Credit Of Some Form

Credit in some form or another has been around since the late 1700’s. In the twentieth century, banks decided to offer a form of credit protection for themselves. Overdrafts were created to cover account balances for when customers did not have enough in their accounts. This obviously, became beneficial to all parties concerned in that the bank did not lose any money because they offered their clients extra time to pay back and the client had some room to breath whilst they could earn some money to put into their account. Overdraft protection is still used today.

Whilst credit was being established, some money lenders were prepared to take new risks and various forms of credit were introduced. In 1914 Western Union gave their privileged customers a metal card which allowed them to have interest free deferral payments. This soon became known as metal money and enabled clients freedom to spend beyond their means, much as some people do today using their credit card.

Back in those days, this form of credit was not available to everybody as it is now, but it didn’t take too long for other companies to become involved with the idea of a card that actually let you pay as if you had cash. The General Petroleum Corporation was one of the very first companies to offer an actual credit card that allowed for fuel and automotive repair purchases. When this card was first introduced, it was only available to employees of the company as a “perk”. Employees could fill their vehicle with fuel as well as getting their vechicle fixed by using these cards, then they made payments back by using portions of their paychecks.

These cards became so popular with the employees and their families, the corporation decided to extend this offer to the general public. Many other major companies then followed suit because they too recognized that people could not afford huge prices all in one go.

Henry Ford was a prime example of this, he was aware of the fact that people could not afford to purchase one of his vehicles outright, therefore before 1930, car loans and financing were introduced and available to the public.

Credit makes things happen for people such as, travel, nice things in their homes, nice vehicles and it gives you the chance to have it now rather than later, credit makes all this possible and more!

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