Credit cards – many happy returns
Author: Dot Piper
In the forty years since Barclaycard introduced the first credit card to Britain, there have been many changes. From being something to be regarded with suspicion they’ve changed into something we don’t appear to be able to live without.
The British seem to have taken to these cards like ducks to water and now 3.7 million people are claimed be in possession of 6.7million cards. Some people use their cards to switch balances between accounts and therefore save money and some simply sign on to new credit cards which have opening offers attached to them and, in reality, make little use of them. If you travel abroad regularly, it’s a good idea to cover both Visa and MasterCard in case of difficulties.
For the first five years, until 1971, Barclaycard retained its exclusivity but now there are 1300 different sorts of credit cards available across Britain. On average, card holders spend £60 per transaction and the amount spent in a year comes out at around £4,600.
Probably the most famous credit card in the world, American Express, was established in 1995. American Express was around before then, but as a charge card, the balance of which had to cleared monthly.
From the introduction of the Barclaycard in 1966 with its £100 credit limit, the average credit limit has now risen to £1,500 per card. Not everyone is successful with their credit card application though, as last year there were 1.7 million credit card rejections. There is around £1.4 million a year lost in fraudulent transactions. The recent introduction of the chip and pin should, hopefully, reduce these figures and new methods of card protection are being developed all the time.
The “flexible friend” has changed the face of shopping in the UK. Practically all retailers welcome credit card transactions. They can be used for shopping on the internet, booking holidays and an added bonus is the insurance which is included when paying with your card. It’s easier to use your card for everyday transactions, such as re-fuelling you car and it’s easy to keep track of payments with your monthly statement. If you pay your bills on time and avoid stretching yourself too far financially, your card really is your friend.
On the minus side, for someone who struggles to organise their finances, credit cards offer a temporary escape route and can create debt problems. Care is needed to avoid this, but if problems develop, our advice is to seek help before a molehill becomes a mountain!
A few more facts for you –
There is an Arab oil magnate who has a higher than normal credit limit on his Barclaycard – supposedly £1million
You may have heard of an American man nicknamed Mr Plastic Fantastic. His real name is Walter Cavanagh. He is reported to hold 1397 credit cards, with a maximum spend of $1.65million. We won’t even think what the repayment would be!
There’s a UK credit card which charges 46.19%. This tops the most expensive list! Interest rates average a more affordable 15.5% at present.
Competition in the credit card market has resulted in some excellent introductory deals at present. Applying for them is simple and the best way to discover them is on the internet.
Used wisely, they really do make life easier. Happy Birthday, Credit Cards.
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