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Why when credit began were bankers and merchants reluctant to lend money and give credit?

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  • Why when credit began were bankers and merchants reluctant to lend money and give credit?


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Answer #1 | 25/05 2017 00:55
Because they didn't trust anybody. There was no prior credit to check on to see if it was likely they would pay back. If a stranger asked you for a large sum of money and said they would pay you back, would you believe them? Now, if they asked and you checked their background on the subject and it said they have always paid back money they borrowed 100% of the time, would you feel a little bit better about borrowing them money?
Positive: 50 %
Answer #2 | 25/05 2017 00:56
They were afraid no one would pay it back.
Positive: 27.272727272727 %
Answer #3 | 25/05 2017 00:55
This is just a guess but it would seem that there were no records of a person's financial history or credit-worthiness back in the day. Even checking a person's salary and or job history would be difficult. So giving someone a loan would be risky. What guarantee would you have that it'd be paid back? Who is the person? But just guessing.
Positive: 28.571428571429 %

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