A Closer Look at the History of Credit Cards

Have you ever wondered how credit cards came to be? If you have then, join us as we take a close look at the brief history of these credit programs.

Where Did Credit Cards Originate?

Although the concept of credit has existed long before the first banks have been established in Europe, credit cards were only introduced in the US market, in the year 1920. Car owners back then were given cards they used for purchasing fuel.

But there was a catch – they can only use their cards in the gasoline stations and centers that issued them. Good thing that in the year 1938, most firms decided to accept cards even from their direct competitors. And the rest, as we all say, is history.

In 1950, the Diner’s Club introduced the very first multi-purpose credit card. Such card programs gave consumers the ability to transact business, even without cash. All they had to do was charge their purchases, bills, and expenses on their credit cards. Then, at the end of the month, they will simply settle the transactions made on their card accounts.

In 1958 with the launch of the BankAmericard by Bank of America,​ credit card usage in the US grew rapidly.  It was the first successful revolving credit financial system in the United States, where consumers could carry a balance month-to-month, paying a finance charge on the unpaid balance.

The success of BankAmericard led to its rebranding as Visa in 1976, which further expanded its reach and influence, both nationally and internationally.

Credit card usage around the world in order of country that uses credit cards the most

1. United States
   • Credit Card Debt: Among the highest globally, with an average debt of $7,300 per cardholder carrying a balance​.
   • Credit Score System: Uses the FICO score model, which ranges from 300 to 850​ 
   • Credit Card History:  Credit cards were first introduced in 1958 with the launch of the BankAmericard by Bank of America, which later became known as Visa​ 
2. Canada
   • Credit Card Debt: Average credit card debt is around $4,000 per cardholder​  
   • Credit Score System: Similar to the U.S., Canada uses credit scores, primarily the FICO model, with scores ranging from 300 to 900​
   • Credit Card History: Although the specific year credit cards were first introduced isn’t readily available, the widespread use of credit cards followed similar trends as in the United States, given the close economic and cultural ties.
3. South Korea
   • Credit Card Debt: Median credit card debt is approximately $1,815​  
   • Credit Score System: Uses a credit scoring system similar to the FICO model, though detailed range specifics are less frequently discussed in international summaries.
   • Credit Card History: Although the specific year credit cards were first introduced isn’t readily available, the widespread use of credit cards followed similar trends as in the United States, given the close economic and cultural ties.
4. Hong Kong
   • Credit Card Debt: Median credit card debt is about $1,935​  
   • Credit Score System: Hong Kong has a credit scoring system that ranges from 1 (low) to 1,000 (high), somewhat akin to the FICO system​  
   • Credit Card History: Credit cards became popular in the late 1970s, coinciding with Hong Kong’s rapid economic growth and development as a global financial center.
5. Norway
   • Credit Card Debt: Median credit card debt stands at $1,964​  
   • Credit Score System: Utilizes a credit score system; however, specific details about the model and range are less commonly detailed in international credit reporting summaries.
   • Credit Card History: Credit cards were introduced around the same time as in other Western countries, likely in the 1970s, following trends in Europe and North America.

Now, more than 90 years from the time the use of cards have been first employed by gas stations, we still enjoy the great benefits of managing credit cards, especially for covering the costs we incur, on a daily basis.