Credit cards have come a long way from what they were and evolved into something completely different. It had all started with a concrete jungle bank in the mid twentieth century. The inventor of the first bank-issued credit card was John Briggs, a banker from the Flatbush National Bank of New York. Introduced in 1946, the card was called “Charge-It.” The catch was that a user had to have an account at Brigg’s bank and purchases could be made only locally. Technically, it was actually a charge card, because the bill had to be paid in full at the end of each month. Since then, credit cards have evolved into these complex financial instruments laden with traps and hidden costs written in lengthy documents not everyone likes to read. However, they are still important given factors like convenience, cashlessness and agility in payments. Moreover, they provide for additional security in transactions while keeping a complete record of spending. To some, it might also help with a boost in the credit rating and bonus flyer miles from time to time.
Millennials were the generation most likely to use credit cards for small purchases, according to CreditCards.com. About 21 percent of young people charged things for less than $5 compared with 16 percent for Generation X and 12 percent for baby boomers. But with a great amount of cash comes great responsibility. One act of carelessness and you can be caught in a debt trap. For these reasons, mobile applications like mTrakr have come like a lifeline. mTrakr keeps a track of all the transactions made via the credit cards suing just the text strings in the confirmation SMSs received. What’s more? It’s done without collection of any private or confidential data. Users can track their spending and even get personalised recommendations about which financial instrument might suit them best given their spending patterns. Technology, just like credit cards – has come a long way in making our lives simpler.