History in Plastic: Credit Cards

The average American holds more than $6300 in credit card debt. Money-lending is as old as human culture, but widely available revolving lines of credit is a relatively new invention that took decades to develop. The History Guy remembers the forgotten history of credit cards.

This is original content based on research by The History Guy. Images in the Public Domain are carefully selected and provide illustration. As images of actual events are sometimes not available, images of similar objects and events are used for illustration.

All events are portrayed in historical context and for educational purposes. No images or content are primarily intended to shock and disgust. Those who do not learn from history are doomed to repeat it. Non censuram.

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Script by JCG

#ushistory #thehistoryguy #economics

[TheHistoryGuyChannel]

A viewer caught an error. I stated that 60% of households are able to pay off credit card debt each month. Actually, I reversed the numbers. About 40% of US households with credit cards make enough to pay off their balance each month, and 60% do not.

[gregs]

I still remember the Diner Club International commercials with Telly Savalas: Who loves you baby?

[kevinbendall]

I remember a Flintstone's episode that was a cautionary tale about the dangers of credit, when Wilma and Betty got charge cards and went running for the dept. store shouting "Charge it!!!" with card in hand.

[autumnmatthews]

I haven’t watched a single video of yours that I didn’t enjoy. They’re all extremely interesting

[scottfuller]

Suggestion for future episode or episodes, I am almost 50 and the things that have changed in my life time seem remarkable. I vaguely remember my father getting two news papers, morning and evening editions in the early 80s.

I was always given pocket change to make an emergency call from a payphone.

Also "important" mail had to always be taken to the big blue box at the end of our street, to important to just put in our mail box.

I as well remember the Beta max vs VCR and the Laser Disk.

Lastly, I remember when Ronald Regan broke up the Phone company and we finally could buy a phone instead of renting it from C&P

I work in a restaurant with 16 to 30 year old's who don't remember any of this.

Thank you for your time.

[clearsmashdrop]

I'm so glad the 'chunk---cerchunk' machine was mentioned. Don't remember the last time I actually saw one; prob the mid 90s

[copperhamster]

A few things, my dad had a Montgomery Ward credit card and it broke, so he took it to Wards to get a new one and the entire finance department had to see it because it was the oldest style card they'd ever seen
And number two, I finally understand a joke in a cartoon. A gag involved the sound of a charge trumpet, followed by the Wilma and Betty yelling "Charge It!"
They were specifically referring to the Charge It cards.
I was in the quonset hut at work the other day (where old work stuff goes to sit for between 5 and 15 years before we finally throw it away like we should have done when we took it to the hut) and saw a half dozen kerchunk machines in a box.

[OldDood]

That was very informative. Thank You.
My Father and one other man started 'Mid-West Bank Card' back in the early 1960's at a Flint Bank that no longer exists.
The bank card ended up being swallowed into Master Charge. (Master Card).


I remember my Father telling me how they worried about sending out 500 cards to their 'Best' customers.
Turned out their delinquency rate was very low and it was a success...So my Father kept his position at the bank ;)

[bwhog]

Fascinating history.

I have stated in writeups that I have done that one of the reasons for the economic boom in the 1980s was increased access to credit (through which, deferred payments and payments over time--revolving credit--allowed them access to a wider selection of goods--and also essentially ended the "layaway" counter previously common at many stores), when credit cards began to become available to just about anyone who had a good paying job, not just those who had substantial assets. I did not realize, though, that part of the reason for this as well as the uptick in economic activity was the innovations (such as modem technology allowing credit accounts to be verified and credit limits checked in real time) that allowed credit cards to be accepted more widely and at an increasingly diverse set of businesses. That is, improvements in credit card security, credit card processing, and merchants' ability to receive payment for goods bought on credit all helped to supercharge the economy.

[julyxx]

I remember the metal charge plate, once you had one you could go into the credit department of a particular store and apply for credit at that store. They would then phone the central agency and they would give the store a summary of your use of the charge plate. The store would then put a notch in the charge plate that allowed the plate to be placed in their imprinter, if the plate was not notched it would not fit in the machine. My mother’s card looked like a saw blade.

[tdgreenbay]

Great video.... the one card I remember most us still the advertisement for the american Express card... "Dont leave home without it."

[omega]

I remember when I was a boy in the 1970s, you would still hear old timers referring to credit cards as "charge plates" sometimes.

[bobg]

My first card was a MasterCharge card! It was the Cat's Meow to have. My goal was to have an American Express card because having one meant your shit was better than anyone else's. It was fun to have EVERY department store card, but then it was absolutely no fun to write the checks at the end of the month.

[servico]

Having used credit cards since the 1970s sporadically at first until now virtually all purchases are made on plastic. The introduction of loyalty programs made it advantageous to use a single card for ALL purchases. With a high degree of security, speedy communication, and various fraud detecting algorithms it is possible to detect a misuse almost instantly. Formerly Travellers' checks were the only way to ensure international travel funds now a single piece of plastic is all that is needed. Cash being relegated to small cash transactions such as tips. The credit card exploded on the internet and has enabled services like THG to be crowdfunded by those who enjoy the presentations. Thank you, Sir.

[heronimousbrapson]

The card affiliated with the BankAmericard was known in Canada as "chargex" and in the UK as the "Barclaycard".

[RubenB]

Millions are paying interest on tacos they ate years ago.

[surfmanx]

In 1988 I was an exchange student at the University of Costa Rica. I used my American Express card to get Amex travelers checks and used those to buy a 1974 VW van. I wish I had that van.

[asteverino]

credit cards in the 1980’s.
I had many. Department stores, gas stations and the Master Card, Visa!
Thanks for the history and your history guy.

[JED-bsyw]

Credit can be very useful when used wisely. Those who decry unscrupulous lending are often forgetting that the other side of that equation is irresponsible borrowing.

[roywhiteo]

When my dad died i took over his american express account and got to keep his member since 67 on the bottom and it bumped me up 30 points.