Unveiling the Untold History: When Did Credit Scores Start?
Ancient Origins: Credit scoring dates back to ancient civilizations like the Sumerians.
Benjamin Franklin's Role: The founding father played a key role in the development of creditworthiness concepts.
1841 Mercantile Agency: The first credit reporting agency was established in 1841.
Character Assessment: Early credit reports emphasized a person's character, not just financial history.
Dun & Bradstreet: Founded in 1841, it remains a prominent credit reporting agency.
The FICO Score: Created in 1956, it's the most widely used credit scoring system.
Digital Age: Computers revolutionized credit scoring in the 20th century.
Credit Bureau Dominance: Experian, Equifax, and TransUnion became major credit bureaus.
Credit Card Impact: The introduction of credit cards transformed credit usage.
Fair Credit Reporting Act: Enacted in 1970 for fair and accurate credit reporting.
Complex Algorithms: Modern credit scores use intricate algorithms.
Credit Score Privacy: Laws protect the secrecy of your credit score.
Global Variations: Different countries have unique credit assessment systems.
Alternative Data: New models consider rent and utility payments for credit assessment.
AI Integration: Artificial intelligence is enhancing credit data analysis.