credit card history

History of the credit card: how it was born and its evolution

Credit cards are an excellent payment element, as long as we use them well. Otherwise, the debt generated by a credit card becomes heavy to pay. A loan may have to be used to pay off the debts they generate. But the history of credit cards has made us see how it became a convenient payment system; and also in obtaining cash.

The credit card in history

In classical Greece, more than 2,000 years ago, a primordial species or credit card was already used. It was a letter of payment, or guarantee, it was used to check the finances of people who wanted to buy land, boats or more properties and slaves, they could face that future payment by being a reliable and upright person. In short, that he had an adequate financial record.

We will have to go until 1914, when the Western Union company issued what is the first credit card, which was provided to its special customers. It allowed a line of credit without cost and a more special treatment. Does it sound familiar? Ten years later, the General Petroleum Corporation uses the same strategy to purchase fuel at its facilities.

In 1949 an event took place that gave rise to the credit card as we know it. Three businessmen dine in New York, specifically at Major's Cabin Grill , and one of them, Frank X. McNamara, he has forgotten his wallet at home, so his wife has to take it with him. The rush that happens is important, and between the 3 they think of a way that this does not happen again. Mc Namara, Ralph Sneider and Alfred Bllomingale set up the famous Diners Club a year later .

The wick is lit

Although it was not very successful at first, only 14 restaurants in New York accepted it, by the end of 1950 the jump had been exponential. Starting a story that has no end. 1958 was the year of birth of VISA and American Express . Credit cards began their expansion, as possessing one was, and still is, a symbol of solvency and status. It allows us to have money that we do not have for cash or purchases, since the bank is the one that guarantees our solvency.

1979 is the year of the arrival of MasterCard, and since then, it is one of the favorite means of payment. The credit card is in good health, get the number of them and associated operations does not stop growing globally. Contactless technologies, as well as payments by mobile phone, virtual cards or smartwatch are realities that have given further impetus to the popularization of these technologies.

And in Nigeria?

The credit card arrived in Nigeria on a regular basis in 1978. The first was issued by the Banco de Bilbao, and was in the name of Carlos Donis de León. Currently, and after the boom of the 80s, more than 70 percent of Spaniards have one. We are, after the United Kingdom, the second country in Europe in terms of the number of credit card issues.

All banks and savings banks, as well as credit institutions, issue their own credit cards. Paying with them is an advantage as long as they are used wisely and wisely. If not, the amount of the debt may not stop growing and make it difficult to pay. It is always convenient to know the interest they have and choose the one that best suits our way of buying.

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