 Credit in some form or another has been around since the late
1700’s. In the twentieth century, banks decided to offer a form of
credit protection
for themselves. Overdrafts were created to cover
account balances for when customers did not have enough in their
accounts. This obviously, became beneficial to all parties concerned in
that the bank did not lose any money because they offered their clients
extra time to pay back and the client had some room to breath whilst
they could earn some money to put into their account. Overdraft
protection is still used today.
Whilst credit was being
established, some money lenders were prepared to take new risks and
various forms of credit were introduced. In 1914 Western Union gave
their privileged customers a metal card which allowed them to have
interest free deferral payments. This soon became known as metal money
and enabled clients freedom to spend beyond their means, much as some
people do today using their credit card.
Back in those days, this
form of credit was not available to everybody as it is now, but it
didn’t take too long for other companies to become involved with the
idea of a card that actually let you pay as if you had cash. The
General Petroleum Corporation was one of the very first companies to
offer an actual credit card that allowed for fuel and automotive repair
purchases. When this card was first introduced, it was only available
to employees of the company as a “perk”. Employees could fill their
vehicle with fuel as well as getting their vechicle fixed by using
these cards, then they made payments back by using portions of their
paychecks.
These cards became so popular with the employees and
their families, the corporation decided to extend this offer to the
general public. Many other major companies then followed suit because
they too recognized that people could not afford huge prices all in one
go.
Henry Ford was a prime example of this, he was aware of the
fact that people could not afford to purchase one of his vehicles
outright, therefore before 1930, car loans and financing were
introduced and available to the public.
Credit makes things
happen for people such as, travel, nice things in their homes, nice
vehicles and it gives you the chance to have it now rather than later,
credit makes all this possible and more!
 Mark Woodcock
www.1st-directories.com
Article Source: www.EzineArticles.com
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