It was Edward Bellamy who introduced the concept of the card usage to make purchases. The words Credit Card had been mentioned in his novel Looking Backward eleven times, and in the book's sequel named Equality three times.
During the 1950s, Ralph Schneider and Frank Mcnamara invented the notion of making payments to merchants using a card. This gave rise to the foundation and opening of the Diner Club, which is still in existence and operation today.
This had been followed by the opening of Carte Blanche, American Express, and Bank of America's introduction of the Visa Card.
It continuously evolved until it reached its recent form of using the plastic card that is most commonly known as the Credit Card.
The use of credit cards has its own pros and cons.
Below are some of the advantages:
1. Minimizes risk of loosing cash. The consumers need only to bring and present the plastic card to make transactions or purchases.
2. Convenience. Purchases that immediately needs to be made may be possible with the use of credit cards even if the individual is low in cash since all that would be looked at is the credit limit available.
Some of the disadvantages are:
1. This could result to accumulation of debt if the main and interest charges are not settled until its due dates.
2. It could be very tempting to make purchases that are really not quite necessary.
It had always been noted that the rampant use of the credit card system had resulted to the Great Depression of the 1920s.
With the sudden rise of automobiles available for purchase by the consumers during the said period, there had been an equal increase in the demand for fuel.
So as not to loose consumers, most fuel companies extended credit to their consumers to attract more buyers to increase sales.
This gave birth to the introduction and use of Gas Credit Cards.
Gas Credit Cards are somewhat similar with credit cards, but is limited to the use of purchasing of gasoline.
Cardholders of said cards are usually given rebates in the form of cash back check or by giving them a credit for their existing balance.
The following are some of the best offers by some gas credit cards:
1. Awarding of 5% Cashback Bonus upon purchase of gas or 1% for any other purchase
2. 3-9% rebate on all gas purchases that are made on any gas station during the first 90 days.
3. Free gas offers when a certain amount had been charged on the card.
4. Gas credit cards that have annual fees usually offer a lower interest rate for purchases that are charged to it.
A consumer may want to choose these types of cards if they have limited means to immediately pay the card balance so as to minimize interest accumulation.
5. Some gas stations offer discounts to consumers using their particular card
6. As compared to regular credit cards, gas credit cards offer a much lower interest rate for gas purchases, thus making it a wise decision to have one of this if the consumer is usually traveling using his or her own vehicle.
Still, it all depends on the consumer to use his or her card wisely for his or her own benefit.
Choosing the right credit card that is most suitable for your needs will take a little work, but it certainly will prove to be worthwhile in the long run. Whether you want it so that you don't have to carry cash with you, or you are a businessperson who is looking to have an accurate record of all business-related expenses, there will usually be one card that is a little more beneficial to your situation than others. Here are some things to look for to help you get that perfect credit card.
Determine Your Primary Use of The Credit Card
Probably the most important question to ask up front is what do you want to use your credit card for most? This should largely determine what kind of card you need to look for. For instance, if you are in business for yourself, or if you travel a lot for your business, then there are a couple of cards that will really help you save some money.
If you fly a lot, then go for a credit card that will give you a lot of air miles up front, and will also give you a lot of options that you can use the points for. It should also have an option of allowing your points to be used for hotel rooms and possibly car rentals.
If you drive a lot, then go for a gas card that gives you rebates on your gasoline, and make sure your points can go toward car rentals, or towards a new car. There are also business credit cards that will not only help you with these things, but will also allow you to use your points toward the purchase of new office equipment and other similar things that every business needs.
On the other hand, if you are a student, or a mother just wanting to use it for more simple expenditures, like gas, food, prescriptions, and some pizza money, then you just want a regular card that will reward you for these type of expenditures. On these items, you can expect to get up to 3% rebate, possibly more on other types of purchases. Many cards may only give you 1% of a rebate, but by looking around, you can get the 3%.
Needs For Debt Consolidation?
If you have found yourself getting in debt pretty deeply from credit cards, then you can use a new credit card to actually help you eliminate some of the debt. Here's how. Get a 0% APR interest credit card that will give you the opportunity to have balances transferred to it - but make sure that there is not any balance transfer fees.
Many credit cards have these fees, but there are just as many that do not have them. Why pay for it when you can get this option for free from someone else? You also want to be sure that the introductory benefits last for at least one year - some only last for three months. Then, if you still have debt on this card, be sure to get yourself another card before the year expires, and give yourself another year of 0% APR interest on it.
Getting The Most Benefits From Your Credit Card
No matter what benefits you have attached to your credit card, you will not enjoy much of them unless you do two things. The first thing that you need to be sure to do is to pay your credit card bills on time so that you do not pay the monthly late fees. Being late even once with some credit card companies is all the excuse they need to charge you the full amount of interest - from that point on. A second thing is to pay off the bill in full each month - in order to avoid the interest charges ? after the introductory period expires.
Establish A Good Credit Rating
With something as simple as too much debt owed on a credit card, many people have wiped out the possibility of buying some of the bigger items they may really want - like that nice house that they have dreamed of for so long. The best credit card will also help you to build up, maintain, or repair your credit rating, too - if it is used wisely.
Both Aaron Ballantyne & Joe Kenny are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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