Nidhi Upadhyaya: How we got hooked on credit cards

How we got hooked on credit cards

Today, credit cards are a $500 billion-a-year industry. Banks consider these lines of credit when deciding whether or not to approve loans, incentivizing customers to maintain multiple credit cards. So, how did this lending system originate? And how did they get to be so popular? Nidhi Upadhyaya digs into the history of credit cards in the United States. [Directed by Jeff Le Bars, JetPropulsion.space, narrated by Bethany Cutmore-Scott, music by Salil Bhayani, cAMP Studio].

Credit cards began as a clever solution for forgotten cash, but quickly evolved into a powerful financial force. What started with a cardboard card in 1949 exploded into a $500 billion industry, driven by interest payments and aggressive marketing. Today, most users do not pay their full balance each month, leading to mounting debt that surpassed $1 trillion in the US by the end of 2023. The journey from novelty to necessity has brought both flexibility and lasting financial consequences.