The concept of credit cards came into fruition just before World War I when Western Union provided some of its customers with a deferred-payment service. But it wasn't until the 1930's that we saw the origination of actual credit cards in the United States. Their use became widespread during the 1950's. Diners Club issued a card in 1950 that could be used in various locations.

The idea became very popular and soon banks got into the act. While early credit cards usually required payment in full in less than 90 days, bankers saw other income possibilities. They could extend the repayment period and attach an interest rate, thus creating a new profit center. In 1951, the Franklin National Bank in New York introduced the first modern credit card to its customers.

Today, Americans love to use their credit cards. According to November 1998 Federal Reserve Board statistics, the total American credit card debt exceeded $550 Billion.