The use of credit cards is noted to have started in the U.S. during the first quarter of the 20th century, around 1920s, when companies and firms such as clubs and hotel chains conceptualised an efficient, quick and cash-less payment system for their elite customers. The credit cards then are only accepted in a business which issued it. It was not until 1938 that companies started to accept cards from other companies. But what started out as a marketing scheme by businesses to gain stronger customer loyalty was adopted by banks and financial institutions as a financing scheme, which allows people purchase products or services that they cannot afford to buy using their existing cash. From then on, much development and innovation have taken place with credit cards.
It has became the most flexible and convenient facility to make purchases with countless third parties from all around the globe. And as the years passed, the credit card business has significantly grown into a multi-billion industry serving consumers and business worldwide. In fact, in the world of banking and finance, the sector is the most lucrative business. The rise of the credit card industry can be attributed to several factors. But one of the main driver of this is growth is the continuous rise in the number of people who enjoy reaching their wallets for plastics, instead of cash, in making their purchases. The convenience of using plastic money encourages consumer to purchase, if not fuel their compulsion to buy things on impulse. In addition, with all its convenient and promises of benefits, people encourage more to get one, albeit some issues regarding credit card debt.
