You Think You Know, but You Have No Idea...of Some Credit Card Deal Facts

December 07, 2007

Credit consumers these days are flooded with enormous information flow on credit cards, their wise use, tips on avoiding credit card traps and so on. In general, all credit-related advisory services are consumer oriented. And that is quite clear, as a credit card itself is a tool that has been designed for practical use in order to make our life more convenient. But actually, there are some other more interesting issues about credit cards you might want to learn.

The information given below is devoted to curious credit card holders, who are always ready to discover something new and go beyond traditional knowledge. So, here are some fascinating facts about credit cards you, probably, had no idea of.

The word "credit" has a Latin origin; it can be interpreted as "trust".

The first credit was issued about 3,000 years ago in Egypt and Babylon.

In 1730 a furniture merchant, Christopher Thompson, advertised credit for the first time in history. He offered his customers to buy furniture and spread the cost for several months making weekly payments.

From the XVIII to the beginning of the XX century tallymen had been selling cloths. They accepted weekly payments and kept "credit records" called "tallies". The word "tallyman" is an archaism. In present-day language we call such people creditors.

In 1950 American Express having teamed up with Diners Club issued the first credit cards. Only 200 privileged customers could get those cards.

With the invention of magnetic stripe in the early 1960's credit cards started their worldwide crusade.

By 1970, according to statistics, 51% of Americans became credit card owners. These days the amount of people who have made credit card deals makes up 93%.

Over 1.2 billion plastics are in use in the US today. About 37% of all your personal spendings are paid with debit and credit cards.

The average US credit consumer owes about $ 14,500 on their credit cards, not taking into account mortgage debt. While every American's average share of the country's national debt equals to $ 30, 000. The outstanding public debt in December, 2007 amounts to $ 9 trillion, even more.

About 40% of American families spend more than they earn every year. The average American families pay about $ 1, 560 on credit card interest. Paying for food and rent are the major reasons to get a credit in the US.

14, 37% - that is the average APR at present moment. Since the beginning of 2006 it has increased by almost 2%. Doesn't look that threatening? $ 43 billion is the amount of money credit card companies made on card fees this year. That looks much more impressive? Huh?

And it is a bit over $ 90 billion earned by credit card companies in interest last year. Having seen this figure, you, probably start believing that America will definitely cope with its public debt.

The first rewards program was cash back. It has been introduced by Discover.

And one more fact that will be of practical use for you. Do you know how to define whether your card is valid or not? Your credit card number is the answer. You just need to check it. Starting from the right you double each second digit, like 2222 becomes 4242. Then you add them all together. The number you will get should be even divisible by ten. If the math works, your credit card is all right, if not - your plastic is invalid.

So, these are just a few interesting credit card facts you can put into your storehouse of knowledge right away. Some day you can enlighten your friends on credit cards-related curious facts.