Did you know that Arthur Morris is the man responsible for creating the installment loan in (or around) 1910?
It was called the Morris Plan (clever name huh) and it was the first stab at making credit available to the average person despite heavy criticism that lending money to working class citizens had failure written all over it.
And yet the American economy today is built on credit!
Back then, the lending requirements were as follows:
- Two co-signers in order to qualify
- Loan term = 1 year
- Payments were made in weekly and monthly installments
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