Bank Credit Cards

Written by Jared Vincenti
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Before credit cards, many stores would extend credit to their shoppers as both a favor and as an incentive to choose them. However, the credit world was turned over in 1950 when the Diner's Club issued credit cards to its members that were accepted at a number of participating merchants. From this first independent credit company, many have sprung up, followed in its footsteps, and even overtaken Diner's Club.

Not Just Credit Companies . . .

It wasn't long after the first credit companies issued cards, though, that banks started to issue credit cards as well. With the financial resources at hand, major banks stepped into the credit arena. Certainly, credit cards were more and more popular, as you could spend as much or little at a time on credit, without the hassle of going out and applying for a loan.

Now, nearly every major bank offers credit cards. For example, CitiBank, Wells Fargo, Bank of America, Kinecta, and others all issue a variety of different credit cards. These should not be confused with debit cards, though.

Banks offer debit cards as well as credit--sometimes even keeping both functions on the same card. A debit card takes money from an established savings or checking account, though, and is not based on credit. Credit cards represent money loaned to the borrower, not an existing balance.

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