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The Numbers behind Credit Cards

The Numbers behind Credit Cards The idea of a credit card has existed since the late 1800s, but they really became standard in the 1950s. If you are like one of 177 million Americans, you have at least one credit card. If you're like most, you have somewhere between 3 and 5 cards. Fortunately, the number of credit cards you hold is not indicative of the amount of debt you hold. Here's a little guidance through the American credit card mire. In 1946, John Biggins introduced first credit card, known as Charg-It. Charg-It was pretty limited. Customers had to have active accounts at Big- gins' bank and they could only make purchases locally. When a purchase was made, the bill was sent to the bank, who reimbursed the vendor. Anrican Eopress Campanų In 1959, American Express, which once operated as a mail carrier and money order service, debuted the first plastic credit card. CREDIT CARD EXPIRES APRIL 30, 1959 Ase 01002730|O Past credit cards were made JOHN J SMITH 123 MAIN STREET CENTERVILLE USA of cardboard or celluloid. thnsmith ONATURENOrRANSRAE 田田 More than 75% of American house- More than 60% of these holds hold at least one credit card. have credit card debt. Nearly 90% of under- graduate students hold at least one credit card. In total, America has about One in seven Ameri- cans carry 1O credit cards or more. The average undergrad student has 4.6! About 177 million Americans, $827 billion aged 16 and older, hold 610 million credit cards. These undergrads have an average balance of $3,173. Thats roughly 3-4 cards per holder. By the time they are graduat- ing seniors, their average debt has risen to $4,100. Of those under 35, the aver- age age of their first credit card was 21 years old. in revolving credit card debt. Credit lenders report using the location of purchases, types of purchases, and mortgage lenders to make negative changes to credit accounts. FORECLOSED FORECLOSED FORECLOSED SALVATION ARMY 99¢ THE FORECLOSED FORECLOSED Spending money in casinos, pawn shops, thrift stores, and discount stores is seen as risky behavior. Owning a home in a zip code with a lot of foreclosures is another risk signal. Credit opportunities have dropped 68% in minority communities, compared to 23% in predominantly white areas. 25% of consumers do Researchers have identified a gene that may influence a per- son's credit card habits and like- not have a credit card. Of the 75% who do hold a card, only one in four pays their balance off every month. lihood to accumulate debt. A shocking 36% of card holders do not know the Individuals with a polymorphism of the MAOA gene with a lower transcriptional efficiency are remarkably more likely to have significant credit card debt. 36% interest rate of their most- frequently used credit card. Despite popular belief, your credit score is not determined solely by your credit card behavior or debt. At least new card solicitations are on the decline, even if credit card debt isn't. Payment History Outstanding Debt There are more Length of Credit than 20 factors that effect your credit score. New Credit Types of Credit Number of inquiries In 2008, 4.2 billion credit card solicitations were mailed. ...etc. .etc. Thats a sharp decline from record- 350 800 setting 2005, when more than 6 billion credit card solicitations were sent. Credit card companies charge ever-increasing fees, usually for spending beyond the limit or late fees. The credit card Industry is worth $160 billion. VISA MasterCard AMERICAN EXPRESS DISCOVER In the 1990s, the average penalty fee was around $10. Today, the typical fee is $39. Each year, they earn roughly $30 billion in profits, making it one of the most successful industries. Penalty fees and late charges earn about $20 billion annually. information provided by: CreditCardProcessing.net Sources: http://www.creditcards.com/credit-card-news/credit-cards-history-1264.php www.creditcardreform.org/pdf/credit-card-facts-stats.pdf http://www.mybudget360.com/credit-card-addicted-nation-how- americans-have-pushed-themselves-off-the-fiscal-cliff-931-billion-in-credit-card-debt-outstanding/ http://jhfowler.ucsd.edu/maoa_and_credit_card_debt.pdf http://race.change.org/blog/view/are_credit_card_companies_racial_profiling http://www.credit.com/credit_information/debt_help/Five-Shocking-Credit-Card-Debt-Statistics.jsp http://www.cardratings.com/creditcardstatistics.html http://www.advisorperspectives.com/commentaries/aci_081610.php http://www.bcsalliance.com/creditcard_profits.html http://www.nytimes.com/2009/05/19/business/19credit.html http://www.time.com/time/magazine/article/0,9171,1715293,00.html http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/CreditCardCompaniesEvilTricks.aspx?page%3D2vv

The Numbers behind Credit Cards

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Credit cards have been putting irresponsible college kids in debt since the late 1800s. The plastic card we know today didn’t really take off until the 1950s and now more than 177 million Americans ...

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