No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Doubt this will stick around.
@Anonymous wrote:Doubt this will stick around.
And what would replace it? Right now the sub/-prime and lower market is best served by internal lending models; however, the data each lender has is substantially less than Experian's own result set. If this new score produces a higher profitability for a lender's portfolio, then they'll switch to this until their internal algorithms catch up / surpass it.
It's probably cyclical between FICO et al. vs. internal lending models as to their relative weights in an underwriting model; and frankly if FICO was best for each and every individual consumer (or lender for that matter) it would be the only score in existance. The fact that it isn't, means there's opportunities for money to be made in the margins of the algorithm.
Odds are more likely FICO comes up with a product to match, than Experian's going away.
IMHO if I was a CRA I would not invest any money in this since their potential list of customers could be affected by state and local regulations.
It just seems like they're making more super high risk loans easier while pretending it's to help people.
@marty56 wrote:IMHO if I was a CRA I would not invest any money in this since their potential list of customers could be affected by state and local regulations.
Would you please clarify that? Experian is a CRA, and their list of customers are banks... what state regulations govern the underwriting policies of banks with regards to which scores they pull / databases they can check?
@Revelate wrote:
@marty56 wrote:IMHO if I was a CRA I would not invest any money in this since their potential list of customers could be affected by state and local regulations.
Would you please clarify that? Experian is a CRA, and their list of customers are banks... what state regulations govern the underwriting policies of banks with regards to which scores they pull / databases they can check?
A payday lender would have to pay to pull your credit from a CRA or a third party who provides access to a CRA. If I ban payday lenders then the customer base goes down unless a bank or cellphone/cable company wants to work thaat that customer base.
@marty56 wrote:
@Revelate wrote:
@marty56 wrote:IMHO if I was a CRA I would not invest any money in this since their potential list of customers could be affected by state and local regulations.
Would you please clarify that? Experian is a CRA, and their list of customers are banks... what state regulations govern the underwriting policies of banks with regards to which scores they pull / databases they can check?
A payday lender would have to pay to pull your credit from a CRA or a third party who provides access to a CRA. If I ban payday lenders then the customer base goes down unless a bank or cellphone/cable company wants to work thaat that customer base.
Except the data sources are more varied than that, and it's not the PayDay Lenders that will be buying this score. The problem is they're the ones with the data, and somehow that's got to get into the system.
This score is going to be used in the Cashcalls, Plaingreens, etc of the world potentially; probably not PDL's where they don't check credit anyway AFAIK.
@drkaje wrote:It just seems like they're making more super high risk loans easier while pretending it's to help people.
You'd think the last few years would have taught people a few lessons.
Follow my financial journey: http://www.frugalrican.com
@FrugalRican wrote:
@drkaje wrote:It just seems like they're making more super high risk loans easier while pretending it's to help people.
You'd think the last few years would have taught people a few lessons.
Money to be made my friend. BIg money actually given the number of people who have fallen from grace credit-wise.