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US Politics 1w

cheese_of_the_world_unite

 If the US credit score system was really JUST about likelihood to pay off debts, the math behind credit scores wouldn’t have to be such a well-guarded secret that it’s federally illegal to tell anyone the formula.
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US Politics 1w
One is a system to help banks predict if someone will repay their loans The other is a system used to enforce social compliance Where’s the correlation?
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Anonymous 1w

Well I mean it’s a private formula bc a private company made it, and there’s other formulas too. Fair Isaac, vantagescore, etc. They obviously wouldn’t make it public because a competitor would just steal it. This isn’t some government agency that provides credit scores and is keeping it a secret, it’s a private company’s private formula.

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Anonymous 1w

It’s a well-guarded secret because they need a way to generate revenue. So they provide scores as a service. Otherwise banks would just calculate them themselves

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Anonymous replying to -> #1 1w

Yeah, I personally don’t think 3 private companies should be able to dictate one’s ability to secure literally every means of survival, with zero transparency about what actually goes into that calculation. There’s plenty of evidence that non-credit related behaviors play into one’s credit score, what websites you visit, consumption habits, etc.

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Anonymous replying to -> cheese_of_the_world_unite 1w

Credit score is a small part of your overall creditworthiness, banks care more about your DTI for personal loans and DSCR and LTV for commercial loans. Only derogatory items on your credit report will hurt you (repos, bankruptcy, fraud), as long as your score isn’t below subprime they really don’t care what it is.

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Anonymous replying to -> #2 1w

Yeah man, I know why it’s a well-guarded secret, I still think it should not be a well-guarded secret. Keeping something that fundamentally important to every single citizen’s quality of life under strict wraps is not good for the people affected by the whims of these 3 companies. Which I will remind you, is literally everyone.

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Anonymous replying to -> #2 1w

Both of you have committed a serious is-ought fallacy here. I’m making a value claim about how the state of the credit score system smells fishy, seems ripe for abuse, especially given its secrecy. Rather than responding to those points, you’ve gone “well that’s just how it be”and yeah, obviously that’s how it be, I’m saying that is not how it SHOULD be.

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Anonymous replying to -> cheese_of_the_world_unite 1w

Oh no I agree that it the criteria and data should be open sourced in an ideal world. I can’t see the post that OOP quoted so maybe I’m missing context.

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