The Secret History Of The Credit Card
If you have an hour to kill, watch the video below, “The Secret History of the Credit Card.” The New York Times and PBS’ Frontline teamed up in November 2004 to create this fascinating look at how the credit card industry got to the point it’s at today, which is fairly unregulated.
It’s amazing to hear at the beginning of the video that interest rates used to be legally mandated. There would be certain interest rates for financing used cars and a different rate for financing new cars, etc. Times have certainly changed, especially when it comes to credit cards. The video has an accompanying web site loaded with educational information and related reports from The New York Times. Some of the web site’s information is outdated, but there are updates throughout, specifically regarding the revision of bankruptcy laws a few years ago.
CreditCards.com has amassed a staggering collection of recent credit card statistics that shed light on just how prevalent plastic is in our see-and-spend society. About 14 percent of Americans use at least 50 percent of their available credit and carry at least six credit cards. That group, however, has a credit score that is 30 points lower, on average, than the group of consumers using less than 50 percent of available credit. While more than half of all people are using less than 30 percent of their credit limit, one in seven are utilizing more than 80 percent.
Fortunately, there are some statistics that make it seem as though the credit card industry doesn’t quite have a death grip on American society. For instance, CreditCards.com cites the Federal Reserve in saying that most U.S. households have no credit card debt, about one-fourth have no credit cards and about 30 percent pay off their balance each month. Whether you fall into the category of risky or responsible credit card management, this video is sure to be enlightening. Programs like Frontline aren’t exactly enjoyed by mainstream American society, but maybe if documentaries like this were more popular, far fewer Americans would drown themselves in debt and then bury their heads in the sand.
