The credit card has been with us a long time now. They first came into general use in the 1960's and they have barely looked back since. Few people in the western world could open their wallet or purse without displaying at least one credit card and many would have four or five. So why have they become so popular?

If you had wanted to borrow money to buy something before the days of the credit card you would have had to approach your bank manager. He, since it was always a 'he', would consider the state of your finances and decide if he was prepared to allow you to borrow the money, or not. If he decided you couldn't afford it, that was it. You didn't get the loan.

Credit cards brought something new. A credit card is a flexible lending agreement. They gave control to the customer who once approved for a credit card could use it to get credit for purchases at any time.

Credit cards have become common place and are widely used. Many people hardly ever use real cash and any store that couldn't accept credit cards would struggle to be successful. Credit cards are part of our normal daily lives.

It is probably true to say that we have taken things a little too far. The ease of credit has enabled people to get themselves into debts that they struggle to repay but credit cards do offer a wonderful facility and make life a lot easier. If your car breaks down you can get it fixed on your credit card and pay later. Before credit cards you would have had to wait until you could find enough money. Credit cards have certainly made life easier.