How credit scores evolved from humans to AI
How algorithms can bring down credit scores
In return, customers are offered quick decisions and the illusion of agency. If everything you do informs your credit score, then a person might start thinking that if they just search for "good" things on Google, check in at the "right" places on Facebook, and connect with the right people on social media, you can become lendable."It suggests in some ways, that a person could control their behavior and make themselves more lendable," said Tamara K. Nopper, who has done research into alternative data and credit.In reality, these systems are likely noticing and interpreting signals that customers might not realize: Your zip code alone, in many cases, can tell a bank how likely it is that you're white. If you went to a historically Black college or university, that data could be used against you. If you use eHarmony, you might get a different credit score than if you use Grindr.One study from last year on using so-called "digital footprints" to generate credit scores found that iPhone users were more likely to pay loans back than Android users. "The simple act of accessing or registering on a webpage leaves valuable information," the authors wrote.
"Your zip code alone can tell a bank how likely it is that you're white"