Introduction

Credit cards have become an integral part of modern life, enabling individuals to manage their finances with greater flexibility. However, women's journey to obtaining credit cards has been a unique journey marked by challenges and advancements. This article explores the historical context and the significant milestones in the evolution of women's access to credit cards.

The Early Days of Credit Cards

The invention of credit cards has been a relatively recent development in the history of commerce. The first credit cards, such as Diners Club Carte Blanche, were initially designed for “travel and entertainment” and were mainly used by business travelers with expense accounts. These cards were primarily used for hotel reservations, airline tickets, and dining, without any credit limit. Due to the nature of these cards, they were not widely available to everyday women.

Department Store Cards and the Emergence of Female Consumers

By the 1960s, department stores began to offer their own credit cards. These store-specific cards were a convenient way for women, who were predominantly the shoppers and spenders in households, to manage their purchases. Unlike the early Diners Club cards, department store credit cards often carried a credit limit of between $500 and $2000. This not only provided a flexible payment option but also helped build credit histories for women who were often excluded from traditional banking systems due to gender discrimination.

The Rise of American Express and Controversial Growth

parallel to department store cards, American Express introduced its own Travelers Cheque (TE) card in the 1960s. This card was aggressively marketed to college seniors, with the belief that they would soon enter the workforce and require a TE card. The success of these cards led American Express to overtake Diners Club and Carte Blanche, becoming the most common form of TE card at the time.

Bank Cards and the Rise of Financial Independence

As the market for credit cards expanded, banks began offering their own cards. Banks would form partnerships with local businesses to accept their cards, thereby providing a wider range of acceptable payment options. Over time, these bank cards evolved into more flexible and general-purpose credit cards, such as BankAmericard (later renamed Visa), and Mastercard.

The Journey of a Single Mother: A Personal Perspective

Despite the advancements in credit card technology, many women still faced challenges, particularly those who were single. For instance, my mother, a single mother raising five children, was initially unable to secure a credit card due to her single status and role as a single income earner. Her journey to obtaining a credit card began at a Woolworth’s store. One summer, the store manager's wife invited my mother to their office and offered her a credit card. This was a turning point in my mother's life, providing her with the financial flexibility needed to manage her household expenses.

Challenges and Controversies

The growth of bank cards was not without its challenges. Banks often emphasized the highest profit margins, leading to aggressive lending practices. In the 1970s, bank officers who were too stringent in approving credit cards were often reprimanded, as tighter standards were viewed as detrimental to business growth.

Conclusion

Women's access to credit cards has been a journey fraught with challenges but also marked by significant milestones. From the initial hesitant steps taken by department stores and the aggressive marketing of cards like American Express, to the evolution of bank cards, women have gradually gained greater financial independence. The story of my mother, a single mother who received her first credit card, highlights the personal and societal changes that have occurred. As we move forward, it is crucial to understand and appreciate these historical advancements in financial inclusion.

Footnotes

1. BankAmericard: A precursor to modern Visa and Mastercard, which allowed cardholders to carry a balance under a credit limit.

Bibliography

[1] Smith, J. (2021). History of Credit Cards: From Diners Club to Visa. Historical Perspectives on Payments.