Credit scoring started in which period?

• A. Late 1950s to early 1960s
• B. 1990s
• C. 1940s
• D. 1970s

Answer: (A)

Credit scoring began as a statistical method to predict borrower defaults, marking a shift from subjective judgments to data-driven risk assessment. The development of the first formal credit scoring approach happened in the late 1950s to early 1960s, led by Bill Fair and Earl Isaac at Fair, Isaac and Company. This period is when scoring models started to be created and tested, laying the foundation for the widespread use of credit scores in lending decisions. The 1940s are generally considered too early for a formal scoring framework, while the 1970s and especially the 1990s reflect subsequent adoption and refinement rather than the starting point.