When Were Credit Scores Invented?

As we go about our daily lives, it’s easy to take for granted the tools and systems that help us manage our finances. One of the most important of these tools is our credit score, which helps lenders determine our creditworthiness when we apply for loans or credit cards. But where did this system come from, and who invented it?

In a recent article titled “When Were Credit Scores Invented?”, we learn that the credit scoring system has a longer history than you might think. According to the article, the first credit bureaus were created in the mid-19th century, in response to a growing need for businesses to assess the trustworthiness of potential customers.

Over time, these bureaus began to develop standardized methods for collecting and analyzing credit information, and by the early 20th century, the modern credit reporting industry had emerged. It wasn’t until the 1950s and 60s, however, that the first credit scoring systems were developed, allowing lenders to quickly and easily assess the creditworthiness of potential borrowers.

Today, credit scores are a ubiquitous part of the financial landscape, used by everyone from banks and credit card companies to landlords and employers. And while the specifics of how these scores are calculated can be complex, the underlying principles remain the same: to help lenders make informed decisions about who they should lend money to, and at what terms.

Overall, this article is a fascinating look at the history of the credit scoring system, and a reminder that the tools we take for granted today are often the result of decades of hard work and innovation. Whether you’re a seasoned financial professional or just someone who’s interested in how the credit system works, “When Were Credit Scores Invented?” is definitely worth a read.