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Credit Cards Facts

Credit Cards Facts
A credit card is a card and accompanying account that allows its owner to make purchases of various goods and services with a promise to repay the money plus interest. It is essentially a line of credit that allows the owner of the card to purchase goods and services when they don't have the money on hand. It could also be seen as a way to borrow money to be paid back over time. A charge card is different as it requires the total amount to be paid each month. Credit cards can be a good thing to have in financial emergencies but many people use them to buy items they can't afford and go into heavy debt from their abuse.
Interesting Credit Cards Facts:
There are so many credit cards in circulation that they could span a total of 86,981 miles if set side by side. Visa had 800 million in circulation in 2013. American Express had 104 million and MasterCard had 731 million in circulation in 2013.
The first retail store credit card was created in 1911 by Sears.
The Diners' Club Card was released in 1950 and could only be used in certain restaurants in New York.
When credit cards were first released it was predicted that they would only be a fad.
It costs a credit card company roughly $80 to acquire a new customer through marketing and administrative fees.
Roughly 40% of people in the United States used credit cards to pay for their basic living costs in 2012. Some use it to pay for mortgages, utilities, groceries and even insurance.
Although states in the United States have usury laws that limit the amount of interest that can be charged on a credit card, they don't apply to national banks.
Credit card companies bypass usury laws by having their headquarters located in states with very easy usury laws such as Delaware, Virginia, and South Dakota.
If someone uses another person's credit card without permission the most the card owner can be held responsible for is $50.
It is estimated that credit cards and debit cards account for 40% of all financial fraud.
Credit began when farmers had to get goods on account at the local merchants due to the seasonality of their business.
In 2013 the average household in the United States had an average of $15,191 in credit card debt.
American Express was originally a freight shipping competitor to the postal service. It was founded by Wells and Fargo.
The first bank issued credit card in the U.S. was released in 1946 by John Briggs.
Early credit cards were department store cards which meant that people could have multiple credit cards and large debts.
VISA was originally called BankAmericard, but was renamed in 1976 as VISA.
At one time credit card companies mailed cards to consumers without them having been requested. The U.S Congress started regulating the industry in the 1970s.
There are approximately 10,000 financial transactions completed with credit cards every second around the world.


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