Remember When

August 10th, 2018 at 2:56:06 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 146
Posts: 25010
Quote: AZDuffman[/q


Way before my time.


It was my dads first charge account,
he was very proud of the card.
If you take a risk, you may lose. If you never take a risk, you will always lose.
August 10th, 2018 at 9:30:16 PM permalink
zippyboy
Member since: Oct 24, 2012
Threads: 2
Posts: 665
I believe the first credit card was Diner's Club. People at the time couldn't believe they could just leave the restaurant without paying, they could "put it on their card", whatever that meant.
August 11th, 2018 at 12:03:55 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
Quote: zippyboy
I believe the first credit card was Diner's Club. People at the time couldn't believe they could just leave the restaurant without paying, they could "put it on their card", whatever that meant.

That is more or less true. Diner's club was a "charge card", and not a "credit card".

Diners Club Card,debuted in 1950.

In the early 1900s, a few U.S. department stores and oil companies took credit one step further by issuing their own proprietary cards, the precursor to modern-day store cards. Such cards were accepted only at the issuing merchant and designed less for convenience than to promote customer loyalty and improve service.

Bank-issued charge cards originated in 1946 when a Brooklyn banker named John Biggins launched the Charg-It card. Charg-It purchases were forwarded to Biggins’ bank, the middleman that reimbursed the merchant and obtained payment from the customer. Purchases could only be made locally and only bank customers could obtain a Charg-It card.

The American Express card, launched in 1958.

But then a lightning bolt struck. The real profits would come from interest, and not just convenience! The Credit card was going to replace the charge card.

Bank of America also debuted in 1958, mailing unsolicited BankAmericard credit cards to select California markets. In 1966, BankAmericard went national to become the nation’s first licensed general-purpose credit card. It would be renamed Visa in 1976.

In 1966, a group of California banks formed the Interbank Card Association (ITC), which would soon issue the nation’s second major bank card, MasterCard.

The slang deadbeat was used in British and American English from early 19th century to mean worn out. After the civil war in American English it started to mean "worthless sponging idler". At some point, in a sort of joke, the credit card industry began calling people who pay off their balance every month deadbeats.
August 11th, 2018 at 4:10:39 AM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 135
Posts: 18136
Quote: zippyboy
I believe the first credit card was Diner's Club. People at the time couldn't believe they could just leave the restaurant without paying, they could "put it on their card", whatever that meant.


IIRC some exec had clients out for dinner and was short, couldn't pay. Embarrassed he decided there had to be a better way.
The President is a fink.
August 11th, 2018 at 11:05:46 AM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 146
Posts: 25010
Quote: Pacomartin
The Credit card was going to replace the charge card.


In the early 60's my dad had
to get a small loan when he
wanted something that cost
a couple hundred. There were
loan shops downtown where
you could borrow as little as
$50 at reasonable rates.

The CC put them out of business.
A CC is just a loan, without having
to leave the house to get it.
If you take a risk, you may lose. If you never take a risk, you will always lose.
August 11th, 2018 at 12:04:26 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 135
Posts: 18136
Quote: Evenbob
In the early 60's my dad had
to get a small loan when he
wanted something that cost
a couple hundred. There were
loan shops downtown where
you could borrow as little as
$50 at reasonable rates.


$50 then is like $500 now. Impossible to make money at those levels unless you charge 3-20% a week in interest.
The President is a fink.
August 11th, 2018 at 12:20:56 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 62
Posts: 7831
Pawn shops and union halls were often a source of 'a few extra bucks' for some special need.
Later, small loan companies became available and of course their rates were steep but their collection methods did not involve "legbreakers".

The vocabulary says it all.
"Credit" means debt.
"Credit History" means debt history.
The thrifty who paid off their credit cards each month were 'deadbeats' because they paid no interest. People with zillions of entries in their savings accounts were also deadbeats because they kept no money in a checking account.
Those without a credit history couldn't get loans.

Now. Even the Jewish Free Loan Society closed its doors.
August 11th, 2018 at 12:23:23 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 146
Posts: 25010
Quote: AZDuffman
$50 then is like $500 now. Impossible to make money at those levels unless you charge 3-20% a week in interest.


I remember on year my dad
got a $50 loan from Beneficial
Loan for Xmas presents. That's
$425 in today's money. This is
a page from a 1961 Xmas catalog.
You could get a lot of toys for
$50.


If you take a risk, you may lose. If you never take a risk, you will always lose.
August 11th, 2018 at 12:40:20 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 135
Posts: 18136
Quote: Fleastiff
Pawn shops and union halls were often a source of 'a few extra bucks' for some special need.
Later, small loan companies became available and of course their rates were steep but their collection methods did not involve "legbreakers".

Now. Even the Jewish Free Loan Society closed its doors.


There are some crowd-lending sites online, but the same problem. You need to charge mafia rates to make a profit. Then the problem that people who need so little money have a very high default rate. Meaning you have to charge a higher rate.

Pawnshops with physical collateral and high rates end up being the better solution.
The President is a fink.
August 11th, 2018 at 1:01:50 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 146
Posts: 25010
Quote: Fleastiff

Later, small loan companies became available .


In 1959, $200 was a car loan.
You could get a very decent
used car for $200 and the loan
company was on the title until
you paid it off. Hell, I was buying
cars in the late 60's and into the
70's for $50 and driving them
till they quit and buying another.

I remember getting a high mileage
67 Dodge in 1972 for $50. High
mileage then was 80,000. I loved that
car because it had a 426 and went
like a raped ape, as we used to say.

If you take a risk, you may lose. If you never take a risk, you will always lose.