Overview
American Express was founded in 1850 by Henry
Wells, William Fargo and John Butterfield. It was started as an express
mail business in Albany, New York. By 1882, American Express had
extended to provide financial services with a money order business. In
1891, this financial services company launched Traveler's Check. The
company introduced their first credit card in 1958.
How It Works
After Diners Club, American Express was the next company to introduce
credit cards. When you use credit cards for purchasing, the financial
institution will credit the money to the merchant's account. The charges
to be billed will be assembled and sent to you at the end of billing
period. You can pay the entire amount as a single settlement or as
monthly installments with interest.
Benefits
There are many benefits in having an American Express credit card.
American Express is a well-known company and their credit cards are
accepted as a form of payment in many places around the world. American
Express now offers their credit cards in both secured and unsecured
versions. Customers who have less than perfect credit can still enjoy
privileges of American Express credit cards.
Cost/Pricing
Owning an American Express credit card typically involves paying an
annual fee, which varies from $30 to nearly $200 depending on the type
of the card you have. Other costs related to owning an American Express
card includes charges that are applied for exceeding the credit limit or
paying with a check that has insufficient balance.
Timing
The right time to get a credit card completely depends on
individuals. You should not make a decision just because the company is
offering free stuff. Some people suggest that the best time to get a
credit card is when you are ready to build a solid credit history. Some
advise to get a credit card when you are very young, which will help you
in building a good credit history. If you have good credit, it will
help you afford buying a home and other things. But it is always better
to buy a credit card when you think that you can be financially
responsible.
Companies/Industries
Most banks and many financial institutions offer American Express
credit cards through their institutions because American Express credit
cards are accepted worldwide. American Express also offers financial
services to many companies.
