About ADCULTURE

Apple launches the App Store and the first mobile wallets enter the marketplace, which allow consumers to store their credit information on their mobile device to use in-store and online.

The “big three” credit scoring agencies work together to create VantageScore. 10% of the market and six of the 10 largest banks use this new consumer credit-scoring model.

The FICO score is introduced, and quickly becomes the standard system to measure credit scores. The algorithm remains remarkably similar today.

Congress passes the Fair Credit Reporting Act, which establishes a standard legal framework for credit reporting agencies. Bureaus must now open their files to the public, remove irrelevant data, and delete negative information after a certain amount of time.

BankAmericard (now Visa) launches America’s first licensed general-purpose credit card. It operated on revolving credit, meaning cardholders could carry a balance month-to-month. American Express and Mastercard follow, allowing more Americans to shop on credit.

New York businessman Frank McNamara introduces the Diner’s Club Card, which is considered the world’s first charge card. It could be used at participating restaurants and travel and entertainment venues. Balances were paid in full each month.

Brooklyn banker John Biggins launches the Charg-It card, which his customers could use for local purchases. The purchases were forwarded to Biggins’ bank, which reimbursed the merchant and collected payment from the customer.

Western Union begins issuing charge cards to regular customers so they can charge their purchases and pay later.

General Motors begins lending consumers the money through the General Motors Acceptance Corporation (GMAC). GMAC popularizes the idea of installment credit, requiring only 35% of the car’s value as down payment.

Cator and Guy Woolford found the Retail Credit Company. They compile a list of creditworthy companies in “The Merchant’s Guide,” and sell it for $25. RCC goes on to become Equifax, one of the country’s three major credit agencies.

The Mercantile Agency, now renamed R.G. Dun and Company, establishes an alphanumeric system for evaluating commercial creditors. It was used until the 20th century.

Merchant Lewis Tappan founds the Mercantile Agency to systemize the rumors about debtors’ creditworthiness. His company’s reports were distilled into ledgers kept in New York City.