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How the World’s First Credit Card Came About

posted on: Jul 12, 2019

How the World’s First Credit Card Came About

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It is undeniable that we are in a modern economy where we transact using plastic money. It is simply a paperless economy that has its own challenges, but it definitely has more pros than cons. Credit cards have simplified the way you do your transactions, especially those that involve significant amounts of money because it is simple and safe to carry around. However, this doesn’t go without caution because hackers can use your personal details to initiate transactions. It is therefore advisable to keep your bank details safe together with your credit card when using it. Credit cards have come a long way, and here are some interesting details about them that you need to know.

The origin of credit cards

Exchanging goods and services was hard because you had to have the cash to get what you needed. However, this changed in the 1800s in America when the traders started using credit coins and charge plates to buy goods and pay for them at a later date. One interesting story is about Frank McNamara, who was the first person to use a credit card that is almost similar to the modern one. He had gone out for a business dinner at a restaurant, and when the bill was brought, he had no money because he had left it at home by mistake. He was lucky enough that his wife footed the bill and they didn’t have to suffer embarrassment. This event made Frank McNamara determined to start another formal way of settling bills using a cardboard credit card which was later called the Diner’s Club Card.

Use of credit cards

The use of credit cards gained momentum very quickly and the first people to use the Diner’s Club Card were McNamara’s family and friends. However, by the beginning of 1951, the card was already popular and used by close to over 20,000 people and its use spread out of America within a few years after its innovation. The American Express Card came into the market in 1958, but it did not outdo the Diner’s Club Card. However, the American Express card made a major milestone in the history of credit cards in 1959 by printing the first plastic credit card. You can now get credit cards from almost all banks and the credit limits depend on your creditworthiness. Speaking of creditworthiness, if you do not have a good credit rating, you can check Boostcredit101 website to get experts to help you improve your credit score. With a good score, you can get credit cards that can enable you to buy goods and services on credit and pay later according to agreed terms.

The future of credit cards

Credit cards are widely used, and this is expected to advance in the coming years through the used of modern technology. Currently, credit cards are not totally safe because your account can be hacked if your details fall into the wrong hands. Artificial intelligence will be a major solution to that challenge by using your biometrics to authorize transactions, which are hard to fake.


The global economy is shifting from paper money to plastic money, and you need to get yourself a credit card from a reputable financial institution that will simplify your transactions even across the continents.