Good afternoon, and welcome back to ToTheUnknown,
The newsletter that’s worth reading even when you don’t feel like it!

Once upon a time, there was a shiny piece of plastic that promised the world… and sometimes delivered it.

Other times, though?

It dragged people into a debt spiral that felt like quicksand.

But here’s the thing: credit cards aren’t the villains in this story. They’re just tools. It’s how you use them that decides if they’re your best ally or worst enemy.

Some folks say credit cards are bad—dangerous even. Usually, it’s the same people who don’t know how to manage their finances or who treat a credit card like free money (Spoiler: it’s not).

Sure, if you swipe without thinking, debt can snowball faster than holiday shopping bills.

But if you play the game right?

Credit cards are financial superpowers.

Think free travel, cashback, and that all-important credit score—credit cards can be like cheat codes for life.

Every successful person I’ve learned from says one of their biggest regrets is not getting a credit card sooner. And after diving deep into the credit card game, I’m even eyeing a starter card myself (because of the credit score)

So, how do these shiny little cards actually work? How can they trap you? And most importantly, how can you make them work for you instead of against you?

Let’s dive into the origins, the traps, and the superpowers of credit cards:

• The Origins: From Clay Tablets to Platinum Plastic

• The Trap: A Debt Spiral Waiting to Happen

• The Superpower: Making Credit Cards Work for You

• How to Master the Credit Card Game

The Origins: From Clay Tablets to Platinum Plastic

The story of credit cards starts way back—like really back. Around 2000 BCE, ancient Mesopotamians used clay tablets to track debts and trade goods. Money was heavy, and large-scale trade required a system of trust. Merchants and farmers worked on an early form of credit, relying on written agreements to settle accounts later.

These clay "credit slips" were the grandfathers of today’s credit cards.

Fast forward to Babylon, where King Hammurabi’s famous code (circa 1754 BCE) laid down some of the first laws for lending and credit. Rules about repaying loans and penalties for defaults were the ancient world’s way of keeping everyone honest.

Sound familiar?

Modern credit card agreements aren’t much different.

In the 1800s, American merchants introduced "charge coins"

—small metal discs stamped with customer IDs. Department stores used these to track purchases made on credit.

By 1934, American Airlines introduced the Air Travel Card, letting frequent flyers book tickets and pay later. That card was the blueprint for today’s travel rewards.

Then, in 1950, the first modern charge card was born. The Diners Club Card came from a simple problem: its inventor, Frank McNamara, forgot his wallet while dining out.

Determined to avoid that embarrassment again, he created a card you could use at multiple restaurants. By the end of its first year, the Diners Club Card had 20,000 users and was accepted at 285 restaurants.

It was revolutionary.

Meanwhile, American Express launched its first charge card in the U.S. and Canada.

At first, the card was purple cardboard, but by 1959 it had become the green plastic card we know today.

The 1960s and 1970s saw an explosion in credit card innovation. Bank of America’s BankAmericard (now Visa) and the Interbank Card Association (now Mastercard) turned credit cards into global tools. Magnetic-stripe technology arrived in 1969, and suddenly, cards could be used worldwide.

The concept of rewards took off in the 1980s, with frequent flyer miles and cashback becoming huge draws.

By the 2000s, competition among issuers was fierce, and credit cards evolved into power-packed financial tools. From luxury perks to robust fraud protections, they became more than just payment methods—they became status symbols.

As credit cards continued to gain popularity around the world, fraud became a larger concern.

EMV chip technology — the "EMV" stands for Europay, Mastercard, and Visa — debuted in Europe in the mid-90s.

This technology, which has since become commonplace on credit cards, creates a unique transaction code for each purchase to help mitigate the risk of fraud.

While most cards continue to offer the traditional magnetic stripe on the back, many payment processors insist that you use your card's chip instead of swiping

The Trap: A Debt Spiral Waiting to Happen

Credit cards can turn into a financial nightmare if you don’t handle them carefully. Here’s how they can trap you:

1/ Minimum Payments = Maximum Pain

Let’s say you spend $500 on your credit card. When the bill comes, you see something like this:

Sounds great, right? Wrong.

If you only pay that $25, the rest ($475) starts collecting interest—often 20% or more. Over time, that $475 grows into $600, then $700, and so on. Paying the minimum is like trying to fill a bathtub with the drain open—it feels endless.

2/ Impulse Spending = Trouble

Swipe, swipe, swipe. It feels so easy to spend with a credit card because you don’t see the money leave your account immediately. Bought a new gadget you didn’t need? That dopamine hit fades fast, but the bill sticks around.

3/ Hidden Fees = Sneaky Costs

Late on a payment? That’s a fee.
Bought something in another country? Another fee.
Withdrew cash using your credit card? Yup, that’s a fee too.

Credit cards come with a lot of fine print, and if you don’t read it, those fees can add up faster than you think.

The Superpower: Making Credit Cards Work for You

When you use them the right way, credit cards are like having a secret weapon in your financial arsenal.

1/ Travel for Free

You know that one friend who’s always flying first class or staying in luxury hotels? They’re probably not paying for it. They’re using points and miles earned from credit cards.

Here’s how it works:

• Sign-up bonuses: Some cards give you thousands of points just for opening an account and meeting a spending requirement.

• Rewards: Earn points or cash back every time you shop. Over time, those rewards add up to free flights, hotels, or even cash in your pocket.

2/ Build Credit, Unlock Bigger Opportunities

Your credit score is like your financial reputation. A good one means banks trust you and offer better deals:

• Low-interest loans for big purchases like a car or house.

• Premium credit cards with insane perks.

And how do you build a good credit score? Simple:

• Pay your bill in full every month.

• Never spend more than you can afford.

3/ Perks You Didn’t Know Existed

Credit cards come with hidden benefits like:

• Free extended warranties on products.

• Refunds if something you buy gets lost or stolen.

• Free access to fancy airport lounges (some cards even offer free food and drinks there, and trust me, the lounges are amazing).

How to Master the Credit Card Game

Want to make credit cards work for you?

Follow these rules:

1/ Treat It Like a Debit Card

Only spend what you already have in your bank account. If you can’t pay off the full balance at the end of the month, you’re spending too much.

2/ Start Simple

If you’re new to credit cards, pick a beginner-friendly one with no annual fee. Once you get the hang of it, you can upgrade to a rewards card or travel card.

3/ Learn the Rules

Take time to understand how credit cards work.

Key things to know:

• Interest Rates: If you don’t pay your balance in full, you’ll owe extra money.

• Grace Periods: Most cards give you 20-30 days to pay off purchases without interest.

• Deadlines: Always pay on time to avoid late fees and damage to your credit score (on credit card websites there is a option to autopay every month).

Hope this gave you a better understanding of the credit world! If you’re still feeling unsure, I highly recommend subscribing to Daily Drop.

This newsletter breaks down the credit game (and much more) in a super simple and entertaining way. It’s helped me spot patterns, avoid traps, and level up my knowledge.

Now, enjoy the holidays while they last because soon enough, it’s back to the trenches to grind it out!

Oh, and by the way—I’m working hard to finish the GYM Guide for 13–18-year-olds before the year ends. Stay tuned for that!

Until then, stay focused, stay learning, and I’ll catch you tomorrow!