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New Bias Charges Against FICO Scores ..... unfair to minorities

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Watchmann
Valued Contributor

New Bias Charges Against FICO Scores ..... unfair to minorities

Interesting article from Investor's Business Daily ..... evidently our government is going to target FICO scores as being biased against minorities.  Looks like more easy credit will be coming their way, courtesy of continued government meddling.  And I always thought a FICO was based on an analysis of how likely you were to pay your credit obligations, regardless of who you were and where you came from.:

 

http://news.investors.com/article/618147/201207131919/fair-credit-zealots-on-war-path-against-fico.h...

 

 

 

Message 1 of 58
57 REPLIES 57
drkaje
Senior Contributor

Re: New Bias Charges Against FICO Scores ..... unfair to minorities

This is horrifically bad news for everyone. This has nothing to do with minorities and means the economy isn't rebounding anytime ever!


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Message 2 of 58
Anonymous
Not applicable

Re: New Bias Charges Against FICO Scores ..... unfair to minorities

I see poor credit for a given ethnic group as a symptom of a problem, not the problem itself. The causes are complex factors like education consumption, culture, and public service quality. Didn't anyone read Freakinomics?

 

Treating symptoms (in contrast with treating root causes) is a recipe for inefficiency at best.

Message 3 of 58
drkaje
Senior Contributor

Re: New Bias Charges Against FICO Scores ..... unfair to minorities

Fairness is why a lot of people hate so much, LOL!


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Message 4 of 58
greeneman21
Contributor

Re: New Bias Charges Against FICO Scores ..... unfair to minorities

 
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Message 5 of 58
marty56
Super Contributor

Re: New Bias Charges Against FICO Scores ..... unfair to minorities

Common sense tells us this could never be true.  Even if the formula did have an input for race, where did it come from?  You CR doesn't even know your sex or religion, sexual orientation, etc.

 

Sadly many people will buy this as true, it's never their fault.

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 6 of 58
Anonymous
Not applicable

Re: New Bias Charges Against FICO Scores ..... unfair to minorities


@greenman21 wrote:

I'm an African american and find that offensive. Racial my ass, get off your ass, find a job and pay your bills, its that simple. Credit Bureaus don't measure your income or race (unless there is something I don't know), but how you manage credit and debt. This sounds more like an educational subject rather than credit issue. Looking at the facts here, but to say the average African American has lower credit scores doesn't tell the whole story, we also have the highest crime rate, by far the highest % of our race in jail, highest % of single families and the list goes on.


Absolutely. Again, the correlation is just that: a correlation. Statistics tells us that correlations are not a causal relationship; the scores are just a symptom of a deeper issue.

 


@marty56 wrote:

Common sense tells us this could never be true.  Even if the formula did have an input for race, where did it come from?  You CR doesn't even know your sex or religion, sexual orientation, etc.

Sadly many people will buy this as true, it's never their fault.


Can you imagine the backlash if this was the case? "You're African American. Most FICO High Achievers are Asian, on average." That would be the end of FICO, at best.

Message 7 of 58
drkaje
Senior Contributor

Re: New Bias Charges Against FICO Scores ..... unfair to minorities

This is a case where FICO is being scapegoated, LOL!

 

I just hope things turn around soon.


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Message 8 of 58
greeneman21
Contributor

Re: New Bias Charges Against FICO Scores ..... unfair to minorities

Great fact about Asians, having the highest credit scores, had no idea about that.

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Message 9 of 58
drkaje
Senior Contributor

Re: New Bias Charges Against FICO Scores ..... unfair to minorities

@ greenman,

 

Let's not totally dismiss the idea until they say how many points I'd get, LOL!

 

I keed! I keed!! Smiley Happy

 

This being seriously discussed means a dire economic outlook, for the majority.


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Message 10 of 58
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