ford91exploder
DIS Veteran
- Joined
- Jan 30, 2009
- Messages
- 1,016
I’ve built models for a living. They do matter. Financial companies use in house custom models. No one relies on off the shelf FICO models anymore to make decisions.
Here’s an extreme example. SoFi uses your social media profile to come up with part of your score. One piece of data they use is where your friends live. How many live in the same state as you? They can use this to figure out your propensity to move. It’s more difficult to skip trace someone that moves a lot. If you have more out of state than in state friends it also speaks to how stable you are. Another piece of data they use is how many laundromats are close to where you live. This has gotten them into trouble recently.
Actually NOT having a social media profile may be helpful because some of the custom models utilize your Facebook' friend's credit scores to determine YOUR creditworthiness on the assumption if you have a lot of friends with poor credit you will have those same habits. The credit industry is going gaga over the Chinese social credit system, Where in reality they should be working on accuracy and data/identity protection.
https://money.cnn.com/2013/08/26/technology/social/facebook-credit-score/index.html