Some Interesting Facts About Credit Card

July 18, 2008

These interesting facts about Credit Card can make you go Hmmmm… it covers a number of useful consumer information that may one day come in handy in your daily life.

  • Wonder why minimum payments are so low? It allows consumer to carry more debt while keeping to the same low minimum payment. You can give someone with the ability to pay $100 per month a credit limit as high as $5,000 if they only had to pay 2% a month. If the minimum payment were 5%, they could only have a credit limit of $2,000. The lower the minimum payment, the deeper in debt someone could be in.
  • In United States, there are over 1.52 Billion Credit Cards in use.
  • In the beginning, credit cards were just charge accounts, offered by individual stores and only usable at those stores. The first credit card that could be used at multiple locations was offered by The Diner’s Club in 1950
  • Late library fines and unpaid parking tickets can hurt your credit score.
  • At least one in 10 consumers has more than 10 credit cards in their wallets. That’s equal to 304 tons of plastic or 61 Elephants.
  • You can lower your interest rate with a phone call. Credit card companies are like cell phone and cable companies, they’re afraid you’ll leave and join with one of their competitors. Use this to your advantage by comparing offers from other credit cards and bringing this information to your credit company.
  • All though the first credit cards were merchant specific cards starting in 1900 with several hotels, the first true credit card was invented in 1950 by Ralph Schneider and Frank X. McNamara. The Diners Club charged participating restaurants 7% interest on each purchase and charged a $3 fee a year to the card holder. This was the first card that could be used at different locations. Chase and Bank of America (Visa) came out with their first credit cards in 1958. They became most popular when the magnetic strip became available in 1970.
  • A fixed interest rate on a credit card can change with only 15 days of notice. Fixed is not fixed in the sense that a mortgage loan is fixed, it’s fixed in the sense that the credit card company can change it with only 15 days notice.
  • There is no federal law regulating the rate of interest a credit card company can charge! The federal government use to regulate but repealed those laws during the Great Depression and never put them back in place, they now rely on the states to handle usury.

Albert Einstein was once asked what he felt was mankind’s greatest invention….His answer…“compound interest”…..

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