Through aggressive marketing and the mass mailings of unsolicited credit cards, companies were able to sign up millions of customers in a short amount of time. American Express carved a niche in the saturated market when it released the gold-colored version of its executive credit card in 1968. It was one of the first in a line of color-coded luxury cards geared toward the affluent market—a low-risk, and often heavy-spending, group. The card was simultaneously a status symbol for those high-rollers who wanted everyone to know it.
Plenty of large and small players saw the opportunity in the card business and jumped in quickly. American Express (AXP) differentiated itself from other providers by offering the first-ever plastic credit card in 1959. As opposed to flimsier cards, the plastic alternative was designed to “better withstand day-to-day use.”
The first bank credit card, the BankAmericard, was unveiled when Bank of America gave out 60,000 unsolicited cards in Fresno, Calif., in 1958. Unlike in the past, when getting a loan might have meant taking a trip to the bank’s basement, this card was a ticket for anyone to spend freely and decide when was best to pay it back.
01. Most consumers want card that gives reward point when he or she spent dollar. So it is more possible to get reward. 02. Multiple credit cards are also a backup for you. If your parse or wallet is stolen or lost, you could use another. Last months my mother ATM card was blocked and that was her single card!
03. And also minimize possibility of identity theft and card hacking in online.
04. “You have a option to fire one bank and hire another if you don’t like the job the bank’s doing” by Bilker. And having this options you can chose lower interest rates from other bank.
05. Having multiple credit cards, you control your professional, personal and online activity easily. And you also know that, different seller accept different card.
01. you may suffer to carry for racking up debt and damaging your credit score. When you open a store CC, 20 points will reduce from your credit score. 02. When you submit an application for loan, lenders may calculate your debt to income ratio. If you have multiple, it may tough to gauge you at your riskiest debt level possible.
03. You have to pay more temptation with charge purchases if you have multiple credit cards. As your credit card balance increases, your credit utilization goes up. So it is important to reduce your cards quantity in that case.
04. If you have multiple cards but all of them are not other types of accounts then your credit score may affected. I mean, try to get it from different type credit account otherwise it will penalize you.
05. You may face difficulty to manage all of your cards. When all of them are active it will much harder to manage your monthly payments. It is easy when you have one to three but when multiple (five plus) it will hard to track, including payment due dates, interest rates, fees, and charges you’ve made.
Tip: You can use an online tool (track cards) to track all of your cards.
Your 16-year-old has just received a major credit card with his name on it and a $1,000 spending limit. What do you think she would when you drop her off at the mall? would she have the knowledge and awareness to use it wisely?
©2009 All About Credit Card | by TNB
