The social effects of credit cards

Essay by ngd84High School, 12th gradeA+, April 2003

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When American Express and the Diners club first launched their idea for a credit card they had no idea how it would affect the rest of the Twentieth Century. It was originally an agreement between a couple of upscale New York City restaurants to give their customers a sort of tab; however, it didn't revolutionize the way we spend money until many years later when the magnetic strip was put on the back. Credit cards are basically an agreement between the cardholder, the store, and the credit card company. The credit card company pays the store for a card holder so that the cardholder can pay the credit card company back later. Today, most Americans have at least one credit card, and most credit card holders have at least two or three. They have had a great impact on our society, for the better and the worse.

. They affect our daily lives more then we may realize. Nowadays, carrying a credit card is as good as carrying cash because there are such few places that will not accept a credit card. They are also much safer than cash because if a credit card is lost it may be canceled right away and one can limit or eliminate losses. If cash is lost then it is gone forever. Another advantage is that one can finance anything through the credit card. If you have an absolute necessary purchase to be made, and can't afford it immediately, you can pay it off slowly, a little bit every month. A credit card can also help build one's credit rating. Paying bills on time shows that one can be trusted and is financially responsible. Having good credit can help people do numerous things; such as getting a loan from the bank,