Credit Card

Jacob Jackson, Alivia Overmyer, Jordan Roethlisberger

History of Credit Card• 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)

• 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.

History of Credit Cards (Cont’d)

Early Credit Forms

Advantages of using credit cards

• 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

• 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

• 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

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

• The media tries to use people’s input in their commercialso 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 goodieso Receive cash and special deals on food, gas,

etc. if you use the card.

• 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

Media’s Role... (Cont’d)

https://www.youtube.com/watch?v=jUJhgu3A5Rwhttps://www.youtube.com/watch?v=-rVE7haSLmEhttps://www.youtube.com/watch?v=QV5V1B6gpq0

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Use of Credit Cards by Students (college)

• Use of credit cards builds credit scoreo 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 rewardso Gas and cash back on supplies purchases to

make things slightly easier

Using Credit Wisely-Tips, Hints, What to do or Not to

do• Borrow cheaply

o In the event that you cannot make the payment on time, it will be less debt risk

• Always pay on timeo Keeping up with payments reduces finance

charges (Also builds a higher credit score)• Use the offers that credit cards allow to your

advantageo Make big payments on huge borrowed amounts

before the interest kicks ino Interest not building does not mean do not pay

• If you may be unable to make a payment, let your creditor know in advanceo Creditors may be lenient on their fees if informed

• Stay within 30% of your credit limito 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

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

Using Credit Wisely... (Cont’d)

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/BeSmartw-

Utilisez.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.

Bibliography/Sources