Credit Cards Center Credit cards from our partners
Reply
Established Contributor
Posts: 992
Registered: ‎05-14-2008
0

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

[ Edited ]

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...

 

 

 

Senior Contributor
Posts: 3,491
Registered: ‎07-25-2008
0

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!


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge
Frequent Contributor
Posts: 470
Registered: ‎02-07-2011
0

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.

"Credit is purely a cash flow tool. Thinking of credit as extra money you didn't have before makes it an EXPENSIVE cash flow tool."
Senior Contributor
Posts: 3,491
Registered: ‎07-25-2008
0

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

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


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge
Highlighted
Contributor
Posts: 96
Registered: ‎06-18-2012

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

[ Edited ]
 
Wallet: NFCU CashRewards 35k-- USAA AMEX 28k-- USAA World MC 22k-- Discover IT 17.5k--Chase Freedom 23.5k-- NFCU NavCheck 15k
Super Contributor
Posts: 5,703
Registered: ‎10-06-2007
0

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

[ Edited ]

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.

11/28/2014 FICO: EQ: 796 EX:788 TU:803
Frequent Contributor
Posts: 470
Registered: ‎02-07-2011

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

[ Edited ]

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.

"Credit is purely a cash flow tool. Thinking of credit as extra money you didn't have before makes it an EXPENSIVE cash flow tool."
Senior Contributor
Posts: 3,491
Registered: ‎07-25-2008
0

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.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge
Contributor
Posts: 96
Registered: ‎06-18-2012
0

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

[ Edited ]

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

Wallet: NFCU CashRewards 35k-- USAA AMEX 28k-- USAA World MC 22k-- Discover IT 17.5k--Chase Freedom 23.5k-- NFCU NavCheck 15k
Senior Contributor
Posts: 3,491
Registered: ‎07-25-2008
0

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.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.