[Repo]

(12-28-2017 10:49 PM)monster Wrote:  

Credit card companies and the credit score bureaus already sell all your information.

Much of personal banking is basically hinged on credit purchases and cash is being phased out completely.

This is a small extension to all this data of you being sold.

I get angry at all this but then I wonder if its worth to fight and/or "hide" and really to me at least no, because you can't do anything anywhere then.

No, I work for a bank that this will impact and this is pretty significant.

So right now banks leverage a ton of info off credit bureau's to determine credit worthiness, and to create models predicting which customers will pay them back, which won't, and which will be the most profitable.

The information we get from the credit bureau includes things like your loan balances, credit lines, amoumt of last payment, wether you make all minimum payments, twice the minimum, etc.

But now if you opt in they will be able to see what you actually use your card for on a day to day basis, your method of payment, how early exactly you pay, and all other kinds of things that the data modelers are drooling over. For example, if you use your credit card for online gambling or for other online money services that are associated with either gambling or potentially risky business, you can be flagged as a higher credit risk.

There is actually a chance that this will start to make credit bureau's obsolete. Right now some merchants simply choose not to report to credit bureau's because they are terified of what could happen if a customer disputes something, and draws out a lawsuit if they aren't happy with the result, even if they are wrong. So it can be easier to just not report things. Over time because of things like this, credit bureau's are getting less and less accurate or useful, and companies are always looking at how to get a leg up on the competition. FICO scores for example are a complete joke when it comes to predicting who will charge off, which is what they were originally designed for. Now practically nobody but small institutions use it for data models.

Anyway, alot of things are still uncertain how exactly this will turn out, but very interesting and scary.