The Evolution of Credit Scores

Zoohouse News
8 min readJun 20, 2024

Understanding Their Origins, Impact, and Regulation

The financial history of the United States is rich and fascinating, reflecting the growth of the country. This history includes the origin and evolution of credit scores, which were invented in the 1950s. Before that, lenders used different methods to determine whether they wanted to work with an applicant. While some of these methods are still present in current credit scoring guidelines, others were unfair and have been discarded. The biggest revolution in credit scoring came in the 1990s with the introduction of the FICO score, which rapidly became the standard for American lenders. This article delves into the origins, impact, and regulation of credit scores, offering a comprehensive understanding of their evolution.

Key Takeaways

  • Credit scores were invented in the 1950s, revolutionizing how lenders assess creditworthiness.
  • The FICO score, introduced in 1989, became the standard for American lenders.
  • Credit scores have significantly impacted consumer behavior, influencing spending habits and loan accessibility.
  • Regulation and control of credit scores are governed by key legislation and regulatory bodies to protect consumer rights.
  • Technological advancements continue to shape…



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