Venice Area Homes Blog

head_left_image

A Good One On Bank of America... (You Needed a Smile)

Thank you Mike Jones of Tucson AZ for an interesting story on the history of the credit card.  I try not to use these anymore unless I am going to be able to pay in full at the end of the month.

Bloomberg: MasterCard hits 52 week high; Mike in Tucson, AZ mortgage lender

~ MasterCard Stock Hits 52 Week High August 3, 2011 ~

Okay.  You need a smile, and I'm here to help out.  Credit on demand was the stock market winner today, keeping the market from having its longest losing streak since 1978.

Do you know how Credit Cards came to be?  I have a Bank of America story for you...

The year was 1958.  Bank of America wanted to get into the credit card business.

Diners Club, the very first credit card, was established in NYC in 1950 by a man named Frank McNamara.  It was accepted at its outset by just 14 restaurants in New York, but within two years, companies had begun to realize the power of credit on demand, and Diners Club had grown dramatically in usage.  Some 400 restaurants and about 200 car rental agencies now accepted payment by credit card. 

McNamara believed that credit cards were a fad that would fade over time, and when he was offered $200,000 for his share of the business, he sold out.  (His heirs would like to turn him over in his grave.)

But I digress.  A man named Joe Williams was a Bank of America employee in California in 1958, and Joe had an idea.  Bank of America would corner the west coast market for credit cards by giving one, unsolicited, to every person in in the fine town of Fresno, California. 

Bank of America mailed out 60,000 credit cards.  (This was before people had credit scores.)  The fine print on the credit cards, each of which had a credit limit of $300, made the cardholder liable for all charges to the card, including fraudulent charges.  The bank couldn't lose.

If big is good, bigger must be better, yes?  Within 18 months, Joe Williams and his bosses expanded the credit card "drop" program dramatically, and 2,000,000 cards were sent, unsolicited, to citizens of California. 

Unfortunately for BofA, 20% of the cards immediately went delinquent.  "Hey," people thought, "free money!"  The bank was ill prepared to deal with delinquency on accounts where nothing could be repossessed.  They were even less prepared to deal with credit card fraud.

Bank of America lost nearly nine million dollars on its credit card launch, and Joe Williams was looking for employment elsewhere.  (See?  I told you I would make you smile!)

Bank of America recovered, but don't you wonder whatever happened to the BankAmericard?  Bank of America changed the name to VISA in 1976.

Today, we Americans have more than six hundred million credit cards in our pockets, wallets and purses.  Credit on demand wasn't a fad, and a card is swiped somewhere in the world ten thousand times each and every second!

I just thought you might like to know...  :)

_____________________

I'm Mike in Tucson, your preferred Tucson Arizona Mortgage Lender

NMLS #223495

SUNSTREET MORTGAGE LLC ~ Correspondent Mortgage Bank
Offices in Mesa, Tucson, Sierra Vista & Nogales

 

Venice FL Realtor Kari Battaglia Selling Homes in Venice

Helping buyers and sellers since 2004.  A Venice/Englewood Florida resident for almost 40 years, put my local real estate knowledge to work for you today.  My coverage areas include Southwest Florida include Venice, South Venice, North Venice, Nokomis, Osprey, Casey Key, Manasota Key, Englewood, Rotonda West, South Gulf Cove, Grove City, Placida, Cape Haze, Port Charlotte & North Port which are located in Sarasota and Charlotte Counties

 

Search Venice homes for sale www.FindVeniceFLHomes.com

What is my home worth?

What my customers have been saying

 

I absolutely would love to discuss with you how I can assist you with your real estate needs.  Remember I am never too busy for your referrals!

 

KARI BATTAGLIA, PA
REALTOR Broker Associate ABR AHWD CRS GRI SFR SRES
President Venice Area Board of REALTORS 2017
941-270-1851 mobile | Kari@KariBattaglia.com
  
 
Copyright©2017 by Kari A. Battaglia.  All Rights Reserved.  
Comment balloon 4 commentsKari Battaglia, PA • September 11 2011 10:13AM
A Good One On Bank of America… (You Needed a Smile)
share
Thank you Mike Jones of Tucson AZ for an interesting story on the history of the credit card. I try not to use these anymore unless I am going to be able to pay in full at the end of the month. ~ MasterCard Stock Hits 52 Week High August 3,… more
If They Could See Us Now!
share
Thank You P amela Cendejas, Second Self Virtual Assistance for a wonderful post on how much has changed from 1955 United States to 2011. It is certainly eye opening. A friend of mine emailed the following to me today. Thought you might get a… more
Not a Short Sale - Nokomis Florida
share
What a deal, cute as a button and clean as a whistle. Ready for you to move in. Nice backyard great for fun partys and BBQs. Minutes away from some of the areas most beautiful beaches, close to great shopping, local restaurants and I75… more
Under Contract in 5 days - Luxury Home Short Sale Osprey Florida The…
share
SHORT SALE This price allows you to start building your appreciation today. Your success will show in every room of this much sought after - rarely found courtyard home located in prestigious Oaks Bayside. Just south of Sarasota this… more
Short Sale Osprey Florida Waterfront Luxury Home The Oaks Bayside
share
SHORT SALE This price allows you to start building your appreciation today. Your success will show in every room of this much sought after - rarely found courtyard home located in prestigious Oaks Bayside. Just south of Sarasota this… more
Venice Florida Jacaranda West Area Over 12 Acres For Sale
share
Over 12 acres available next to tennis courts of Jacaranda West Country Club. Acreage includes lake. Jurisdictional wetland delineated (with county and state). Potential for 9 residential lots or one large estate. SWFTMUD approval. Parcel #0438… more
Just Sold North Port FL Short Sale Lakeside Plantation
share
Closed another short sale in North Port Florida in Lakeside Plantation. If you are considering a short sale please give us a call at 941-270-1851 to discuss all the options available to you to help you avoid foreclosure or visit our website… more
Search Venice Florida Homes For Sale
share
Search for homes right now : Use the search tools on this site to see all the homes for sale in Sarasota, Charlotte and Manatee Counties just like Realtors do for FREE. This site is loaded with powerful and helpful tools you will not find in any… more
Venice Florida Short Sales May Help You Avoid Foreclosure
share
Learn about Venice FL Short Sales and how you can sell your Venice FL real estate when you owe more than your home is worth! *Do you owe more than your Venice FL home is worth and need to sell your home? *Can you no longer afford your Venice FL… more
Venice Florida Short Sale Condominimum Casa Del Lago
share
SHORT SALE Exciting opportunity to own 3/2 with a garage end unit. This price allows you to start building your appreciation today. Ideal Venice Florida location--ride bike to our famous Venice Beach known as the "Shark Tooth Capital of the… more