Nowadays, we couldn’t imagine Western society without credit. But when has this all started? How have loans evolved?
Let us tell you a bit about the history of credit, from the antiquity to modern life.
Going Back to the Antiquity
Records of credit date as far back as ancient Greece, more than 1700 years BC! In Mesopotamia, it was the Law Code of Hammurabi that dictated the rules of loans, which was calculated in grains back then.
Interest collection was already part of the terms of loans, and the borrower had to provide guarantees to reassure the lender. In cases of non-repayment, seizure of assets was common; sanctions could go as far as slavery. Shortly afterwards, bank loans made their entrance, along with the appearance of money.
Credit later penetrated the Christian Western society as early as the Middle Ages, the Church seeing the profits of lenders as a sin. That didn’t stop the Jewish people nor foreigners from doing it.
Industrialization: The Comeback
It would only be with the industrialization that credit would rise back up again, but only for the professionals of the time. As for private individuals, it’s still recent: consumer loans only appeared after World War II.
Credit then became largely accessible and now exists in many forms:
- Personal loan
- Credit line
- Mortgage loan
- Credit cards
- Credit for a car loan
- And even more
Loans have also given rise to many professions, most notably in specialized agencies. Credit score is now an essential notion one must master to manage their situation.
At L’Ami Auto Crédit in Chicoutimi, La Malbaie, Baie-Comeau, Alma and Sept-Îles, we simplify the notion of loans and we take time to equip you with a free credit report. Get an auto credit deal that best suits you!