02-25-2013 07:53 PM
Very interesting article.
03-02-2013 11:56 AM
A credit score while it may slowly have less of an impact on decisions it will most likely still be a part of evaluation.
Literally there are many models of credit scoring, credit enhanced scores, auto enhanced scores, rental enhanced scores, mortgage enhanced scores, your regular score, as a few examples. On top of the numerous types of scores there are numerous types of variations and models on how to determine the score you get. For example you have FICO scores, Vantage scores, etc etc and then each one of them has different model numbels dating back for years. You also have companies such as AMEX who use their own internal scoring system with different variations.
The reality of it all, while there were numerous losses during our hard times, all these companies still made billions of dollars even after losing billions of dollars. They arent looking to help the consumer to obtain credit on new easier various ways, they are more looking at how many more billions they can prosper by looking at the bigger picture and have less losses for themselves.
03-08-2013 01:28 PM
Interesting post. Thank you for sharing. I personally don't think they will become obsolete any time soon. Our entire financial infrastructure relies on the credit score as a starting point.
That said, you never what happens. When I got my first cell phone, I never thought I could access the Web on it but today the story is different.
03-08-2013 01:35 PM
Just as an additional note ... there are several countries where the credit scoring system isn't as well-developed as the US. They do use the "alternatives" mentioned in the article.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO