Credit Cards and their Importance to Consumers and Society
Credit cards play a vital role in America’s economy and personal finances. These small plastic cards help people to make large purchases and to build up a trackable payment history that can be used for loans and other financial transactions. The following material will highlight the benefits that credit cards provide and how they can help consumers to be successful in life.
The concept of the credit card was around since the late 1800s. However, they were not being issued until the 1920s. Major companies would provide wealthy members of society with a small line of credit, so they could purchase their products and then pay them off later. During the early part of the 20th century credit cards were not that popular.
A banker by the name of John Biggings created a dinner card that could be used at restaurants. This card was issued in the 40s. Banking institutions and financial companies eventually upgraded this type of credit card, so it could be used for a variety of purchases. This is the kind of credit card that people use today. You can also use credit cards Minneapolis MN for this purpose.
As credit evolved, companies began to see its benefit. First, let’s start with the housing industry. Lenders look at people’s credit card score and history to help determine if they would be a good candidate for a loan. Credit Karma states that consumers who pay off their credit card bill on time and do so consistently will usually get a better rating than those who don’t. Using credit wisely will help a person to get a house.
Good credit will also help a person to get transportation as well. Once again, an auto lender will run your credit to determine if a person is a good candidate for an auto loan. Ultimately, it pays to keep your credit in good shape. Remember, most people just do not have the money or resources to purchase large items such as a house or a brand-new car all at once. This is another reason why credit is very essential.
Another benefit that credit cards provide is their ability to keep food on the table and the bills paid. It is a known fact that people are struggling in today’s society to maintain their household. People work, and many families have two-income earners; but that sometimes is not enough for people to stay afloat financially. According to creditcards.com, many consumers must use their credit to purchase food items or to pay their utilities. People who can consistently use their credit card in this way and constantly pay off their bill will be able to maintain a healthy credit rating.
Credit cards are also needed to make reservations, to rent cars and for personal loans. Having a credit card will make easier for a person to get things they will need to survive. People who take vacations will benefit from the use of a credit card and consumers who fly will find it easier to get tickets with a credit card. In other words, credit makes it easier for people to thrive economically and to make purchases with less hassles and problems.