Credit Card Lowdown

A credit card for every need

There’s no single credit card that can be considered the best for just about anybody, mainly due to the fact that different cards suit different people according to their professions, ages, status and other demographics. Therefore before applying for any credit card, it is advisable that you do some introspection on your finances and needs.

If you’ve had a credit card in the past and less than fond memories of the experience, there is no need to shun all credit cards for the rest of your life. Yet nor is it a must that you must take another credit card.

In reality credit card companies today have come up with offers designed especially to suit those with bad credit. Just as they have tailor-made schemes for frequent-flyers, movie buffs and so on and so forth. Incentives offered by different credit cards to lure new customers include 0% interest rates, free frequent flyer miles, etc.

There’s a staggering variety of credit cards available for whatever kind of benefit you want. Some have 0% APR, no fees at all, student credit cards, to name a few. Depending on the kind of benefit you seek, you are likely to find a credit card for you. Credit card info.com reports:

The best credit cards are different for each individual. That's why before you apply for a credit card online, you really need to look at your financial situation and asses your needs. We have come to the conclusion that anyone can benefit from a credit card, so long as you choose one that offers the right things for you.

Origin of credit cards

The earliest known credit card use has been documented by Encyclopedia Britannica from the United States back in the 1920s. It was believed to be the hotel chains and oil companies who started the practice of issuing cards to customers in lieu of purchases made at their outlets. Post-World War II the practice increased at a significant rate.

Diners Club Inc is credited with the introduction of the first universal credit card which could be used at various different places of business in 1950. There was an annual fee which was billed on monthly or yearly basis. In 1958, American Express came up with their own card which was made famous with their slogan "Don’t leave home without it".

Gradually a bank credit card system followed where the account of the merchant was credited on the basis of sales slips. The charges were later billed to cardholders at the end of the billing period. The bank was paid by the card holders for the entire balance or in the form of monthly installments at a fixed rate of interest which was also referred to as carrying charges.

In 1959 BankAmericard started as the first national bank plan from the Bank of America in California on a statewide basis. Today it goes by the name of Visa. MasterCard which went by its initial name of Master Charge and other bank cards were quick to follow. Credit card info.com reports:

Let's start at the beginning. A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in size, that contains identification information such as a signature or picture, and authorizes the person named on it to charge purchases or services to his account -- charges for which he will be billed periodically. Today, the information on the card is read by automated teller machines (ATMs), store readers and bank and Internet computers.

A nation of big spenders

A survey by AC Nielsen recently put the United States at the top of the list of countries with the most consumers surving from one paycheck to another. 28% had no spare cash after making payments for living expenses.

In contrast nations like Philippines, India, Malaysia, Indonesia and Thailand had the highest rates for savings while at the same time, raking at the bottom of the list of having no spare cash.

As the richest country in the world, the United States ranks first for the highest gross domestic products ahead of 192 countries in the world. In terms of per capita, the United States is third on the list with Philippines at 107, India at 125, Mexico, 66, Indonesia 121 and Thailand 72.

Therefore being the richest country, Americans are not faced with a dearth of income opportunities. Yet most spend far too much to enjoy financial security. Credit card info.com reports:

You've heard Aesop's fable -- the one about the ant and the grasshopper.

It goes something like this: The ant spends his time industriously storing food supplies for use in the future while the grasshopper lounges around on a leaf, poking fun at the ant. The grasshopper's motto is live for today, while the ant's creed is be ready for tomorrow.