A credit card, as you might know has individual information like your signature and often your photograph as well. The credit card perhaps, is one of the best identification you can offer as it is often on your person always. With a credit card in hand, you can use it to make purchases, pay bills on services and the consumer is charged periodically based on the purchases made. The details of a card, the balance and payment schedules and statements can be viewed over an automated teller machine ? ATM and on Internet computers as well.

According to sources, the credit card was first born in the United States way back in the 1920s. It was issued mainly by hotels, oil companies and certain stand-alone companies. This credit card could then be used at those specific establishments and those connected with them. Post World War II, the credit card found it growing and it was found to be very useful.

The first credit card that could be used at a number of stores was brought to the market by Diners Club in 1950. This enabled the consumers to make their purchases and they only had to pay an annual fee and then pay back the amount purchased on a monthly basis or even a yearly basis. It was in 1958 that the American Express card came into the market, the other big player in the credit card market even to this day. This too worked in a similar fashion.

It was only later that banks got into this business and came out with a bank credit card. This way, the bank would pay the store as and when a consumer would make a purchase, which satisfied the business house totally (credit being their bane) and the consumer would be presented with a bill on a regular basis. The consumer in turn, has the option of paying back the bank the entire amount or even part of it. He returns the rest of the amount with an interest charged to it ? what is called a carrying charge.

Did you know that the first national bank to introduce a credit card was the Bank of America with its BankAmericard in 1959? This could only be used in California initially, though by 1966, it could be used in more states across the country. In 1976 it was renamed Visa ? as it stands today and is now accepted worldwide across establishments. MasterCard too came into being and they tied up with several smaller banks to enable consumers to make purchases at various stores and business houses. Visa and MasterCard, today and big names and are connected with small banks, international banks and large national banks as well as they issue credit cards to consumers worldwide.