This story ran in the Houston Post on April 2, 1967, just a year after U.S. banks joined together to create the first general purpose credit card. Consumer credit wasn't new - department stores offered charge plates for their customers in the 1920s, Diners Club debuted in 1950 and American Express launched its version in 1958 - but the new bank-issued products in the 1960s hoped to expand the practice of instant credit to well-heeled consumers. Today, about 72 percent of all U.S. adult consumers have at least one credit card.

Bank of the Southwest will begin offering certain qualified Houstonians an immediate line of credit around the world Tuesday when the bank initiates its Executive Credit program.

The banking service in conjunction with American Express Company's bank credit card program, will give card holders world-wide credit of at least $2,000, charge privileges and services of the American Express credit card, A.G. McNeese Jr, Bank of the Southwest board chairman, announced Saturday.

"Executive Credit was designed for the convenience of professional, management and sales people who travel and entertain extensively and who need immediate cash or credit without having to make separate applications each time a loan is needed," McNeese said.

IN 1959, TEXAS National Bank introduced a credit card service called Charge Plan. It was sold by the bank shortly after the bank merged with the National Bank of Commerce.

Under the new Executive Credit Plan, Bank of the Southwest will activate an unsecured loan at any time and in any amount up to the credit limit established when the card was issued.

Card holders can have funds transferred to their checking account or can purchase cash or travelers cheques at any American Express Co office, drawing on their line of established credit, McNeese said.

American Express will continue its regular credit card program, he said. Holders of these cards can apply for the newer Executive card at the Bank of the Southwest without any additional charge. Persons without American Express credit cards can obtain them through an application for Executive Credit.

Executive credit will be established, upon application, to individuals who meet the bank's qualification which include an annual income of $10,000 or more or a personal net worth of $40,000 or more," McNeese said.

Persons using the Executive Credit account will be billed each month by Bank of the Southwest. The statement will include an interest charge calculated at 1 per cent on the average monthly outstanding balance. There are no other charges, McNeese said.

If the American Express card is used, persons holding the Executive Credit card have the option to pay the bill in full or convert the Express statement into a loan against the credit if the bill is more than $100.

The Executive Credit balance will have the protection of Life Insurance which provides for full repayment of any unpaid balance to the bank in the event of death during the term of the loan. The account is also covered with a $100 deductible liability insurance policy which is free.

THE MINIMUM monthly payment on the account is $100 unless, of course, the unpaid balance in less than that amount. Otherwise, a payment of 1-10 of the balance owing after the last advance.

Upon signing an authorization form with the Loan Department of Bank of the Southwest, monthly payments will be automatically deducted from the user's checking account and a notice of the amount forwarded him.

McNeese said the Executive Credit program does not give the user automatic overdraft privileges on his checking account. If the line of credit is exceeded, the bank will in some cases authorize a slight excess, he said.

AT PRESENT corporate accounts or cards issued in the names of companies are not eligible for the Executive Credit program. Card holders may supply supplementary regular American Express cards for members of their immediate family at an additional cost of $7 per card.

There is now a $12 yearly fee for the use of the American Express card. There is no charge for the Executive Credit card until it is used.

McNeese said only the basic card holder will have an Executive Credit Card. Supplementary card holders may not draw drafts in American Express offices for the purchase of travelers cheques but may cash personal checks up to $300 domestically and $500 overseas. In all other respects the supplementary credit cards carry all the privileges of an American Express Credit Card.

E.H. Deininger, vice president of Bank of the Southwest, will be in charge of the Executive Credit program.

BUSINESS & ECONOMY

COMING NEXT THURSDAY

Bank branches begin popping up in grocery stores.

BUSINESS & ECONOMY

COMING NEXT THURSDAY

Bank branches begin popping up in grocery stores.