● Build up your rewards, but watch out for strings attached
○ With rewards you can receive travel miles, movie
passes, gas discounts, and even money
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Using Credit Wisely... (Cont’d)
● Float - Purchase something expensive and pay it in full
when the bill is due
○ Find out when the billing cycle ends and make your
purchase right after that date
○ The bill should not show up until the next billing
○ You could save up to two months interest free
○ Does NOT work if you already have a carrying balance
● Do not make minimum payments on debt, pay what you can
○ Creditors put you into debt longer and the overall
interest increases
Using Credit Wisely... (Cont’d)
● Do not use your credit card for everyday purchases
○ This can be easier to pay with, but quickly leads to debt
● Do not apply for a credit card without first reading the
terms
○ Look at the fees, interest rates, and rewards
● Do not buy things you cannot afford with a credit card
○ This is the fastest way to go into debt
● Do not close credit cards without knowing the impact
○ Avoid closing cards that have a balance or that make up
the majority of your credit history
Bibliography/Sources
Works Cited
"10 Dos and Don'ts of Using Your Credit Card." About.com Credit / Debt Management. N.p., n.d. Web. 16 Apr. 2014.
<http://credit.about.com/od/creditcardbasics/a/dosandonts.htm>.
"Advertising." Discover Card Campaigns. N.p., n.d. Web. 16 Apr. 2014.
<https://www.discover.com/company/our-company/advertising/>.
Bellis, Mary. "Who Invented Credit Cards - The History of Credit Cards." About.com Inventors. About.com, 05 Mar. 2014.
Web. 16 Apr. 2014.
<http://inventors.about.com/od/cstartinventions/a/credit_cards.htm>.
Bibliography/Sources
Works Cited
"Be Smart with Your Credit Card: Tips to Help You Use Your Credit Card Wisely." Financial Consumer Agency of Canada.
N.p., n.d. Web. 17 Apr. 2014. <http://www.fcac-acfc.gc.ca/eng/resources/publications/creditCards/Pages/BeSmartwUtilisez.aspx>.
Detweiler, Gerri. "Credit Cards for People with Excellent Credit – Available at Credit.com." Credit.com. N.p., n.d. Web. 16
Apr. 2014. <http://www.credit.com/credit-cards/six-smart-credit-card-strategies/>.
PBS. PBS, n.d. Web. 16 Apr. 2014.
<http://www.pbs.org/wgbh/pages/frontline/shows/credit/more/rise.html>.
"Vaughan's First Credit Card." The Top Shelf. N.p., n.d. Web. 16 Apr. 2014.
<http://utsalibrariestopshelf.wordpress.com/2009/08/10/vaughans-first-credit-card/>.
Bibliography/Sources
Works Cited
"The Good, the Bad, and the Ugly of Credit Cards." Home Page. Consumer Jungle, n.d. Web. 21 Apr. 2014.
"The 5 Biggest Dos and Don'ts of Using Credit Cards." About.com Credit / Debt Management. N.p., n.d. Web. 22 Apr. 2014.