The History of Credit Scores

The History of Credit Scores

The History of Credit Scores

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Credit scores often seem both mysterious and obvious at the same time. They are woven into the fabric of society, and many things ride on them. Few stop to wonder where credit scores came from, though. As it turns out, credit scores are less than 200 years old.

Early Days

Before individual credit scores became a thing, there was credit reporting. This consisted of individuals being assessed for their level of credit risk. This process was used on a case-by-case basis for evaluating potential business customers. Credit reporting agencies did a credit bureau check. These companies collected information from people across the country and sold it to lenders for reference. This began in the 1800s and extended into the 1900s.

Consumer Credit Reporting

By the early 20th century, consumer credit reporting hit the scene. Before, credit was only extended to businesses looking for funding. When retailers wanted to offer credit to customers, they started credit reports on individuals.

Modern Credit Scoring

This credit process evolved many times before it became what we know today. Around the 1960s, over 2000 credit bureaus were in the United States. It took about 20 years, but this shrank until the market was left with just three. They've used many aspects to determine credit over the years. Today, your credit score is based solely on your financial behavior. These days, everything is digital, which is why you can get a loan today online! Applying for an online loan is often as simple as a few clicks and questions.

How to Improve Your Credit Score

Higher credit scores help you get mortgages, car loans, and other financings. If your score needs a slight improvement, here are some ways to improve your credit score:
  • Prioritize paying down current debt
  • Increase your credit limit if possible
  • Make all payments on time
  • Get an Equifax score and a report. It's the best free credit report. Having all your information makes improving your score easier.
  • If you need a loan, try our Credit Reporting Loan to help built positive credit history.

Qualify For a Loan

There are many good reasons to maintain a strong credit score. A significant one is ensuring you can secure funding if/when you need it! You never know when an emergency or unexpected expense will pop up, and when it does happen, you can get an installment loan more quickly with a good credit score.

The best installment loan comes from SAIL loans because it simultaneously saves the day and builds wealth! When you apply for an online loan, you can get funded as early as that day. Then, you pay back the loan installments. As you pay it back in pieces, it builds interest for you!

SAIL also offers convenient Credit Reporting Loans. These provide the same great benefits as a typical saving and installment loan. The key difference is that you can have the credit reported, and this helps you build credit and ultimately increase your score over time! SAIL loans near me is a popular search, and we have the perfect solution with an easy installment loan. Reach out today and apply for an installment loan online for fast results.
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