Although bank credit cards are a relatively recent innovation, typically marked by the establishment of the “businessman’s Diner’s Club card” in 1950, U.S. society has historically depended upon the availability of consumer credit. For example, farmers depended on store credit before the harvest of their crops in rural America, whereas industrial workers were issued “script” for purchases in the company store that were later deducted from their wages. Significantly, both forms of consumer credit often produced a form of debt/labor servitude. This common experience was recounted in the famous lyrics of Tennessee Williams, “I owe my soul to the company store.” (more…)

When you loan money or charge an item to a credit card, you are using cash loan or credit. Credit is an arrangement to receive cash, goods, or services now and pay for them in the future. Consumer credit is the use of credit for personal needs. It is also an indicator of consumer spending and demand. A common form of consumer credit loan is a credit card account issued by a financial institution. (more…)