First Credit

Many banks and retailers were quick to catch on in the early 1950’s as the Diners Club Card was exploding onto the public market. In 1950, Franklin National Bank began to offer approval on credit purchases which secured the retailer financially.

In 1958 the introduction of the American Express card took place and this credit card is still used by many today. It was the bank of America that revolutionized the credit industry, they were the first to offer the option to pay your balance in full at the end of the month, or make smaller payments towards your balance, along with an interest fee on the remaining balance.

This method gave purchasers many more options, just as with today's credit cards, because they no longer had to come up with the full amount each month. Therefore if they spent more than they should have, they could be comforted in the fact that they only had to pay a portion back. In this arrangement the lender was also very happy, because they could earn money on the balance owing.

The system of credit cards was created some fifty years ago, but it’s a system that is still thriving and well used into todays lifestyles.

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