Only 50 or 75 years ago, lending money was based mainly on a person's reputation. Money was lent after a borrower talked with friends and business acquaintances. Now, of course, much more financial background information is demanded. The use of credit cards and other forms of borrowing has skyrocketed in the last few decades, and today, only accepted forms of accounting are used to determine if a loan applicant is a good risk. As business and financial institutions have grown more complex, the demand for professional credit analysis has also expanded.
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