A Tale Of Credits

It is said that everything in life comes a full circle

. That is so true in every facet of life, including the most important of all- one that we call money. Money has assumed many forms through centuries, for eg. silk, stone money, iron nails and finally, we have arrived at plastic money. The new age credit card has become everybodys best friend what with all the advantages that it provides for the fast paced life today. Then where is the circle that I mentioned?

Evolution Of Credit

It is interesting to know that the concept of credit existed three thousand years ago. It was used in Assyria, Babylon and Egypt. The first announcement for credit was cited in 1730 by a gentleman called Christopher Thornton who offered furniture that could be paid off for on a weekly basis. The trend caught on and extended to clothes.

From eighteenth to the beginning of twentieth century, tallymen sold clothes for little weekly payments for which they maintained a record or tally on a wooden stick. One side of the stick had the record of the amount of debt and the other side the payment record.

Buy now, pay later system began in the United States of America in the 1920s. 1950s saw the launch of the current form of plastic money by Diners Club and American Express. Its wide spread popularity happened with the use of magnetic strip on the credit card. The London Transit Authority installed the first magnetic stripe system in 1960s. So here is the circle that I mentioned right in the beginning. What we thought is a new age invention has actually been there from much before our time.

The Scenario Today

The current system allows people to borrow from credit card companies of networks like Visa, Master Card, etc. to make purchases. The amount can be paid off in installments every month. There is hardly any individual today who does not own at least one credit card. Let us have a glimpse of some of the benefits of using plastic money:

One need not carry cash yet make purchases of desire with the use of these cards.

The monthly installments can be designed as per ones own comfort level.

Payment can be withheld for merchandise that is flawed under some circumstances.

Short-term borrowing is economical. Interest is charged on the balance that has to be paid off.

Competition is making credit card companies adopt strategies like additional insurance cover, cash back, mileage for air travel, discounted holidays, etc. which is a great advantage for users.

So many perks obviously mean a rise of the purchasing power, both out of necessity and desire. The invention of credit card has certainly left us with lighter wallets, pun intended.

by: AlenCaller

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