Credit cards are one of the most important inventions in modern times. They make it easy to buy things you want when you want them, and they also help to build credit so that you can get loans for larger purchases. So if you have a credit card, you should also know some background about how they became such an integral part of the world.
Credit cards were invented in the 1950s.
If you are wondering when was the credit card invented, it was in the 1950s. A man named Frank McNamara came up with the idea for them, and he was a frequent diner at a restaurant called Major’s Cabin Grill. He had trouble carrying enough cash on him to pay for all of his meals, so he asked the owner if it would be okay if he could make multiple payments over time instead of paying everything upfront.
According to SoFi, “Credit card history can be traced back to 1914, when Western Union rolled out the idea of “Metal Money,” which was granted to a handful of customers and allowed them to push back payment until a later date.”
The restaurant agreed, and McNamara went home to create an actual credit card that he could use in this way (and eventually across other industries). It wasn’t until later that people started using their cards as often as they do today. So it wasn’t until 1961 when John F Kennedy ordered his first pair!
The first credit card was used at a gas station.
The first credit card was used in New York City at a gas station. The man who received the first credit card was Frank McNamara, who received it just two years after the invention of the magnetic strip. At this time, it wasn’t called a “credit card” but simply “electric money.” Despite being called electric money, most people assumed that no one would ever actually use it—after all, why would they need to? They had been invented because cash registers were getting too heavy and couldn’t handle all of their coins anymore.
The magnetic strip on credit cards is not a security feature.
If you have a credit card, chances are you’ve noticed the magnetic strip on the back. If you’ve ever wondered what that black strip of plastic does, here’s your answer: not much! The magnetic strip is designed to be used with a credit card reader. When swiped through an electronic reader, it records information about your purchase. It uses this information to verify that the card is authentic and hasn’t been copied or duplicated.
It’s best to take out cash from an ATM with a debit card versus a credit card unless you have a credit card with no foreign transaction fee.
Debit cards are linked directly to your bank account; they don’t involve any interest or fees associated with borrowing money. Credit cards, on the other hand, allow you to make purchases that exceed what is currently in your bank account at any given time—and this can lead to some pretty hefty interest payments if not paid off immediately.
It’s essential to know these things if you want to use your credit cards responsibly.
Remember: never charge more than you can pay back, keep track of your spending and expenses, and don’t let yourself get in over your head with debt!
