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.
Great informative video as always. Question, how, why or what lead to The America's , north and south moniker's? What is the original of Amrerica's and how was it inflicted on 2 new continents during the European Age of expansion? cheers
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.
We had some underneath the counter when I worked as a cashier at Canadian Tire in 2013-2014. Though of course we never used them and weren't trained to.
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.
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.
Ultimately only the consumer loses as the card use fee is always given back to the consumer as higher prices even to people paying cash--except for gas station mainly that have a lower price for cash.
@@lightdark00 There are no free lunches. We have shuttered our industries for less expensive cars, electronics, clothes, food Our wars have become longer with less return and a whole segment of our population wants to adopt what Joseph McCarthy and Richard Nixon tried to suppress. 2020 may well the start of armageddon, regardless of the outcome. Four years of a congress tied in Knots may only lead to another four years of the same. Use your cash to purchase protection and bullion it may be the only solution if only postponing the inevitable.
servico100 I wish people would open their eyes and understand all the wealth around the world seen in amazing new cities is because of the wealth of the first world being lost. I wish there was a solution that didn't hurt, but nothing is sustainable as it is. If we get a democrat we are doomed even sooner.
Srsly literally NO-ONE asked for a political debate here...smh...😑😣 Anywhoooo...I think one really good benefit with the adoption of plastic is with currency exchange, most prevalently with purchases made online with retailers in other parts of the world. SHOULD said retailer decide to allow customers in other countries access to their goods online, it is simple for them to set up instant currency exchange right on their website, with prices shown in both the native currency AND the currency of the country the customer themself is in. Then, with a few simple clicks to confirm and process the transaction, funds are automatically exchanged over the internet, being withdrawn from the customer's bank account in their currency and deposited in the retailer's account in the currency of their country...good example would be Big Finish selling their Doctor Who audios to customers in the U.S.A....Americans use the U.S. dollar while the UK uses the British Pound. A U.S. customer browsing the Big Finish website will therefore typically see prices quoted in Pounds by default but can select an option to see prices in U.S. dollars. Once the transaction is complete, an online currency exchange algorithm converts the U.S. dollars withdrawn into British Pounds which are then deposited into the corporate account for Big Finish. This type of instant currency exchange is only really possible due to credit/debit cards being able to be charged electronically, whereas cash is by nature a solely manual form of cash-trade, requiring an actual physical exchange of cash from one denomination to another and can be a much more lengthy process. However, thanks to plastic we can now trade privately as direct customers with retailers all over the world! YAAAS!!! 😁😁😁😁
@@christopheralthouse6378 Have you ever wondered about the transfer of numbers when they are called currency? Where is the CASH represented by this transaction? Just to depoliticize the topic OR perhaps not The Fed is a political subject.
I remember a TV-ad with an American business man who gets stuck in Budapest, telling the story how his baggage didn't arrive on this cold an rainy night in a foreign country. And then a voice over in sobbing gratitude: " But I knew two words in Hungarian - American Express! " Even just the memory has me rolling on the floor with laughter
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.
Copper Hamster In the early 1970s I was a “MasterCharge girl”. I worked for a large California bank, and my job was to set up merchants with MasterCharge and teach the employees how to accept credit cards. My little VW bug was always filled those imprinters, along with cases of sales slips. Once the merchants were set up to take cards, we would deliver sales slips when they ran out. The job didn’t pay much, but it was the most fun job I ever had!
funny you should say that, the head of barclaycard retorted to Parkinson's question as to which cards his family used : "only the worst kind of financial inept would use this device".
Fun story: When my family (I'm from Canada) went to Disneyland in California in the early 1970s (I must have been about 5 or 6) my dad brought along his Chargex card. He had checked beforehand to be sure it would be accepted in California and the company assured him it would be. But when he tried to use it at a store in L.A. the cashier refused it becasue she didn't know what the Chargex brand was; she knew Bank Americard but she didn't know Chargex. She thought my dad was trying to commit fraud. Dad asked her call the company and they explained that yes, Chargex was their brand in Canada and the card was indeed valid. Embarrassment ensued.
@@g00gleminus96 I had the flip. I went to Canada for the first time in 1969. I had a BankAmeriCard. I had difficulty paying for my dinner in a Hamilton restaurant on Dominion Day (Canada Day now). The next day when the banks opened, I got a cash advance with no problem, however.
Tub master never trust bank of America cards! They are forever coming up with hidden fees! They signed me up for stuff I didn't even know I'd consented to! Just took monthly fees from my acct! Luckily Obama put a stop to these banking practices!
I remember when my father received his first credit card in the mail one evening, during the early 1960's. He was so excited and remarked as he studied the card, that the card was constructed of plastic with a metal number plate. He promptly locked it in his desk and continued to use cash only. In retrospect? Maybe he was a visionary?
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 ;)
Yup, and I'm one of those Americans with revolving debt, that over been spending the past 10yrs trying to get out. Over had some wins, by closing about 15k in revolving debt in the same 10yrs, but Inhave more to go. I shall be free and clear in another 5yrs, and never to return.
A friend of mine in NY went into his bank a while after the last big stockmarket crash, maybe in 2010 or so. He was out of work and owed something like $15k on his card and he told them he couldn't pay it off and unless they were prepared to negotiate it down he'd declare bankruptcy. He ended up getting them to accept $3k in cash, closing his line of credit and deleting his debt. He was single and living with his folks so the bank had no choice if they wanted to get anything at all back. He had no assets. The only thing with a strategy like that is you have to be prepared to follow through with bankruptcy if they don't agree to a deal.
@@Shaun.Stephens right, that approach works when you are near bankruptcy. And if you've never been through it, they dig and dig to ensure you are near penniless before they give you a pass. And it depends on the type 7 vs 13. Unfortunately, I'm not in the situation where that will work. And most banks will allow you to get a reduced balance but since 2012, the banks are now allowed to put it on your taxes as income. It gets rid of the balance, but could have you owing IRS vs the bank.
@@donmoore7785 you are the man, then. I"m not doing too, bad yes I have 20K in revolving debt, but I also have 400K in assets. I did foreclose in 2008, but managed to recover and by 2 new homes after 2012. And now I'm in the process of purchasing investment property, I also, do Lending club as an investor, as well as 2-VA state 529's, 4x 401Ks, 2x IRAs, and I'm about to start playing with stocks. I'm not a Donald Trump, but to come from a family wealth of only 40K a year, the many financial blunders over the decades. I think I'm doing ok.
@Bob Ross I have 4 credit cards and pay them all in full. I get 5% cash back on almost everything, free money when I got the sign up bonus, and free extended warranty protection and travel insurance. You people who pay for everything in cash are essentially subsidizing my rewards
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.
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.
Extremely well said! I have used other people's money responsibly for decades and have no regrets whatsoever. It is a very powerful tool, but used improperly it can cause a lot of damage - like many tools.
The default rate is very high on credit cards that's why the % rate is so high. If credit cards were 4-5% rate you would need a 800 plus FICO score plus collateral to get one.
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.
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.
I remember the one line in one of the songs by the Mama's and the Papa's, something about Living on an American Express card! I learned later in life that they had been doing just that on an island in the carribean and when they landed in Miami the American Express agent met them at the airport and took in away from John Phillips, saying " I'll take that, thank you very much"
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.
Ahhhhh, 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.
January 22 is considered the most depressing day of the year. In addition to winter, short days, and no holidays for a month, it's the day that Christmas credit card bills arrive.
Some people see credit cards as "evil" but they're not. People need to understand that credit cards are just that: cards that lend credit and expect that credit paid back. It's not "free money." Use your credit card like you would a debit card. In other words, don't use credit cards to purchase something you couldn't pay off at that moment (or at minimum, within the month). There are exceptions to this, of course, when it comes to huge purchases like cars or a house, but in most cases, try to use your credit card like you would a debit card. Some people might ask, "If I do that, what's the benefit to using a credit card?" Well, the benefit is that you're not held liable for charges made if your card gets stolen (so it's much safer to use online), it's not directly attached to your checking account, and you can acquire a credit score (something that's vitally important in the US and Canada). Other benefits CAN include points or miles, but those are bonuses only. Some people seem to think these are scams, but they're not. It's basically a "thank you" for using the card on purchases you'd otherwise normally get anyway. The biggest benefit, of course, is the credit score. Sure, you could take out a loan to do that, but credit cards are simpler to handle. If you pay back your bill on time and in full each billing cycle, you'll have a nice credit score if/when you need it later on, and most people will need it. To banks and lending institutions, having no credit score is even worse than having a bad credit score because you're an unknown to them. Not having a credit score can effectively cripple you later on when it comes to important, life-changing purchases and even some employers use a credit score to help judge applicants (although I think this is unnecessary for most positions). So in a nutshell, credit cards aren't evil and they aren't scams so long as you act responsibly. Don't go on a massive spending spree (unless you can afford to pay it back right away) and always think, "If I had to purchase this right now with a debit card or cash, could I afford it?" If you can, go ahead and buy it on a credit card, but if you can't, don't do it unless you have absolutely no other choice.
Hi History Guy, my husband and I are big fans of your channel! I would like to suggest that you do stories about Gen. George Rogers Clark because I think that not many people know about him and his contributions to the Revolutionary War and westward expansion. Also Simon Kenton and the nasty Simon Gerty would make good episodes. I learned a lot about them while researching my ancestry, so fascinating!
Every week I have some company or another trying to give me there credit card, im not sure how they got my phone number but I have started telling them I am so glad they called and I want the maximum limit available because I just lost my job and am looking at bankruptcy but with a big enough limit from them I’ll turn things around, they never want to talk after that.
Awesome. Maybe a bit like me thanking telemarketers for their call, because it identifies them as a business that doesn't do a satisfactory-enough job to thrive from repeat customers, recommendations, and word of mouth.
@@henryhenry3832 Of course. You could have Googled for that info. I also almost never get any marketing calls because my phone co. supplies telemarketer blocking.
Yes, I have two of those charge plates. They are great conversation starters, an old Macy charge plate and one for Fedways ( a store in Amarillo, TX ).
Are they the same size as credit cards? I have often wondered why credit cards are the size they are - it is not a round number of inches or millimetres. Perhaps credit cards are the same size as charge-it plates.
My mom had one too, for Bullocks, a department store here in Los Angeles. And @Lysander MB, charge plates were about one quarter the size of a credit card.
When I was a kid, my Dad who was an executive at a computer company (in the '60s!) had basically the Big 4: American Express, Carte Blanche, Diners' Club, and BankAmericard. It was a big deal to have credit cards back then - you had to have a solid job and a good income. They weren't nearly as widely accepted either. Being able to get cash from American Express was an important benefit at the time because of that, and because ATMs didn't exist yet. Today, my American Express card (and some of my Visa/MCs) still offer the cash feature, but I've never used it. Today when I'm overseas I just withdraw some cash from my checking account in the local currency using an ATM, with no fee and a much better exchange rate than Travelex etc. Back then Dad had to go to an American Express office or at least a bank. He really didn't want to leave home without it! I still don't leave home without mine either :-)
we used to get books of numbers to check before running a card through the "knuckle buster." Visa would publish the book every week and scrupulous vendors would check for bad credit. Of course, if the line was long, who has time?
ONE more topic (of many) that SHOULD be taught in schools; credit, credit card us and how it all works and the HUGE pitfalls of credit cards. I remember reading somewhere that the average CC debt in the USA was $10, 000? GREAT educational and informative video.
I started working retail (in Canada) in 1980. I remember the "chunk-kerchunk" machines very well. Thanks for another great & informative video. Another interesting facet to today's credit cards are the rewards programs.
I carry a petrol company card, a 2% cash back credit card and a bank debit/ATM card. I pay the credit cards off each month and carry very little cash. Credit cards are a great convenience and especially if you keep them paid off!
Australian banks operate via visa and MasterCard credit/debit cards they can be used just the same as a credit card but you get a choice of whether you wish to use borrowings/credit or your own account/savings EFTPOS. We also are heavily into PayPass and the use of phones instead of cards I no longer carry cash and with mobile banking apps and online banking even if my card went missing for whatever reason I can log in to my bank account and cancel it immediately there is no delay its is right there and then. But credit no is don't go there it's ruined my life once already stupid me.
I find I use my credit card for almost everything, even at McDonalds. BUT, the total amount owing is paid every month. Failure to do that is a sure path to financial disaster.
The bank keep upping the limit on my Visa. I keep wondering what I might do with it. :-) I never buy anything I can't afford to pay cash for, but it's useful to smooth out the bumps. As well as for travel (handy) and for on-line purchases (almost essential).
I miss the days when the banks used to increase my limit. I haven't had a salary since 2003, so they are stingy with increases since my income comes from investments only.
An excellent, well researched presentation ... as usual. Technology (UA-cam), when well used, can accomplish so much. For the time invested, I have learned more from your videos than in many hours spent on other platforms, media or endeavors. Kudos sir. Keep your integrity and don't lose sight of the ball.
We have to remember that credit cards are by far most popular in North America, while being more rare in the rest of the world. The rest of the world mostly rely on debit cards, avoiding the whole idea of buying things on credit as an everyday event.
If you're responsible enough to handle it, credit cards are better for your financial situation than debit cards, because they provide benefits and are a good way to "passively" improve your credit score. It's a dangerous tool, but a very effective one if used correctly and responsibly, just like any other dangerous tool.
TissuePaper the whole idea of a “credit score” is really absurd, and just a way to trap you in the system, with fear of repercussions if you don’t work on that score and even one failed payment (or system glitch) can have really dire consequences. It’s a very US centered thing as many countries don’t have anything such, and rightfully so.
@@SwitchAndLever Honestly, I didn't realize credit scores were a US thing. How do lenders in other countries determine your lending limit or your interest rate? The way I see it, working on your credit score is just how you prove to a lender that you can be trusted to pay them back. Perhaps as an American I have a unique relationship with debt, but I fail to see a better way to finance important investments like an education or a home, and necessary expenses like owning a car (although I'm a firm believer in buying used cars instead of feeding the auto dealership monster we have here). I'd be interested to hear how this personal finance stuff where you're from.
@@tissuepaper9962 there are plenty of ways. Equity being one, if you own a house for instance. If you heave a steady job with income every month is another. The idea that you have to "finance...an education" is also a completely foreign idea to most people in Europe at least. School is free in most countries here, which means no tuition, and you only have to pay for sustaining your own living situation, and possibly books and study material. Most people get a small student loan to do that, or work extra on the side or during summers. I spent 5 years in uni to get my masters, my student debt is not especially high, due to no tuition fees. The time to pay off is calculated until your retirement (67 years of age) so the rate you pay back every month is also pretty low. If you have a history of not paying your bills you can get demerits listed in a system, but it's not like a credit score as there is no sliding scale. There is no system that keeps track of people who are reliable, only those that are not, and you have to mess up quite badly to end up on that list. I guess here we have a system where you're innocent, and thus reliable, until the opposite can be proven, whereas the US does not. Moving to the US from abroad, and thus not having a credit score, makes it really hard to get a foothold in society since so much is built around credit, and you can't get good credit anywhere due to not having a score. Even building a good credit score from nothing takes years. Honestly I think it's an abhorrent system which keeps people locked into it in a way that suits banks and financial institutions, not that suits the consumers.
An excellent video as always. I have two credit cards in my wallet and knew only a fraction of what you covered. Now I have yet another interesting story to regale people with at parties in an attempt to get them to watch your channel. Also, here's a topic suggestion: The history of the Wind Tunnel. I was talking with an aviation friend about the Wright brothers and how they used Otto Lilienthal's air foil/wing design books which led to Orville crashing and nearly killing himself. That near-death experience prompting them to develop the wind tunnel for testing their own designs in the safety of a workshop. Then my friend and I got off on talking about how the wind tunnel changed the world of transportation and not just in the sky but all modes of movement. Where today some of the most powerful supercomputers in the world are used for aerodynamic simulations of aircraft, landcraft (automobiles/bullet trains), seacraft, and spacecraft. Olympic runners and cyclists subject themselves to wind tunnel test to design better track suits and cycling equipment to reduce drag. The legacy of the Wright brothers' wind tunnel will be with humanity for the rest of our existence. Cheers
Chump Johnson It really doesn't matter except to your peace of mind, because the majority of people around you have abused the credit system to the point the whole system is about to fail and you'll be swept away in the total collapse. I will as well and that angers me.
What’s not being able to afford something have to do with credit cards? I think that you mean that if you are too stupid to be able to track what you charge and/or too undisciplined to prevent yourself from overspending...
I use a CC because I get Airmiles for every $10 I spend. I am one of the lucky ones where I can pay off my bill every month ... otherwise that would be a rather expensive flight when you calculate the interest on the CC!
THG should have a million subs! Great history lessons for all. I remember my grandfather having oil company credit cards that were msde of cardstock back in the early 70's. I worked at a full-service gas station early 80's. Only accepted a handfull of oil and government cards. We had the inprinter for the cards, and a book that had bad card numbers to check that the csrd presented was good. Think a new book was sent each month. We've come a long way since then!
He will be there soon, it was not that long ago he earned his first play button. Sharing him around like a venerial disease will ensure his second play button.
I am not sure about the behaviour of banks in the US but there was a time in Australia where banks would automatically bump up your card limit. In my case in the period of six months it went from three thousand dollars to seventy thousand dollars. I had family that worked in the banking system and I was aware that banks were trying their best to get people into debt cycles. Also they had a history of forcing the consumer to pay in the case of fraud. My experience in contract law was a god send. I sent a letter to the bank thanking them for all the additional credit and saying that I didn't need it. I stated that I would accept a liability of only up to $ 5000 no matter what circumstances and that they had two weeks in which to dispute these terms otherwise deemed accepted by the bank. Within two weeks I had a letter acknowledging that the limit on my card was set to $ 5000.00. The practice of automatic increases in credit limits was outlawed a couple of years later but it was this and other practices that generally made banks overall disliked in Australia.
I don't remember that they were pre-activated. I think we had to call to say that we had received it before it would actually work. ATT wanted a copy of the first page of your 1040.
When I finished grad school, I was immediately hired and earning a very high (for then) salary. But I had never owed money for anything, so had no credit history. It was difficult to stay in a hotel or to book an air ticket. I told the person at my new employer's whose job it was to find a house for me of my new problem. She promptly called the president of the largest financial institution in the state. I can still remember his laughter as they spoke. Had a card delivered the following morning. In the 45 yrs. that have since passed, I have never paid a cent in CC interest and never will. I'm well-off financially and still drive my great 22 yo. car, don't buy things I don't need and that won't make me happier and enjoy a comfortable, worry-free life.
I started an IT job with Citibank Credit Card Services in 1980. They were just coming out of a crisis in 1979 when they had issued a large number of cards without the rigorous algorithms now used to confirm someone credit worthiness. They had a huge collections problem for awhile.
I once broke a customer's VISA card by not fitting it in the imprinting machine correctly then running the roller over it rather too enthusiastically. The main part of the card shot several yards across the shop floor :-/
Imagine characterizing your own extraneous spending as slavery. I CANNOT imagine the soft, privileged, ignorant life that leads to thinking this statement was anything other than idiocy masquerading as wisdom. Control yourself and dont take your morals from a thousands year old torture book, you'll all be better off. So sad to see humans being this far gone.
Jeff Byrd my extraneous spending??? You need credit to buy houses, cars, and other essentials in order to survive and thrive in this American society. If i didnt have to have a credit card i wouldnt have it...
Love the channel, found it not too long ago, but I'm almost caught up. I'm sure there's an incredible amount of suggestions for videos, so I thought I'd add to the pile. As a Basque American I'd love to see one on Operation Rügen and the 1937 bombing of Gernika by Nazi and Italian forces during the Spanish Civil War. The Great Emu War of 1932 would be a a fun one as well.
Good video. Can you do a video on the History of Camp X " Britain's WW2 spy training camp where Ian Fleming (James Bond) was trained" Its located on the border of Oshawa / Whitby Canada. Also Robert McLaughlin was a Col at the time and the "Robert McLaughlin house" in Oshawa and his GMC car plant played a big part during the war effort. The men from camp X would go to his house to be entertained, Eat, had a bar for the guys and At one point emptied the swimming pool to do explosives training in it.
A rare factual error - the metal charge plates lasted almost until 1970, not ending in the '50s. I know because I graduated from high school in '65 and carried my own plate in the late '60s until it was ultimately replaced by the department stores' own plastic cards. The plates also had a convenient (albeit woefully insecure) feature. Notches along the top edge of the card designated in which stores the cards were accepted. Each store had its own notch position. The stamping machines in each store only accepted plates with the notch for that store.
Thank you, this was very interesting. My cards give me flights and hotels. They are only ever used with funds to back them. Someone assumed my identity last year and went through a *great deal* of money before it was detected. Having worked in this area in the past, I consider this credit card company's software to suck royally. Why would I go to a certain famous store in London to buy a famous (and expensive) mobile phone and laptop, then go to another branch in London on the same day to repeat the process? I shan't say who I worked for, but this would have set off red alerts everywhere in 1990.
Very simple to pay off your card every month, regardless of income: Do not spend more than your income. Long term credit balances are typically getting charged 20% interest. If you are carrying $1000 credit card balance you are paying about $100 a month interest. What could you do with $100 more a month?
What you could have mentioned is that in Sweden people are going for chips implanted in their hands. Just like you do with a dog or cat. I guess in the future it will be no cash, no cards, no ID just a microchip.
That program has been being tested here in Florida for over a decade now. Only mindless groupthink followers will be willing to participate in such a system, but that describes half of the people in our society. I will never accept it. Not ever. If such a cashless system of exchange is ever implemented on a mass scale, I will take what my family needs by force from the mindless lemmings.
@@rowdyrx6109 It has never been possible for a global ruler to institute a biblical anti-Christ style economic system in which dissidents would not able to buy or sell....until now. Also of note, the 10,000 year old City of Damascus has never lain "in a ruinous heap"....until now.
What I detest in Australia is how half the companies here have sneaked in credit card fees on purchases. I think it is criminal that this is allowed when the interest rates on most credit card accounts is still above 20%. I believe that the gouging scourge was banned in the UK only a year or two ago which is great to see. No doubt the unethical practice will continue in Oz as the population here loves to get ripped off... seems to be a national pastime!
Some places here in the US charge you another fee for using a credit or debit card, some places up to 10%...Our DMV does that, I just write a check or pay cash there. I try not to use my credit cards anymore, I still have a couple but trying to get them paid off ASAP and get back on the debt free track, except for the home mortgage which has about 22 years left on it but hope to be able to start throwing extra money at that here really soon too and hopefully cut that in half at least.
@@wildbill23c gee buddy, thats equally scandalous. Funny, only the other day I had the same issue with a credit card fee at our DMV... a government agency! I protested but received the usual blank looks and shrug of shoulders. I have noticed here in Oz the government is also passing laws to restrict the amount of cash one can actually use... unless I am wrong...(usually am!) the limit is going to be set at $10,000. The official line, as usual, is about anti money laundering, but most educated people know it is about control of the population and knowing where and when we spend our own legally earned cash. They are slowly forcing us to use our cards, and thus fees, by gradual legislation! Good luck with the home loan!
@@GaryNumeroUno Not sure how it is where you are, but our credit & debit cards now have chips in them which is supposed to make them more secure...yeah right after I got my new card about 3 days later my account was hacked, I had to call and argue with the bank for 20 minutes to get the money they stole back, and it took them 10 days to return the money to my account, yet the scammer was able to fraudulently drain my whole account with no questions asked...makes me think it was a 100% inside bank job...and those chips on your credit/debit cards are tracking your spending, what you buy, how much you spend, etc. If you have a computer with a SMART card reader and the software to look at what is on that chip you'd be surprised the amount of personal data on that chip.
I'm glad you mentioned that the future of the physical credit card isn't so bright. The development mobile payments by cellphone, which first became common in Japan by 2008-2009, really took off from 2014 on when Apple incorporated Apple Pay onto its iPhone 6 and 6 Plus models, and Google responded with the Softcard-derived Android Pay (today's Google Pay). And its adoption was helped with the huge scandal involving stolen credit card numbers from Target department store transactions in the second half of 2013, which accelerated the inclusion better security for credit card transactions, especially the required adoption of EMV-chip credit cards starting in 2015.
Interesting historical facts, I thank you for your research. If I may, the reason why credit cards and charge cards became so popular is because of the addiction known as instant gratification.
Another error is to say only the wealthy had access to credit in credit's early history. Up to the 1800s American farmers relied on local credit exchange to survive a drought or finance a new acquisition. It wasn't until expansion of estranged, capitalist modes of credit in the 1800s that local, personalized credit between neighbors died out. Yes, since antiquity there were large-scale debts for wars, early mills, or expansion of monoculture in colonies, but most transactions pre-1900s were small and personal.
It's not the high interest rates that upset me. It's the fact that banks knowingly push easy credit on the stupid and the desperately poor, people they know will likely go down in a life ruining debt spiral.
Bank Americard was the US brand. In Canada it was Chargex, which like Bank Americard was rolled up under the new Visa umbrella in the mid-70's. I've never heard the card imprinter referred to as a Zip zap, always knew it as an "imprinter".
The whole credit thing is a huge scam. I couldn't finance a home purchase, despite my VA benefits, because I didn't have enough of a credit history. By the time I built up a decent credit history, the homes in my area literally tripled in price. So I basically indepted myself and had to pay interest on that debt to qualify for a home loan that I can longer qualify for because of spiking prices. Brilliant. Now it seems like everything requires a credit score, even if credit doesn't even apply. At the very least, you end up paying more for the same goods and services. Totally rigged system.
It is possible to get a mortgage without having credit history. You just need a good broker who's willing to work with you and not mind that they will inspect all your financial history.
Lance/HG, Another great video and topic - thank you! I remember my father having a Diners Club card in the 1960s and not many other people did. God bless Paul
Automatic Teller Machines were invented before magnetic strip cards (9:11) and originally worked on one-time use cards for customers who needed cash on the weekend when banks were closed and tellers were off (the wild times when people didn't work on the weekends!)
Now how about a video on the history of "fractional reserve banking" and the Federal Reserve.... The engine behind the growth of credit, growth of the money supply, source of inflation, and resulting stealth taxation.
@@amak1131 and Mr. Collins: You are both very wise and know how it really works. The solution is to opt out where feasible. Don't play their game; don't fall for their malarkey. If we are tricked into believing we "need" this or that, we will pay more than its value to possess it, and still more to use, maintain and secure it. Others will bear the impacts of our use. For years I wanted a 40-ft. diesel pusher motor home. No money down, EZ terms. I finally realized how incredibly stupid it is to drive around the country with a toilet and 60-gallon disposal system, shower and tub, refrigerator, stove, oven and microwave, sink and dinette, queen-sized bed, living room couch and recliner, two TVs with satellite and stereo, washer and dryer, and all the food, clothing, leisure and recreational doodads I could possibly use, going down the highway at 70 mph, thinking how FREE I would be. FREE until I realized the 100 gallon fuel tank would be empty in two days, the waste tank would fill up in three days, and I would have no idea where I was going to park that night. A mountain of cash can turn into a pile of crap real fast. This motor home is a snapshot of the American economy. You can have it all. Enjoy it today. With easy credit, you won't have to pay until tomorrow. Emerging nations are going to honk and wave as they pass us by while we are stuck on the side of the road.
@@amak1131 Yes, historical trivia is fascinating and much of it is worthy of remembering, but there are some key, uncomfortable historical knowledge that really needs to be known too. And that is without getting into all the nebulous controversial theories....
In the late 60's I had a summer job at an Enco station pumping gas at the full service pumps, which included checking tire pressure, oil & water levels, and fan belt tension, plus cleaning the interiors and glass inside and out of cars that came in for service. Must have been 16, got my driver's license while I was working there. We took credit cards, I no longer remember what type, ran them through an imprinter, and then checked them against a booklet made from very thin, strong paper that listed all the no longer acceptable bad card numbers. Had pricing wars with a neighboring gas station dropping the price per gallon from the low 30 cent range to the high 20 cents.
One must have both credit and a good credit history to do anything anymore. Your prospective employers, your bank, your mortgage company, your car dealership, your doctor and hospital, etc.
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.
@Gene Pozniak blah blah blah
@Gene Pozniak
Laughable comment! Warren a faux progressive is just another HRC 2.0 !
Bernie 2020 for a clear adult vision for the future!
Great informative video as always. Question, how, why or what lead to The America's , north and south moniker's? What is the original of Amrerica's and how was it inflicted on 2 new continents during the European Age of expansion?
cheers
Ouch that's not a great Statistic.
Pocohantis is an expert in lying to move her career onward and upward.
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.
Kevin Bendall I never abused of credit cards and good advise do not give your 💳 to your children. I learn the lessons hard way.
At the end of that episode didn't Fred and Barney yell "charge it" on their way to buy new bowling balls?
ua-cam.com/video/8rqNZAIQH4U/v-deo.html
ua-cam.com/video/WcQzdYk7QHE/v-deo.html
@@shananagans5 Probably, I was 7 or 8 when I saw it. Like I say, it's a cautionary tale.
I still remember the Diner Club International commercials with Telly Savalas: Who loves you baby?
I haven’t watched a single video of yours that I didn’t enjoy. They’re all extremely interesting
Craig Matthews....He could do the history of drying paint and I would be enthralled.
I'm so glad the 'chunk---cerchunk' machine was mentioned. Don't remember the last time I actually saw one; prob the mid 90s
I used one at J.C. Penny in the 70's
Right after signing the slip you'd hear: "Do you want the carbons?"
@@BELCAN57 - That's true... the carbons could be used for fraud.
We had some underneath the counter when I worked as a cashier at Canadian Tire in 2013-2014. Though of course we never used them and weren't trained to.
I stayed in a run down motel maybe 6-8 years ago that was still using that machine.
i saw a tow truck driver use one less than a year ago lol
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.
Microfiche.
Cyclostyle machines.
I also work in a restaurant and gave to desk with people willing to create a music. 😢
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.
Ultimately only the consumer loses as the card use fee is always given back to the consumer as higher prices even to people paying cash--except for gas station mainly that have a lower price for cash.
@@lightdark00 There are no free lunches. We have shuttered our industries for less expensive cars, electronics, clothes, food Our wars have become longer with less return and a whole segment of our population wants to adopt what Joseph McCarthy and Richard Nixon tried to suppress. 2020 may well the start of armageddon, regardless of the outcome. Four years of a congress tied in Knots may only lead to another four years of the same. Use your cash to purchase protection and bullion it may be the only solution if only postponing the inevitable.
servico100 I wish people would open their eyes and understand all the wealth around the world seen in amazing new cities is because of the wealth of the first world being lost. I wish there was a solution that didn't hurt, but nothing is sustainable as it is. If we get a democrat we are doomed even sooner.
Srsly literally NO-ONE asked for a political debate here...smh...😑😣
Anywhoooo...I think one really good benefit with the adoption of plastic is with currency exchange, most prevalently with purchases made online with retailers in other parts of the world. SHOULD said retailer decide to allow customers in other countries access to their goods online, it is simple for them to set up instant currency exchange right on their website, with prices shown in both the native currency AND the currency of the country the customer themself is in. Then, with a few simple clicks to confirm and process the transaction, funds are automatically exchanged over the internet, being withdrawn from the customer's bank account in their currency and deposited in the retailer's account in the currency of their country...good example would be Big Finish selling their Doctor Who audios to customers in the U.S.A....Americans use the U.S. dollar while the UK uses the British Pound. A U.S. customer browsing the Big Finish website will therefore typically see prices quoted in Pounds by default but can select an option to see prices in U.S. dollars. Once the transaction is complete, an online currency exchange algorithm converts the U.S. dollars withdrawn into British Pounds which are then deposited into the corporate account for Big Finish.
This type of instant currency exchange is only really possible due to credit/debit cards being able to be charged electronically, whereas cash is by nature a solely manual form of cash-trade, requiring an actual physical exchange of cash from one denomination to another and can be a much more lengthy process. However, thanks to plastic we can now trade privately as direct customers with retailers all over the world!
YAAAS!!! 😁😁😁😁
@@christopheralthouse6378 Have you ever wondered about the transfer of numbers when they are called currency? Where is the CASH represented by this transaction? Just to depoliticize the topic OR perhaps not The Fed is a political subject.
Great video.... the one card I remember most us still the advertisement for the american Express card... "Dont leave home without it."
One of the top 10 television advertising campaigns in history, in my opinion.
I remember a TV-ad with an American business man who gets stuck in Budapest, telling the story how his baggage didn't arrive on this cold an rainy night in a foreign country. And then a voice over in sobbing gratitude: " But I knew two words in Hungarian - American Express! " Even just the memory has me rolling on the floor with laughter
Or steal home without it :)
@@camdogg83 that was a made up commercial in major league
@@tdgreenbay I am aware.
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.
Copper Hamster In the early 1970s I was a “MasterCharge girl”. I worked for a large California bank, and my job was to set up merchants with MasterCharge and teach the employees how to accept credit cards. My little VW bug was always filled those imprinters, along with cases of sales slips. Once the merchants were set up to take cards, we would deliver sales slips when they ran out. The job didn’t pay much, but it was the most fun job I ever had!
The card affiliated with the BankAmericard was known in Canada as "chargex" and in the UK as the "Barclaycard".
funny you should say that, the head of barclaycard retorted to Parkinson's question as to which cards his family used : "only the worst kind of financial inept would use this device".
Fun story: When my family (I'm from Canada) went to Disneyland in California in the early 1970s (I must have been about 5 or 6) my dad brought along his Chargex card. He had checked beforehand to be sure it would be accepted in California and the company assured him it would be. But when he tried to use it at a store in L.A. the cashier refused it becasue she didn't know what the Chargex brand was; she knew Bank Americard but she didn't know Chargex. She thought my dad was trying to commit fraud. Dad asked her call the company and they explained that yes, Chargex was their brand in Canada and the card was indeed valid. Embarrassment ensued.
I'm American and have a Barclays card.
@@g00gleminus96 I had the flip. I went to Canada for the first time in 1969. I had a BankAmeriCard. I had difficulty paying for my dinner in a Hamilton restaurant on Dominion Day (Canada Day now). The next day when the banks opened, I got a cash advance with no problem, however.
Tub master never trust bank of America cards! They are forever coming up with hidden fees! They signed me up for stuff I didn't even know I'd consented to! Just took monthly fees from my acct! Luckily Obama put a stop to these banking practices!
I remember when my father received his first credit card in the mail one evening, during the early 1960's. He was so excited and remarked as he studied the card, that the card was constructed of plastic with a metal number plate.
He promptly locked it in his desk and continued to use cash only. In retrospect? Maybe he was a visionary?
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 ;)
Yup, and I'm one of those Americans with revolving debt, that over been spending the past 10yrs trying to get out. Over had some wins, by closing about 15k in revolving debt in the same 10yrs, but Inhave more to go.
I shall be free and clear in another 5yrs, and never to return.
A friend of mine in NY went into his bank a while after the last big stockmarket crash, maybe in 2010 or so. He was out of work and owed something like $15k on his card and he told them he couldn't pay it off and unless they were prepared to negotiate it down he'd declare bankruptcy. He ended up getting them to accept $3k in cash, closing his line of credit and deleting his debt. He was single and living with his folks so the bank had no choice if they wanted to get anything at all back. He had no assets.
The only thing with a strategy like that is you have to be prepared to follow through with bankruptcy if they don't agree to a deal.
@@Shaun.Stephens right, that approach works when you are near bankruptcy. And if you've never been through it, they dig and dig to ensure you are near penniless before they give you a pass. And it depends on the type 7 vs 13. Unfortunately, I'm not in the situation where that will work.
And most banks will allow you to get a reduced balance but since 2012, the banks are now allowed to put it on your taxes as income.
It gets rid of the balance, but could have you owing IRS vs the bank.
Sorry to hear that. I have always paid off my balance monthly. Always.
@@donmoore7785 you are the man, then. I"m not doing too, bad yes I have 20K in revolving debt, but I also have 400K in assets. I did foreclose in 2008, but managed to recover and by 2 new homes after 2012. And now I'm in the process of purchasing investment property, I also, do Lending club as an investor, as well as 2-VA state 529's, 4x 401Ks, 2x IRAs, and I'm about to start playing with stocks.
I'm not a Donald Trump, but to come from a family wealth of only 40K a year, the many financial blunders over the decades. I think I'm doing ok.
Millions are paying interest on tacos they ate years ago.
Not if you're organized and responsible.
To be organized and responsible is to NOT get a credit card
That’s their fault.
@Bob Ross I have 4 credit cards and pay them all in full. I get 5% cash back on almost everything, free money when I got the sign up bonus, and free extended warranty protection and travel insurance. You people who pay for everything in cash are essentially subsidizing my rewards
@@Jaffjv same here. Credit is like any drug. Some can use it responsibly, most can't.
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.
Up next: The history of bankruptcy.
ft. Michael Scott.
I can’t wait for that storyline
That seems funny, but it's true that bankruptcy has a very interesting history!
that would be an interesting history that deserves to be remembered.
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.
Extremely well said! I have used other people's money responsibly for decades and have no regrets whatsoever. It is a very powerful tool, but used improperly it can cause a lot of damage - like many tools.
Thank you for standing up for lenders. I give you credit for that ;
The default rate is very high on credit cards that's why the % rate is so high. If credit cards were 4-5% rate you would need a 800 plus FICO score plus collateral to get one.
I've never used a credit card in my entire life.
A bank card or debit card is a useful thing, but credit cards are just a money-making scheme.
@@donmoore7785 Well said, again! I'm going to use that 'tool' phrase, in the future.
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.
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.
I remember when Sears cards were hard to get. 👍
I remember the one line in one of the songs by the Mama's and the Papa's, something about Living on an American Express card! I learned later in life that they had been doing just that on an island in the carribean and when they landed in Miami the American Express agent met them at the airport and took in away from John Phillips, saying " I'll take that, thank you very much"
@@stantaylor3350 LOL!
I remember when I was a boy in the 1970s, you would still hear old timers referring to credit cards as "charge plates" sometimes.
A whole episode about Piracy - without once using the word. Excellent!
If only credit card users understood the concept of personal responsibility, they wouldn't be whining about piracy.
Age and Treachery Spot on.
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.
@roywhiteo5 HAA HAAAA.... bump
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.
Ahhhhh, 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.
Since today is Black Friday for businesses then that would make next friday Red Friday for consumers.
January 22 is considered the most depressing day of the year. In addition to winter, short days, and no holidays for a month, it's the day that Christmas credit card bills arrive.
I love your comment , and if you don`t mind , I`m writing that one down :)
A very timely episode. Thanks for sharing this.
I am in my fifties and I attribute my wealth to the fact that I lived within my means, invested what I could and NEVER once owned a credit card.
Some people see credit cards as "evil" but they're not. People need to understand that credit cards are just that: cards that lend credit and expect that credit paid back. It's not "free money." Use your credit card like you would a debit card. In other words, don't use credit cards to purchase something you couldn't pay off at that moment (or at minimum, within the month). There are exceptions to this, of course, when it comes to huge purchases like cars or a house, but in most cases, try to use your credit card like you would a debit card.
Some people might ask, "If I do that, what's the benefit to using a credit card?" Well, the benefit is that you're not held liable for charges made if your card gets stolen (so it's much safer to use online), it's not directly attached to your checking account, and you can acquire a credit score (something that's vitally important in the US and Canada). Other benefits CAN include points or miles, but those are bonuses only. Some people seem to think these are scams, but they're not. It's basically a "thank you" for using the card on purchases you'd otherwise normally get anyway.
The biggest benefit, of course, is the credit score. Sure, you could take out a loan to do that, but credit cards are simpler to handle. If you pay back your bill on time and in full each billing cycle, you'll have a nice credit score if/when you need it later on, and most people will need it. To banks and lending institutions, having no credit score is even worse than having a bad credit score because you're an unknown to them. Not having a credit score can effectively cripple you later on when it comes to important, life-changing purchases and even some employers use a credit score to help judge applicants (although I think this is unnecessary for most positions).
So in a nutshell, credit cards aren't evil and they aren't scams so long as you act responsibly. Don't go on a massive spending spree (unless you can afford to pay it back right away) and always think, "If I had to purchase this right now with a debit card or cash, could I afford it?" If you can, go ahead and buy it on a credit card, but if you can't, don't do it unless you have absolutely no other choice.
I still have my original BankAmericard! Great story!
Glad we don't have time to hear it.
When I was a kid, in the 70s, I got a store credit card for my cat. Never used it of course. But yeah, they would extend credit to anyone back then.
I thought it was more difficult to get a credit card then...
Although I am a believer in Cash is King, this was a great episode on an enlightening topic. Thank you History Guy
Have to be pretty situationally unaware for that to happen. And its not going to happen.
Thugs are just as happy to steal your credit cards as your cash, they just quickly use them before they are reported stolen.
@@polomare2027 or just sell the cards, the information is not usless once cancelled it just cant be used exactly the same way.
@@hambonethegreat9547 Identity theft is a multi billion dollar crime.
The victim is left to fix their credit.
You can have cash on a bank card lol no reason to carry 5k on you or anything.
Hi History Guy, my husband and I are big fans of your channel! I would like to suggest that you do stories about Gen. George Rogers Clark because I think that not many people know about him and his contributions to the Revolutionary War and westward expansion. Also Simon Kenton and the nasty Simon Gerty would make good episodes. I learned a lot about them while researching my ancestry, so fascinating!
Every week I have some company or another trying to give me there credit card, im not sure how they got my phone number but I have started telling them I am so glad they called and I want the maximum limit available because I just lost my job and am looking at bankruptcy but with a big enough limit from them I’ll turn things around, they never want to talk after that.
You can write to the credit bureaus, and request you not be sent offers. It lasts for 7 years or something like that. Works perfectly.
Don Moore really? Thanks im for sure going to do that because it’s incredibly annoying, thank you Don
Awesome. Maybe a bit like me thanking telemarketers for their call, because it identifies them as a business that doesn't do a satisfactory-enough job to thrive from repeat customers, recommendations, and word of mouth.
numbereightyseven lol that’s a good idea I’ll have to remember that with the next telemarketer Call I get, thanks for the idea.
@@henryhenry3832 Of course. You could have Googled for that info. I also almost never get any marketing calls because my phone co. supplies telemarketer blocking.
Wow. You fill in all the gaps in history. Great job 👍
"Charge -a-Plate"
Haven't heard that since Mom passed, many years ago.
Yes, I have two of those charge plates. They are great conversation starters, an old Macy charge plate and one for Fedways ( a store in Amarillo, TX ).
Are they the same size as credit cards? I have often wondered why credit cards are the size they are - it is not a round number of inches or millimetres. Perhaps credit cards are the same size as charge-it plates.
My mom had one too, for Bullocks, a department store here in Los Angeles. And
@Lysander MB, charge plates were about one quarter the size of a credit card.
When I was a kid, my Dad who was an executive at a computer company (in the '60s!) had basically the Big 4: American Express, Carte Blanche, Diners' Club, and BankAmericard. It was a big deal to have credit cards back then - you had to have a solid job and a good income. They weren't nearly as widely accepted either. Being able to get cash from American Express was an important benefit at the time because of that, and because ATMs didn't exist yet.
Today, my American Express card (and some of my Visa/MCs) still offer the cash feature, but I've never used it. Today when I'm overseas I just withdraw some cash from my checking account in the local currency using an ATM, with no fee and a much better exchange rate than Travelex etc. Back then Dad had to go to an American Express office or at least a bank. He really didn't want to leave home without it! I still don't leave home without mine either :-)
we used to get books of numbers to check before running a card through the "knuckle buster." Visa would publish the book every week and scrupulous vendors would check for bad credit. Of course, if the line was long, who has time?
Some even paid rewards for bad cards.
Yes I think about $25 for seizing a card.
ONE more topic (of many) that SHOULD be taught in schools; credit, credit card us and how it all works and the HUGE pitfalls of credit cards. I remember reading somewhere that the average CC debt in the USA was $10, 000? GREAT educational and informative video.
keep them coming fine sir, I will gladly pay you Tuesday for a history lesson today
I started working retail (in Canada) in 1980. I remember the "chunk-kerchunk" machines very well. Thanks for another great & informative video. Another interesting facet to today's credit cards are the rewards programs.
I carry a petrol company card, a 2% cash back credit card and a bank debit/ATM card. I pay the credit cards off each month and carry very little cash. Credit cards are a great convenience and especially if you keep them paid off!
Many people do that these days- collecting points or rewards, buy paying off in full to avoid interest.
Australian banks operate via visa and MasterCard credit/debit cards they can be used just the same as a credit card but you get a choice of whether you wish to use borrowings/credit or your own account/savings EFTPOS.
We also are heavily into PayPass and the use of phones instead of cards I no longer carry cash and with mobile banking apps and online banking even if my card went missing for whatever reason I can log in to my bank account and cancel it immediately there is no delay its is right there and then.
But credit no is don't go there it's ruined my life once already stupid me.
I find I use my credit card for almost everything, even at McDonalds. BUT, the total amount owing is paid every month. Failure to do that is a sure path to financial disaster.
Another home-run! Bravo! I'm becoming addicted to history!
The bank keep upping the limit on my Visa. I keep wondering what I might do with it. :-)
I never buy anything I can't afford to pay cash for, but it's useful to smooth out the bumps. As well as for travel (handy) and for on-line purchases (almost essential).
I miss the days when the banks used to increase my limit. I haven't had a salary since 2003, so they are stingy with increases since my income comes from investments only.
THG with another great video, getting me interested in topics I'd never really considered, and thus why it deserves to be remember
I stand corrected, I came to believe that diners card was the first. Thank you, I learn.
An excellent, well researched presentation ... as usual.
Technology (UA-cam), when well used, can accomplish so much.
For the time invested, I have learned more from your videos than in many hours spent on other platforms, media or endeavors.
Kudos sir.
Keep your integrity and don't lose sight of the ball.
I bet over half the individuals who raked up large amounts on credit card debt LAST Christmas are still paying it off
I can't get enough of the way you fill my mind with little known history...thank you
"Don't leave home without it!" I interpret that as my concealed carry pistol.
...who would thumbs-down this? Thanks again mr. & mrs. History Guy
We have to remember that credit cards are by far most popular in North America, while being more rare in the rest of the world. The rest of the world mostly rely on debit cards, avoiding the whole idea of buying things on credit as an everyday event.
If you're responsible enough to handle it, credit cards are better for your financial situation than debit cards, because they provide benefits and are a good way to "passively" improve your credit score.
It's a dangerous tool, but a very effective one if used correctly and responsibly, just like any other dangerous tool.
TissuePaper the whole idea of a “credit score” is really absurd, and just a way to trap you in the system, with fear of repercussions if you don’t work on that score and even one failed payment (or system glitch) can have really dire consequences. It’s a very US centered thing as many countries don’t have anything such, and rightfully so.
@@SwitchAndLever Honestly, I didn't realize credit scores were a US thing. How do lenders in other countries determine your lending limit or your interest rate?
The way I see it, working on your credit score is just how you prove to a lender that you can be trusted to pay them back. Perhaps as an American I have a unique relationship with debt, but I fail to see a better way to finance important investments like an education or a home, and necessary expenses like owning a car (although I'm a firm believer in buying used cars instead of feeding the auto dealership monster we have here).
I'd be interested to hear how this personal finance stuff where you're from.
@@tissuepaper9962 there are plenty of ways. Equity being one, if you own a house for instance. If you heave a steady job with income every month is another. The idea that you have to "finance...an education" is also a completely foreign idea to most people in Europe at least. School is free in most countries here, which means no tuition, and you only have to pay for sustaining your own living situation, and possibly books and study material. Most people get a small student loan to do that, or work extra on the side or during summers. I spent 5 years in uni to get my masters, my student debt is not especially high, due to no tuition fees. The time to pay off is calculated until your retirement (67 years of age) so the rate you pay back every month is also pretty low. If you have a history of not paying your bills you can get demerits listed in a system, but it's not like a credit score as there is no sliding scale. There is no system that keeps track of people who are reliable, only those that are not, and you have to mess up quite badly to end up on that list. I guess here we have a system where you're innocent, and thus reliable, until the opposite can be proven, whereas the US does not. Moving to the US from abroad, and thus not having a credit score, makes it really hard to get a foothold in society since so much is built around credit, and you can't get good credit anywhere due to not having a score. Even building a good credit score from nothing takes years. Honestly I think it's an abhorrent system which keeps people locked into it in a way that suits banks and financial institutions, not that suits the consumers.
An excellent video as always. I have two credit cards in my wallet and knew only a fraction of what you covered. Now I have yet another interesting story to regale people with at parties in an attempt to get them to watch your channel.
Also, here's a topic suggestion: The history of the Wind Tunnel.
I was talking with an aviation friend about the Wright brothers and how they used Otto Lilienthal's air foil/wing design books which led to Orville crashing and nearly killing himself. That near-death experience prompting them to develop the wind tunnel for testing their own designs in the safety of a workshop. Then my friend and I got off on talking about how the wind tunnel changed the world of transportation and not just in the sky but all modes of movement. Where today some of the most powerful supercomputers in the world are used for aerodynamic simulations of aircraft, landcraft (automobiles/bullet trains), seacraft, and spacecraft. Olympic runners and cyclists subject themselves to wind tunnel test to design better track suits and cycling equipment to reduce drag. The legacy of the Wright brothers' wind tunnel will be with humanity for the rest of our existence.
Cheers
To this day I refuse to use credit cards. If I don’t have the money to buy something I have to wait until I save up for it.
Me too.
Chump Johnson It really doesn't matter except to your peace of mind, because the majority of people around you have abused the credit system to the point the whole system is about to fail and you'll be swept away in the total collapse. I will as well and that angers me.
Similarly, I have two cards, and always pay each month's bill in full. To hell with their loan-sharking!
What’s not being able to afford something have to do with credit cards? I think that you mean that if you are too stupid to be able to track what you charge and/or too undisciplined to prevent yourself from overspending...
I use a CC because I get Airmiles for every $10 I spend. I am one of the lucky ones where I can pay off my bill every month ... otherwise that would be a rather expensive flight when you calculate the interest on the CC!
I loved this episode. It brought up lots of childhood memories. I remember all the old commercials promoting their cards.
I carried an original Bankamericard back in the 70's. Made me feel all grown up but got expensive as time went by.
Very informative, did not know much of this. Also "Live withing your means" and do not spend money you do not have.
THG should have a million subs! Great history lessons for all.
I remember my grandfather having oil company credit cards that were msde of cardstock back in the early 70's.
I worked at a full-service gas station early 80's. Only accepted a handfull of oil and government cards. We had the inprinter for the cards, and a book that had bad card numbers to check that the csrd presented was good. Think a new book was sent each month.
We've come a long way since then!
He will be there soon, it was not that long ago he earned his first play button. Sharing him around like a venerial disease will ensure his second play button.
I am not sure about the behaviour of banks in the US but there was a time in Australia where banks would automatically bump up your card limit. In my case in the period of six months it went from three thousand dollars to seventy thousand dollars. I had family that worked in the banking system and I was aware that banks were trying their best to get people into debt cycles. Also they had a history of forcing the consumer to pay in the case of fraud. My experience in contract law was a god send. I sent a letter to the bank thanking them for all the additional credit and saying that I didn't need it. I stated that I would accept a liability of only up to $ 5000 no matter what circumstances and that they had two weeks in which to dispute these terms otherwise deemed accepted by the bank. Within two weeks I had a letter acknowledging that the limit on my card was set to $ 5000.00. The practice of automatic increases in credit limits was outlawed a couple of years later but it was this and other practices that generally made banks overall disliked in Australia.
It's crazy to think that until 1970, you could be mailed an already-activated credit card!
I don't remember that they were pre-activated. I think we had to call to say that we had received it before it would actually work. ATT wanted a copy of the first page of your 1040.
I noticed the dark jacket and bow tie on black Friday! Great video as always; thanks for putting out such great content.
"Life in plastic, it's fantastic!"
S. Mac come on Barbie, let’s go party!
@@johnp139 Lol...Ah, the 90s.
Until the bill comes!
When I finished grad school, I was immediately hired and earning a very high (for then) salary. But I had never owed money for anything, so had no credit history. It was difficult to stay in a hotel or to book an air ticket.
I told the person at my new employer's whose job it was to find a house for me of my new problem. She promptly called the president of the largest financial institution in the state. I can still remember his laughter as they spoke. Had a card delivered the following morning. In the 45 yrs. that have since passed, I have never paid a cent in CC interest and never will. I'm well-off financially and still drive my great 22 yo. car, don't buy things I don't need and that won't make me happier and enjoy a comfortable, worry-free life.
Suggestion: History of the skyscraper
I got to say, you never fail to surprise me with the Topics.
A show on Adrian Ashfield's development of the ATM would be good.
I started an IT job with Citibank Credit Card Services in 1980. They were just coming out of a crisis in 1979 when they had issued a large number of cards without the rigorous algorithms now used to confirm someone credit worthiness. They had a huge collections problem for awhile.
I once broke a customer's VISA card by not fitting it in the imprinting machine correctly then running the roller over it rather too enthusiastically. The main part of the card shot several yards across the shop floor :-/
Fabulous episode. So interesting. Thank you.
“History of modern enslavement”
JordaniusVonRhod agreed
What's the bible verse? "The borrower is slave to the lender" -Proverbs 22:7
Imagine characterizing your own extraneous spending as slavery. I CANNOT imagine the soft, privileged, ignorant life that leads to thinking this statement was anything other than idiocy masquerading as wisdom. Control yourself and dont take your morals from a thousands year old torture book, you'll all be better off. So sad to see humans being this far gone.
@dwiggins01 Poor Jeff will find out what slavery is if he lets his check debt get away from him. A simple but hard lesson.
Jeff Byrd my extraneous spending???
You need credit to buy houses, cars, and other essentials in order to survive and thrive in this American society.
If i didnt have to have a credit card i wouldnt have it...
Love the channel, found it not too long ago, but I'm almost caught up. I'm sure there's an incredible amount of suggestions for videos, so I thought I'd add to the pile. As a Basque American I'd love to see one on Operation Rügen and the 1937 bombing of Gernika by Nazi and Italian forces during the Spanish Civil War. The Great Emu War of 1932 would be a a fun one as well.
The precurser to Visa was called, in Canada, at least, Chargex
Interesting! Did not expect a topic like this. Not disappointed
Good video. Can you do a video on the History of Camp X " Britain's WW2 spy training camp where Ian Fleming (James Bond) was trained" Its located on the border of Oshawa / Whitby Canada. Also Robert McLaughlin was a Col at the time and the "Robert McLaughlin house" in Oshawa and his GMC car plant played a big part during the war effort. The men from camp X would go to his house to be entertained, Eat, had a bar for the guys and At one point emptied the swimming pool to do explosives training in it.
A rare factual error - the metal charge plates lasted almost until 1970, not ending in the '50s. I know because I graduated from high school in '65 and carried my own plate in the late '60s until it was ultimately replaced by the department stores' own plastic cards. The plates also had a convenient (albeit woefully insecure) feature. Notches along the top edge of the card designated in which stores the cards were accepted. Each store had its own notch position. The stamping machines in each store only accepted plates with the notch for that store.
Thank you, this was very interesting.
My cards give me flights and hotels. They are only ever used with funds to back them.
Someone assumed my identity last year and went through a *great deal* of money before it was detected. Having worked in this area in the past, I consider this credit card company's software to suck royally.
Why would I go to a certain famous store in London to buy a famous (and expensive) mobile phone and laptop, then go to another branch in London on the same day to repeat the process?
I shan't say who I worked for, but this would have set off red alerts everywhere in 1990.
Name them.
Very simple to pay off your card every month, regardless of income:
Do not spend more than your income.
Long term credit balances are typically getting charged 20% interest.
If you are carrying $1000 credit card balance you are paying about $100 a month interest.
What could you do with $100 more a month?
Yup, I have paid mine off monthly since 1988, and haven't had a job since 2003. Well said.
What you could have mentioned is that in Sweden people are going for chips implanted in their hands. Just like you do with a dog or cat. I guess in the future it will be no cash, no cards, no ID just a microchip.
That program has been being tested here in Florida for over a decade now. Only mindless groupthink followers will be willing to participate in such a system, but that describes half of the people in our society.
I will never accept it. Not ever. If such a cashless system of exchange is ever implemented on a mass scale, I will take what my family needs by force from the mindless lemmings.
Sign of the beast
@@rowdyrx6109 It has never been possible for a global ruler to institute a biblical anti-Christ style economic system in which dissidents would not able to buy or sell....until now.
Also of note, the 10,000 year old City of Damascus has never lain "in a ruinous heap"....until now.
you have the very best History video's sir Thank You for all your hard work..
What I detest in Australia is how half the companies here have sneaked in credit card fees on purchases. I think it is criminal that this is allowed when the interest rates on most credit card accounts is still above 20%. I believe that the gouging scourge was banned in the UK only a year or two ago which is great to see. No doubt the unethical practice will continue in Oz as the population here loves to get ripped off... seems to be a national pastime!
Some places here in the US charge you another fee for using a credit or debit card, some places up to 10%...Our DMV does that, I just write a check or pay cash there. I try not to use my credit cards anymore, I still have a couple but trying to get them paid off ASAP and get back on the debt free track, except for the home mortgage which has about 22 years left on it but hope to be able to start throwing extra money at that here really soon too and hopefully cut that in half at least.
@@wildbill23c gee buddy, thats equally scandalous. Funny, only the other day I had the same issue with a credit card fee at our DMV... a government agency! I protested but received the usual blank looks and shrug of shoulders.
I have noticed here in Oz the government is also passing laws to restrict the amount of cash one can actually use... unless I am wrong...(usually am!) the limit is going to be set at $10,000. The official line, as usual, is about anti money laundering, but most educated people know it is about control of the population and knowing where and when we spend our own legally earned cash. They are slowly forcing us to use our cards, and thus fees, by gradual legislation! Good luck with the home loan!
@@GaryNumeroUno Not sure how it is where you are, but our credit & debit cards now have chips in them which is supposed to make them more secure...yeah right after I got my new card about 3 days later my account was hacked, I had to call and argue with the bank for 20 minutes to get the money they stole back, and it took them 10 days to return the money to my account, yet the scammer was able to fraudulently drain my whole account with no questions asked...makes me think it was a 100% inside bank job...and those chips on your credit/debit cards are tracking your spending, what you buy, how much you spend, etc.
If you have a computer with a SMART card reader and the software to look at what is on that chip you'd be surprised the amount of personal data on that chip.
I can't get enough of this channel. This guy is awesome
I was just thinking the other day about how credit cards came about. I have a channel on history too!
I'm glad you mentioned that the future of the physical credit card isn't so bright. The development mobile payments by cellphone, which first became common in Japan by 2008-2009, really took off from 2014 on when Apple incorporated Apple Pay onto its iPhone 6 and 6 Plus models, and Google responded with the Softcard-derived Android Pay (today's Google Pay). And its adoption was helped with the huge scandal involving stolen credit card numbers from Target department store transactions in the second half of 2013, which accelerated the inclusion better security for credit card transactions, especially the required adoption of EMV-chip credit cards starting in 2015.
Interesting historical facts, I thank you for your research. If I may, the reason why credit cards and charge cards became so popular is because of the addiction known as instant gratification.
Another error is to say only the wealthy had access to credit in credit's early history. Up to the 1800s American farmers relied on local credit exchange to survive a drought or finance a new acquisition. It wasn't until expansion of estranged, capitalist modes of credit in the 1800s that local, personalized credit between neighbors died out. Yes, since antiquity there were large-scale debts for wars, early mills, or expansion of monoculture in colonies, but most transactions pre-1900s were small and personal.
I have one credit card and I carry a 0 balance. I think it is criminal for bank to charge the internet rates that they do.
Smart man!
I have 9 cards and a current balance of roughly $38,000. 😩
It's not the high interest rates that upset me. It's the fact that banks knowingly push easy credit on the stupid and the desperately poor, people they know will likely go down in a life ruining debt spiral.
Billy Shields m.barnesandnoble.com/w/the-total-money-makeover-dave-ramsey/1114868934?ean=9781595555274
@@Tmrfe0962 how much was spent and how much interest? Ehat did you spend it on? How much has that now cost you?
Bank Americard was the US brand. In Canada it was Chargex, which like Bank Americard was rolled up under the new Visa umbrella in the mid-70's. I've never heard the card imprinter referred to as a Zip zap, always knew it as an "imprinter".
The whole credit thing is a huge scam. I couldn't finance a home purchase, despite my VA benefits, because I didn't have enough of a credit history. By the time I built up a decent credit history, the homes in my area literally tripled in price. So I basically indepted myself and had to pay interest on that debt to qualify for a home loan that I can longer qualify for because of spiking prices. Brilliant.
Now it seems like everything requires a credit score, even if credit doesn't even apply. At the very least, you end up paying more for the same goods and services. Totally rigged system.
That's your fault then. How do you expect to get a mortgage with no credit history? I wouldn't lend 6 figures to anyone that didn't.
James Cook the trick is to not charge more than you can pay off in 1-2 billing cycles
It is possible to get a mortgage without having credit history. You just need a good broker who's willing to work with you and not mind that they will inspect all your financial history.
Move out of Seattle
You can use a mortgage company that does manual underwriting.
Lance/HG,
Another great video and topic - thank you! I remember my father having a Diners Club card in the 1960s and not many other people did.
God bless
Paul
Good one THG. Anybody wise take there credit card away from old lady from Oct. To Jan. 😀.
Automatic Teller Machines were invented before magnetic strip cards (9:11) and originally worked on one-time use cards for customers who needed cash on the weekend when banks were closed and tellers were off (the wild times when people didn't work on the weekends!)
My wife says I am on the cutting edge of credit cards.
Mine....chopped n dropped........freedom.
I love that you are a history geek! And I have enjoyed And liked👍every one of your videos! Keep up the good work!
Now how about a video on the history of "fractional reserve banking" and the Federal Reserve.... The engine behind the growth of credit, growth of the money supply, source of inflation, and resulting stealth taxation.
That would have to also delve into how capitalism needs money to flow and how hoarding at the top requires a growth in supply to keep running.
@@amak1131 and Mr. Collins: You are both very wise and know how it really works. The solution is to opt out where feasible. Don't play their game; don't fall for their malarkey. If we are tricked into believing we "need" this or that, we will pay more than its value to possess it, and still more to use, maintain and secure it. Others will bear the impacts of our use.
For years I wanted a 40-ft. diesel pusher motor home. No money down, EZ terms. I finally realized how incredibly stupid it is to drive around the country with a toilet and 60-gallon disposal system, shower and tub, refrigerator, stove, oven and microwave, sink and dinette, queen-sized bed, living room couch and recliner, two TVs with satellite and stereo, washer and dryer, and all the food, clothing, leisure and recreational doodads I could possibly use, going down the highway at 70 mph, thinking how FREE I would be. FREE until I realized the 100 gallon fuel tank would be empty in two days, the waste tank would fill up in three days, and I would have no idea where I was going to park that night. A mountain of cash can turn into a pile of crap real fast.
This motor home is a snapshot of the American economy. You can have it all. Enjoy it today. With easy credit, you won't have to pay until tomorrow. Emerging nations are going to honk and wave as they pass us by while we are stuck on the side of the road.
@@amak1131 Yes, historical trivia is fascinating and much of it is worthy of remembering, but there are some key, uncomfortable historical knowledge that really needs to be known too. And that is without getting into all the nebulous controversial theories....
In the late 60's I had a summer job at an Enco station pumping gas at the full service pumps, which included checking tire pressure, oil & water levels, and fan belt tension, plus cleaning the interiors and glass inside and out of cars that came in for service. Must have been 16, got my driver's license while I was working there.
We took credit cards, I no longer remember what type, ran them through an imprinter, and then checked them against a booklet made from very thin, strong paper that listed all the no longer acceptable bad card numbers.
Had pricing wars with a neighboring gas station dropping the price per gallon from the low 30 cent range to the high 20 cents.
I could never get a credit card, thus my hate for it. Still loved knowing about its history though...
Larry Cabz you should go home and rethink your life.
You’ll be fine.
I absolutely love this channel...
Credit cards one of the greatest evils perpetuated on mankind besides debt fiat currencies.
What else can be used? Most rare metals are abundant on space rocks and once we can harvest those, prices will tank.
Shut up debt pusher shill. We will dismantle the Federal Reserve and the Central banks.
This is very good. Thanks History Guy.
One must have both credit and a good credit history to do anything anymore. Your prospective employers, your bank, your mortgage company, your car dealership, your doctor and hospital, etc.
Another extraordinarily well researched and presented episode. Thank you History Guy.