Credit Cards Britney Ouderkirk, Paige Dickins, Jesse Wiles, Trevor Carlson, Jeremiah Salisbury

History of Credit in the US Credit dates back to the age of the pilgrims, around the 1700’s People bought items when they had no money and paid payments on them when they could Most commonly they bought food on credit Began using actual Credit Cards in 1950

History of Credit Cards First one was created by Diners’ Club inc. in 1950 First made with cardboard, later made with plastic Over 1.43 Billion credit cards available today

Advantages of using credit cards Convenience - Credit cards can save you time and trouble;no searching for an ATM or keeping cash on-hand. Record Keeping - Credit card statements can help you track your expenses. Some cards even provide year- end summaries that really help out at tax time. Instant Cash - Cash advances are quick and convenient, putting cash in your hand when you need it. Perks - From frequent flier miles to discounts on automobiles, there is a program out there for everyone. Many credit card companies offer incentive programs based on the amount of purchases you make.

Disadvantages of using credit cards Overuse - Revolving credit makes it easy to spend beyond your means. Paperwork - You'll need to save your receipts and check them against your statement each month. This is a good way to ensure that you haven't been overcharged. High-Cost Fees - Your purchase will suddenly become much more expensive if you carry a balance or miss a payment. Unexpected Fees - Typically, you'll pay between 2 and 4 percent just to get the cash advance; also cash advances usually carry high interest rates.

Appropriate/Inappropriate uses of Credit Establish credit - If no credit history, your first credit card offers you the opportunity to start your credit off on the right foot. Mix of credit - By having different types of credit, you can potentially improve your credit score. Security - By not charging your card to its limit, you will have money available in case of an emergency. Extending your income - Credit cards should be used for their convenience, not to make ends meet. Having too many credit cards - Too many accounts open and too much available credit is detrimental to your credit score. Major purchases - Never put a major purchase on a traditional credit card.

Things to never charge to credit cards Mortgage Payments - If you’re low on cash one month, it might be tempting to make your mortgage payment with a credit card with a high credit limit. But, there are problems with this thinking. Cash Advances - A cash advance is a withdrawal or a short-term loan where you’re borrowing against your credit card account. If possible, avoid taking a credit card cash advance — or else you might be faced with high fees and interest rates. Medical Bills - Medical care is expensive, and paying for it with a credit card that will charge you high interest on top of this is could be a bad idea. Social Media’s Role in Credit Cards Score good deals - Card companies often reward their followers and fans with special discounts. Resolve customer service issues - According to a February 2013 J.D. Power & Associates survey, among customers who had engaged with their credit card company on social media, 71 percent had done so for service reasons such as resolving a problem or getting an answer to a question. Enter contests - Often, companies combine contests with cause marketing efforts, allowing cardholders to vote for cash to go to a favorite charity.

Use of credit cards by college aged students/young people In early 2015, a study by Student Monitor found that 23 percent of college students had a credit card in their own name Following the credit card accountability act of 2009, no credit card can be issued to anyone under 21 unless paired with the signature of another individual over 21

General tips on using credit wisely Pay attention to total monthly payments Check your credit reports regularly Pay on time and think carefully about closing cards you aren’t using Read those long policy agreements Use cards safely Maximize rewards Pay off balances strategically

Sources http://www.360financialliteracy.org/Topics/Credit-and-Debt/Credit-Cards/Advantages-and-Disadvantages-of-Credit-Cards https://www.fidelity.com/viewpoints/personal-finance/credit-cards http://www.creditcards.com/credit-card-news/student-credit-debit-prepaid-statistics.php http://budgeting.thenest.com/5-positive-uses-credit-20375.html http://www.debthelp.com/kc/263-good-and-bad-ways-use-credit.html https://getoutofdebt.org/14254/the-history-of-credit-debt-when-did-credit-as-we-know-it-arrive-in-the-u-s http://www.creditcards.com/credit-card-news/credit-cards-history-1264.php https://www.gobankingrates.com/credit-cards/10-things-should-never-put-credit-card/