How to Save Money and Enjoy the Convenience of Using a Credit CardThe use of credit began centuries ago when a person needed to purchase an item but did not have the money that time. The general store clerk kept this information on an “armband” that he wore around his wrist. Eventually the information was controlled by lenders and traders, these were called mutual protection societies and round tables. The problem with this type of tracking is that the scope of control was limited to small regions, making it difficult for businesses to protect themselves against bad debt. For example, a customer could establish a credit balance in several regions, controlled by different protection companies; different regions had no way of knowing if a customer had multiple lines of credit in other regions. A third-party credit reporting agency (CRA) was established in the 1830s. Nationally, it was established as a franchise. They were different from “mutual protection societies” in that they allowed others to access credit information for a price. They were only aimed at: their subscribers, consumers, correspondents of company branches and the general public, according to Obringer (2002). In the 1920s, the first credit card was created in the United States. According to Encyclopedia Britannica (2002), it could only be used by credit card companies. In 1950, Diners Club, Inc. was the first to introduce a universal credit card that could be used by various stores and businesses. Customers were charged an annual fee and monthly billing. In 1958, American Express was the second major credit card company to issue a universal card with its famous quote: "Don't... in the middle of a sheet of paper... give 45 days' notice." Card companies should ask cardholders if they want overdraft protection. Invoices must be mailed 21 days before the due date, according to Randal (2009). The reason there is a credit score is to show how reliable a person can be in paying their bills on time. There's a lot more going on behind the scenes than just numbers. These numbers actually rely on the person's character, which is why your information is used by your employer, a lender, and an insurance company. The credit card company is in the business of making money. You have the power in the relationship to use the credit card to your advantage. You can also go online to Credit Karma to check your score for free or sign up with Identity Guard if you're interested. If you're a Costco member, it's only $10 a month. You have the option to track your information to monitor your credit score