When Were Credit Scores Invented?

Credit scores are younger than you might think.

Lenders have been judging people’s creditworthiness for over a century, but modern, computer-based credit scores really started to take shape in the 1950s, when statisticians began building scoring models to predict who was likely to repay loans.

The most widely known system, the FICO® score, was introduced in the late 1980s and spread quickly through banks and credit card companies in the 1990s.

That’s when “What’s my credit score?” became a normal question for everyday consumers.

KOHO Essential Plan

Even though credit scores are built from complex models, they still boil down to basic behaviours: paying on time, keeping balances low, and managing money consistently.

With KOHO Essential:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• Quickly and easily check your credit score for free

• You can add Credit Building for $10/month, it's an affordable way to build your credit history

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

A Quick Timeline of Credit Scores

• Before the 1950s:
  Lenders relied on local knowledge and subjective judgment—bank managers, store owners, and small credit bureaus deciding based on reputation, personal bias, and handwritten files.

• 1950s–1970s:
  Early statistical credit scoring models were developed. Lenders started using data—like payment history and outstanding debts—instead of “gut feel” to make decisions.

• 1980s–1990s:
  General-purpose scores like FICO® became widely adopted by banks, credit card issuers, and other lenders. This is when scores became a central part of consumer lending and approvals.

• 2000s–Today:
  Credit scores became easier for consumers to see, through free score services and banking apps. At the same time, regulators and advocates started paying more attention to fairness, transparency, and access.

Why This History Matters for You

The important takeaway isn’t just when credit scores appeared—it’s that they’re:

• Data-driven, not personal (for better and for worse)

• Constantly updating based on your recent behaviour

• Influenced heavily by a few key factors: payment history, balances vs limits, and length of history