RR175 Topic: Credit Cards, Inception, Interest and in general.
I find myself back in the hospitality industry and am reminded of how we tend to pay for food and drink.
I remember the days of Master Charge and Bank Americard
Bank Americard (from Bank of America nka Visa) inception date was 1958. It had a paper consumer credit card with a $300 limit.
In 1975 the first debit card had its debut.
1975 Bank Americard changes names to Visa because it sounds the same in every language. After going global it’s important that name makes sense to everyone I suppose.
1996 Financial literacy training was launched. Likely because folks were getting themselves in trouble paying with plastic.
2008 IPO the largest one in history
MasterCard fka MasterCharge is in my opinion the little guy trying to keep up
American Express was historically and may still be the cool kid on the block credit card. Because it is inferred that to carry this card you must be financially secure enough to pay it off every month. Then they came up with American Express Blue; the revolving line of credit. With an unbelievable 26% APR
Speaking of unbelievable the AmEx black card is by invitation only and the annual fee is $2500.
AmEx Green is $95 per year and 20% interest with the payment option.
Fees to use credit include the annual fee and the interest rate.
Yes, credit card can come in handy but they are the sweets of the financial world nice to have as well as satisfying but can get us into a heap of trouble.
Apparently credit cards are exempt from adhering to usury laws. But usury laws are not the greatest either because some lenders can charge 36% interest. Payday loan outlets can charge as much as 500% according to one article.
This is part of the reason we need to be sure to understand the ramifications of using credit for purchases.
Research and Links:
https://usa.visa.com/about-visa/our_business/history-of-visa.html
https://www.businessinsider.com/history-of-credit-cards-2015-2
https://www.investopedia.com/terms/u/usury-laws.asp
https://en.wikipedia.org/wiki/Usury
https://wallethub.com/edu/cc/usury-laws/25568/
https://www.daveramsey.com/
https://americansforfairnessinlending.wordpress.com/the-history-of-usury/
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