What is the nature of credit?
Credit is basically a snapshot of your credit hsitory. It’s purpose is to give the lender a good idea about your payment histories in the past. The concept was first introduced in the 80s (I think) by a company called the Fair Isaac Company. They were the first ones to collect data on individuals from other companies regarding accounts, balances and payments. They are also the original company to create a score based on credit characteristics, better known as the FICO score. It was introduced so creditors could make lending decisions faster. It used to take days to write companies and verify information …wait for their response and then continue with business. It was created out of convenience. Hope that helps!
