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Established Contributor
Cory
Posts: 671
Registered: ‎03-15-2007
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The History of Credit Cards, what is the Differences Between Credit Card Companies, and Banks?

Hello,

 

This is all new information to me, but what is the difference between the saying, Credit Card Companies and Banks? Will Credit Card Companies be Discover, American Express, Visa and MasterCard? I thought that neither one can be issued without a bank being behind it. And that Discover, American E. Visa and MasterCard are just symbols on your card.

 

I guess I'm really trying to figure out the following:

 

1) What is the history on Credit Card Companies?

2) How did they get their start?

3) How have they revolve in modern day times?

4) Is it true that banks are the primary funders of Credit Cards, or Credit Card Companies have their own Capital, or both?

 

Just trying to put the puzzle together. I was born into credit cards, using and sometimes abusing them, but not having a knowledge of how they actually work and how they all got started. It would be very interested to learn about this and put it all in perspective. Thanks for reading.

 

P.S. this is not for my essay or history class lol. However, I might use this in the future.

 

Cory

1. American Express Blue Cash Preferred~2. BankAmericard Cash Rewards World MasterCard~3. BankAmericard Travel Rewards Visa Signature ~4. Discover It~5. Citi Forward Visa Signature~6. CCCU MasterCard.
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: The History of Credit Cards, what is the Differences Between Credit Card Companies, and Banks?

[ Edited ]

Sometimes nothing....a bank is a credit card company.  A credit card company may not be a bank (which means the underlying credit may actually be issued by a separate bank in partnership with the CCC, but maybe not).

 

I would think the main difference between CCC and bank is that a CCC issues credit cards.  Banks are in the credit business, including all types of loans, but are also in the deposit accounts business also.  Banks are generally FDIC which provides regulation to the general finances and activities of a bank.  A CCC, if not a bank, has to only comply with lending and consumer laws related to the CC industry.

 

 

Message Edited by txjohn on 03-31-2009 12:03 PM

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Regular Contributor
Credit_repair
Posts: 157
Registered: ‎01-30-2009
0

Re: The History of Credit Cards, what is the Differences Between Credit Card Companies, and Banks?

txjohn,

 

The scores in your signature line give me hope... that I can some day attain the 800 score - as you have.

 

Great job on the Score! From the 500s to 810/814 in 3-4 years!!!

Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: The History of Credit Cards, what is the Differences Between Credit Card Companies, and Banks?

They won't stay there for long.  I expect I'm gonna get dinged 50-100 points in next month.  I used current scores to app for better cards/credit last week.  So, will have several new accounts to push me down for a while.  But, that is what I have been building it up for.

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Senior Contributor
MattH
Posts: 3,240
Registered: ‎04-03-2008
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Re: The History of Credit Cards, what is the Differences Between Credit Card Companies, and Banks?

http://www.bankrate.com/brm/news/Financial_Literacy/credit_help/history_of_credit_cards_a1.asp?caret=120b

 

 

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Established Contributor
Cory
Posts: 671
Registered: ‎03-15-2007
0

Re: The History of Credit Cards, what is the Differences Between Credit Card Companies, and Banks?

Thanks guys and gals.

 

Cory

1. American Express Blue Cash Preferred~2. BankAmericard Cash Rewards World MasterCard~3. BankAmericard Travel Rewards Visa Signature ~4. Discover It~5. Citi Forward Visa Signature~6. CCCU MasterCard.
Senior Contributor
MattH
Posts: 3,240
Registered: ‎04-03-2008
0

Re: The History of Credit Cards, what is the Differences Between Credit Card Companies, and Banks?


Cory wrote:

Thanks guys and gals.

 

Cory

 

"I don't need more credit, I just need a higher paying job". And I'm through with large financial institutions, and will only deal with Credit Unions

 

 



Cory, your sig block does an excellent job of encapsulating the middle-class squeeze.  For several decades economic growth has mostly gone to the upper income brackets.  For a while median household income continued to rise by an increase in the number of two-income households, but for the last decade or so most growth in consumer spending has been borrowed as people thought asset values could take the place of savings.

 

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Established Contributor
Cory
Posts: 671
Registered: ‎03-15-2007
0

Re: The History of Credit Cards, what is the Differences Between Credit Card Companies, and Banks?


MattH wrote:

Cory wrote:

Thanks guys and gals.

 

Cory

 

"I don't need more credit, I just need a higher paying job". And I'm through with large financial institutions, and will only deal with Credit Unions

 

 



Cory, your sig block does an excellent job of encapsulating the middle-class squeeze.  For several decades economic growth has mostly gone to the upper income brackets.  For a while median household income continued to rise by an increase in the number of two-income households, but for the last decade or so most growth in consumer spending has been borrowed as people thought asset values could take the place of savings.

 


 

Hi MattH,

 

Sometimes I get caught in the mix of getting new credit accounts and higher limits, but what is a $25,000.00 credit card to me (Cory), if I can't come up with the income to back it up. In other words, there is no reason for me to bragg and max out a $10,000.00 credit card, and can't pay it off at the end of the month.

 

There's no point of me driving around laughing at the thought that I have excellent credit, and a bill is coming in every month for the minimum payment, and ten more payments to go. But at the same time, I see something else I want to buy, and get paralyzed with the thought that I'm going to add to the existing debt. This is no way I want to live my life.

 

So I told myself from now on, I really should not care about the credit limit, but seek more income, a better job, or get paid more on my current job. Then I can feel superior and confident that no creditor has the edge over me.

 

Please don't take any offense to my statements, this is just my own experience. I'm only replying, because I felt the need to explain in greater detail. All I'm saying is that I can see clearly now, the rain is gone:smileywink:

 

Have a great day!

 

Cory

1. American Express Blue Cash Preferred~2. BankAmericard Cash Rewards World MasterCard~3. BankAmericard Travel Rewards Visa Signature ~4. Discover It~5. Citi Forward Visa Signature~6. CCCU MasterCard.
Senior Contributor
MattH
Posts: 3,240
Registered: ‎04-03-2008
0

Re: The History of Credit Cards, what is the Differences Between Credit Card Companies, and Banks?


Cory wrote:

MattH wrote:

Cory wrote:

Thanks guys and gals.

 

Cory

 

"I don't need more credit, I just need a higher paying job". And I'm through with large financial institutions, and will only deal with Credit Unions

 

 



Cory, your sig block does an excellent job of encapsulating the middle-class squeeze.  For several decades economic growth has mostly gone to the upper income brackets.  For a while median household income continued to rise by an increase in the number of two-income households, but for the last decade or so most growth in consumer spending has been borrowed as people thought asset values could take the place of savings.

 


 

Hi MattH,

 

Sometimes I get caught in the mix of getting new credit accounts and higher limits, but what is a $25,000.00 credit card to me (Cory), if I can't come up with the income to back it up. In other words, there is no reason for me to bragg and max out a $10,000.00 credit card, and can't pay it off at the end of the month.

 

There's no point of me driving around laughing at the thought that I have excellent credit, and a bill is coming in every month for the minimum payment, and ten more payments to go. But at the same time, I see something else I want to buy, and get paralyzed with the thought that I'm going to add to the existing debt. This is no way I want to live my life.

 

So I told myself from now on, I really should not care about the credit limit, but seek more income, a better job, or get paid more on my current job. Then I can feel superior and confident that no creditor has the edge over me.

 

Please don't take any offense to my statements, this is just my own experience. I'm only replying, because I felt the need to explain in greater detail. All I'm saying is that I can see clearly now, the rain is gone:smileywink:

 

Have a great day!

 

Cory


 

Your philosophy sounds very sensible, and I like your reference to a great 1970s song -- you must also be of my generation!

 

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it

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