Swipe that Card
On October 29, 1999, it was known as Black Tuesday the day when the stocks began to slip. This triggered many investors to begin to panic. The stock market crash making 15 billion lost in one day. Banks began to collapse due to many numerous loans made, these lead stock speculators to a recession and also the closing of many banks. During 1929, 600 banks close then in 1933, 11,000 or two 25,000 Banks closed. It is known that one of the causes of the great depression was the easy credit access. This idea about credit leads many people to have a mindset of "buy it now and pay later" meaning that you don’t have actual money to buy the things they wanted. As debt increase that leads spending to decrease. But then many things changed as our new president Franklin D. Roosevelt was elected he change many things one of the new ideas he added was the bank holiday this happen on March 6, 1933, banks were closed until they passed inspection also emergency banking bill was passed on March 9, 1933, banks had to mean financial obligations of their customers to be allowed to reopen. Also, FDR made the new deals this allowed the government to assist American people to form relief, recovery, and reform. One very important new deal that was created what is the Federal deposit insurance cooperation this allowed banks deposits to be eligible against loss in the event of a bank failure and regulate practices and change banks work with money. It does exist today it allows our depository insurance and banks to be secure. Due to all the problems that were caused by credit and the closing of banks how has the United States change the way use credit now.
Well now in today society many major banks now launch their own consumer cards but instead of their users having to pay a bill for each month, they offer bank cards that truly become actually credit cards by offering a revolving credit that allowed there their customers to a monthly balance forward for a finance charge. The first bank company to do this was Bank of America. In 1966 the Bank of America card went national to become the first lesson general purpose credit card later it would be renamed as Visa. But then later in 1966 the inter-bank card association soon created the nation second major bankcard called MasterCard. But now everyone has an iPhone and just in 2014 Apple introduced Apple Pay this was the first mobile payment technology that now is widespread use. Now it’s certain that any teens today may rarely use a physical credit card now with the new card payment app embedded into our smartphones. But also now that the holidays are coming especially Christmas year many people use credit cards to buy gifts for everyone but pay them later. People might look wealthy but sometimes they can be completely broke.
Nowadays many people have what is called a credit score a number that lenders use to see if loaning you money would be a good or bad idea also, these scores are what banks, and credit card companies and other institutions see if your likelihood to pay or will be able to pay off any debts that you accumulate. The higher your credit score is that indicates that your current financial position and your history behavior and demonstrates the willingness for you to pay off your loans. Now in the US credit score systems, you hear the most about is called FICO score this particular score is used by major credit agencies. Credit scores are mainly used when you’re buying a new car or you buying or a new house. They also like to see your credit level or your credit quality, for example, poor credit is considered anyone lower than a 630 score average or fair credit would be between 630 to 690 good credit is between 692 to 720 and an excellent credit if anything above 720. So as you can see now that credit cards have evolved, many banks were loaning out money to everyone and increasing debt. Now you have to have a good credit score to be able for lenders or bank companies or even the bank to loan you this is a very good thing because now people can’t keep asking for more and more money and go more into debt now they are restricted depending on their credit score.
Overall we can see that the evolution of credit has changed so much and in a very positive way as we know in the beginning when our country was in a great depression our president FDR use recovery, reform, and relief to help solve the economic issues. But as the years have gone by now we can see how our credit has changed to credit score and that our credit score is very important and it can show many things like if we are able to pay our debts back or not, and if the bank should loan us money or a lender. Also, technology is evolving and now we can use our proper own phones to use our credit card and not as much our card. But without our President, Franklin D. Roosevelt helping this credit crisis to be fixed who know's how America would be today.
https://www.valuepenguin.com/credit-scores
http://content.time.com/time/nation/article/0,8599,1854569,00.html
http://www.hanford.gov/page.cfm/Famous/Roosevelt
https://www.csmonitor.com/Business/Saving-Money/2016/0205/Shop-wisely-with-these-six-great-store-credit-cards
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