Eglin federal credit union

PAST TENSE

In the 1970s, when yacht-sized sedans roamed the freeways and calculators as big as typewriters usurped desk space, credit unions began supplementing the three Cs of credit-character, collateral, and capacity-with credit-scoring systems.

The effects test of the Equal Credit Opportunity Act (ECOA) of 1976 provided one impetus to create credit-scoring systems that didn't include ECOA-prohibited factors when determining the credit score.

In 1979, Eglin Federal Credit Union, Fort Walton Beach, Fla., used a programmable electronic calculator (above) to evaluate loan applications.

As reported in the September 1979 issue of Credit Union Magazine, "A cartridge program is inserted into the calculator, and information from the loan application is then entered. The loan officer receives a total score telling the probability of repayment; another score telling whether or not the applicant will need to submit an application for future loans; and the dollar amount a member qualifies for on a signature loan. The system is used only as a guide in evaluating loan applications."

Copyright Credit Union National Association, Inc. Sep 2004
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