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What are the reasons behind the credit card popularity?


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2009-11-15 23:22:22
2009-11-15 23:22:22

Credit cards allow you a safe and convenient way to borrow against your line of credit often freeing people from the burden and risk of carry cash on their person (I hate pennies). They allow you to borrow money and spend it in practically any major vendor here and overseas, and allow you to make payments securely over the internet. They also build you line of credit if used responsibly.

Ultimately I think the popularity comes from people's perception that they can spend money without worrying about the consequence until later. American banks now rely to a large degree depend on revenues from credit cards, and aggressively push credit cards in a way that reinforce people's misperception that they can spend without consequence. They often offer you 0% interest for a limited period, making you think that you can borrow as much as you want without interest, but after the limited period their regulations punish any late payment by jacking up interest. (high interest = high profit)

Banks 30 years ago weren't that interested in offering credit cards and they weren't very popular, because Usury laws in almost all states set a max percent on how much interest they can charge limiting the profit that can be made. This changed in the 1978 U.S. Supreme Court decision, Marquette vs. First Omaha Service Corp, it was decided that a state can export its interest cap to another state. So the banks setup shop in high cap states and started offering credit cards knowing that they now can make almost 40% interest compared to the 6% that most states are capped at.

Now Americans are the most heavily in debt people in the world, with an average of 8500 per household at the average interest of 15%! Pretty nice setup for the banks I'd say, so please people spend responsibly.

(thank you goes out to FaqFarmGeo Vbala Electrical Engineer Allyjean, I merged all of your points with what I wanted to add)


Related Questions

Yes. It is one of the most common reasons people have a credit card.

There are multiple reasons why a credit card could be declined. The most common reason is that there were insufficient funds available on the card. Other reasons could be that the store doesn't accept that card, or that there is an alert placed on the card for that type of store.

Many people have a sky card in the world today. Sky cards are like credit cards. They can be used for the same reasons as credit cards or for different reasons too.

Sometimes, because there are some people hide behind you and steal your credit card when you pay or sometime they disguise as someone else and steal money from your credit card.

Discover card is a major credit card. Visa is another popular card, as well as Chase cards. Capital One has been gaining popularity throughout the United States.


There are many opportunities for low credit/bad credit/no credit credit cards. Especially in this economy people have fallen behind and still need to have their credit card in emergencies. Here is a good website.

FIA card Services issued new cards for security reasons

There are many reasons to have a credit card if your credit is fair to poor - having a credit card and using it properly can actually rebuild a credit score that has been damaged. Two popular credit cards for this purpose are the Barclaycard Rewards Mastercard For Average Credit and the Capital One Cash Rewards card.

The reasons that some college students would need to get a credit card is because they'll need to pay for their books some how, not to mention their student loans as well.

Yes. There are several reasons a credit card company can do this. Being late is only one of them. Your credit card agreement spells them out in plain English. You may have to dig into the 3 or 4 page document, but the answers are all there. Most credit cards have a web site you can look up your credit card agreement. They vary from bank to bank, but essentially they have the ability to do this. The credit card reform bill that recently became law has made some of these reasons illegal: like you were late paying OTHER bills. But many reasons for raising rates remain.

There has to be a reason for the card to be declined ! Contact the card company and ask them why the card was refused. Common reasons for a card being declined are... Insufficient funds in the bank account, not enough credit balance on the card, or the card is reported lost/stolen.

There are many reasons why bad credit would mean that one couldn't get a Visa credit card. The biggest reason why one would have trouble getting a credit card with bad credit would be that one has proven that they cannot pay off their debts in the past.

They can if its under parental supervision, most places they require the use of identification to prove the you are the person whose name is on the credit card, but if its online all you need it the name expiration date, credit card number and the cvs number located in the back of the credit card for security reasons.

Some of the reasons this could happen to your credit card are listed below. Be sure to avoid these so you can avoid financial stress and bad credit.Three checks returned to insufficient funds in a 12-month periodThree suspensions in a 12-month period (the card will be cancelled on the third suspension)Salary OffsetCard is reported as lost or stolen

Yes, very much, provided that you never let your pymnts get behind in which case it can do a lot of damage. good site to know about credit card

Credit card images can be personalized depending on your credit card issuer. Most credit card issuers offer a service for credit card personalization for a fee.

Talking with the credit card company directly can often help, a loan advisor or credit assistance company like the one found at is also an option.

a credit card that is secured by a deposit of your own money

Notify them that the credit card was stolen to the credit card company and dispute all the charges on the credit card. You would also have to file a police report if the credit card was stolen. The credit card company must investigate the charges.

You can get a credit card by appying for a Capital one card. They are great for building credit.

Credit Card credit typically means the amount which you have taken credit on your credit card ,for more information refer to the link below .

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