Credit Card Jacob Jackson, Alivia Overmyer, Jordan Roethlisberger

History of Credit Card The use of credit cards began in the U.S. in the 1920’s, but it had originated in 1890’s Europe Early credit cards were made for the customer and direct company. Later around 1938, credit cards issued by specific companies began to be accepted by different companies (third parties) Presently, credit cards are accepted by multiple third parties (not just a select few)

Credit cards were not always plastic. In their history they were credit tokens made from metal coins, metal plates, celluloid, metal, fiber, and even paper The inventor of the first bank credit card was John Biggins of the Flatbush National Bank of Brooklyn in New York, This was the “Charge-It” program. History of Credit Cards (Cont’d)

Early Credit Forms

Advantages of using credit cards Allows you to enjoy goods now. Perhaps when your funds are low. Can shop online, make hotel reservations, etc. Shopping and traveling without carrying cash. Others will view you as a responsible person.

Disadvantages of using credit cards Credit cost money Temptation to buy more than you can afford. Buying more you can afford can cause trouble. Fail to repay a loan, you can lose your good credit reputation. If your income does not increase, you may have troubles paying bills.

Smart/Appropriate uses of credit cards Only use a credit card if you know you can pay back the amount you borrow Use credit cards only if you know that you need what you’re buying Use credit cards for purchases that can earn you points, or rewards for what you purchase Buy gas, pay at restaurants, and make reservations using your credit card Purchase groceries, gas, and food using a credit card to help build good credit

Not smart/Inappropriate uses of credit cards Don’t buy frivolously using credit cards Avoid letting an overdue balance carry over Don’t exceed your limit Don’t have multiple cards, only apply if you need it Avoid paying only the minimum payment

Media’s Role in Credit Cards The media tries to use people’s input in their commercials o They talk about other credit cards or why they like one The media tries to relate in some way to the general public to get you to say “I need that” Something that really gets the attention of the public is the cash rewards and other goodies o Receive cash and special deals on food, gas, etc. if you use the card.

They advertise what you can buy with the card and not money Fancy luxuries in commercials are what everyone dreams of MasterCard - Justin Timberlake, Peyton Manning Visa - Morgan Freeman American Express - Jerry Seinfeld, Karl Malden, Ellen DeGeneres, Tina Fey, Conan O’Brien and Tiger Woods Capital One - Alec Baldwin and Jimmy Fallon Media’s Role... (Cont’d)

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Use of Credit Cards by Students (college) Use of credit cards builds credit score o The earlier you use credit (high school/college) the better After college o Credit score is used for renting, loans, mortgages, and even jobs College students use credit for rewards o Gas and cash back on supplies purchases to make things slightly easier

Using Credit Wisely-Tips, Hints, What to do or Not to do Borrow cheaply o In the event that you cannot make the payment on time, it will be less debt risk Always pay on time o Keeping up with payments reduces finance charges (Also builds a higher credit score) Use the offers that credit cards allow to your advantage o Make big payments on huge borrowed amounts before the interest kicks in o Interest not building does not mean do not pay

If you may be unable to make a payment, let your creditor know in advance o Creditors may be lenient on their fees if informed Stay within 30% of your credit limit o Much of your credit score is determined by how much debt you have ●Build up your rewards, but watch out for strings attached ○ With rewards you can receive travel miles, movie passes, gas discounts, and even money Using Credit Wisely… (Cont’d)

●Float - Purchase something expensive and pay it in full when the bill is due ○ Find out when the billing cycle ends and make your purchase right after that date ○ The bill should not show up until the next billing ○ You could save up to two months interest free ○ Does NOT work if you already have a carrying balance ●Do not make minimum payments on debt, pay what you can ○ Creditors put you into debt longer and the overall interest increases Using Credit Wisely... (Cont’d)

●Do not use your credit card for everyday purchases ○ This can be easier to pay with, but quickly leads to debt ●Do not apply for a credit card without first reading the terms ○ Look at the fees, interest rates, and rewards ●Do not buy things you cannot afford with a credit card ○ This is the fastest way to go into debt ●Do not close credit cards without knowing the impact ○ Avoid closing cards that have a balance or that make up the majority of your credit history Using Credit Wisely... (Cont’d)

Works Cited "10 Dos and Don'ts of Using Your Credit Card." About.com Credit / Debt Management. N.p., n.d. Web. 16 Apr "Advertising." Discover Card Campaigns. N.p., n.d. Web. 16 Apr Bellis, Mary. "Who Invented Credit Cards - The History of Credit Cards." About.com Inventors. About.com, 05 Mar Web. 16 Apr Bibliography/Sources

Works Cited "Be Smart with Your Credit Card: Tips to Help You Use Your Credit Card Wisely." Financial Consumer Agency of Canada. N.p., n.d. Web. 17 Apr Detweiler, Gerri. "Credit Cards for People with Excellent Credit – Available at Credit.com." Credit.com. N.p., n.d. Web. 16 Apr PBS. PBS, n.d. Web. 16 Apr "Vaughan's First Credit Card." The Top Shelf. N.p., n.d. Web. 16 Apr Bibliography/Sources

Works Cited "The Good, the Bad, and the Ugly of Credit Cards." Home Page. Consumer Jungle, n.d. Web. 21 Apr "The 5 Biggest Dos and Don'ts of Using Credit Cards." About.com Credit / Debt Management. N.p., n.d. Web. 22 Apr Bibliography/Sources