Money is an essential part of our lives. The credit card has overcome most means of monetary exchange and has become a necessity. As Danwei Huang describes on his website," Dward Bellamy, in his book published in 1888, Looking Backward, wrote about an insomniac who had to be hypnotized to sleep every night. One fateful nighe government and every citizen would get an equal share of goods. The credn exchange at public stores for their needs. All commodities were sosed no cash or any commodity money. Apparently, the citizens were awarded, every year, with a certain amount of credits each, which they could get a limited advance on the credits that would be issued the following year."(Danwei 2) This prediction never came true, although it was considerably accurate. The credit card has gone through many stages, including its beginnings and evolution, increased popularity, and it effects on our world economy today, all of which will be describe here.
Credit cards haven't just one beginning, the differentiate among who you ask. Jonathan Williams wrote in Money-A History- that credit cards were first issued by The Diners Club. In "Plastic Money" Huang Danwei writes that oil companies first issued a system of credit using cardboard cards. However, Huang Danwei also says that the Diners Club cards were the first plastic system of credit. According to him, the oil companies hoped to keep their customers, since most of them didn't have money with them to pay for repairs and gasoline.
The first modern credit card was issued by the Diner's Club. According to Howard Strong in What Every Credit Card User Needs to Know," He[Francis X. McNamara] would borrow money from McNamaras's loan operation and use it to pay off the card bills run up by his pals. He profited from the spread between the rate he paid McNamara and the interest rate his friends paid him."(Strong xi) McNamara eventually took the idea of a card that could be used at many different places.