What is the development of credit?

The development of credit can be traced back to ancient civilizations, where merchants extended loans and recorded debts on clay tablets. Over time, the practice evolved with the introduction of currency, banking systems, and formalized credit agreements. The establishment of credit scores and modern financial institutions in the 20th century further transformed credit by enabling individuals and businesses to borrow based on assessed risk. Today, credit plays a crucial role in the global economy, influencing consumer behavior and economic growth.