A better credit rating system - I think that's coming and we won't like it.
Credit scoring is basically data collection/mining and statistical prediction. With all the new data sources available today, it's hard to think that won't result in a major disruption. But…
(1) Credit agencies' customers are creditors, not borrowers. A good service is not necessarily a fair one, just a statistically correct one. I think we may find an increasing, not decreasing disparity between fair an useful (to creditors) service. Paying an unfair bill on time may even be a better predictor of your likelihood of paying bills than paying a fair one.
(2) The creepier (what data is collected & used) and more unfair (your parents defaulted on..) things get, the more shadowy the biz is likely to get. At least credit score is relatively accessible.
Credit scoring is basically data collection/mining and statistical prediction. With all the new data sources available today, it's hard to think that won't result in a major disruption. But…
(1) Credit agencies' customers are creditors, not borrowers. A good service is not necessarily a fair one, just a statistically correct one. I think we may find an increasing, not decreasing disparity between fair an useful (to creditors) service. Paying an unfair bill on time may even be a better predictor of your likelihood of paying bills than paying a fair one.
(2) The creepier (what data is collected & used) and more unfair (your parents defaulted on..) things get, the more shadowy the biz is likely to get. At least credit score is relatively accessible.