History of credit cards can dates back to 1915 America. Credit cards were first distributed by department stores, catering industry, entertaining industry and petrol companys not financial institutions.In China credit cards became popular only when the new millennium came according to the statistics. It spread very fast with a surprising speed of which jumped from 3 million to 122 million in merely 5 years from 2003 to 2008. In the past credit cards are distributed only by Chinese banks in China. But now this service can legally be provided by foreign banks.

Generally speaking college students or people who have a steady income can apply for a credit card. You just need to fill the application form and provide some printed version copies of your identity certificate or things like that. The aspects which the bank may take into consideration include your personal financial situation your former credit card using record and your exact possessions. Each bank has its own examine standard. Access differs from the max amount of loans to the type of the credit card. Sometimes your application may be rejected by one bank and admitted by another one.

Credit card offers a simple kind of loans service. And it doesn’t transact through paying cash. Your bills will be recorded in a computer system. Money in your account will be deducted at a fixed date. If there is enough money they (the bank) will take it at one time. But if you have spent too much and there is less money in your account you then have to put enough money in your account. You will have to pay the interests if you failed to pay for your bill within 20 days, or maybe, a month. Interest grows bigger as days go. In the second month and the following months after the none interest period the interest doubles. This differs from different areas. There is not an international unified standard. There are some points you need to pay attention to. It seems to be convenient and safe by swiping your card at the counter and dabbing in your password. But problems still exist. One is that since the institution is functioning by humankind then problems are unavoidable.

Technology had made anything possible. There was no entirely perfect defense and there won’t be. In June 2005, Card Systems Solutions, Inc. an America credit card managing and trade center was invaded by hackers. About 40 million pieces of data were stolen. That was a big loss. Another problem is that credit card is made from substances which are not environmentally friendly and may cause cancer. One last thing, your credit card is limited to your own access. And it is against the appointment to lend it to another person.

In China there may be some peculiar appearance. One is that in supermarkets the queue often seems to be quiet long when you want to pay with your credit card. It takes more time to do so than paying with cash. It’s convenient to take a card with you but it takes more time at the counter. Advantages and disadvantages are mixed up and then compensate. Another is that when you buy things in a small shop or have your meal at a greasy spoon you couldn’t pay with your card. There is no facility available in these places. Cash is more persuasive.

There are some main institutions which distribute credit cards. They are MasterCard International, American Express (AE), Diners Club, Japan Credit Bureau (JCB) and Discover Card.