How Equifax Became a Private IRS

Re:How Equifax Became a Private IRS by Retric on Monday January 23, 2023 @09:28PM (#34498339)

The issue is the rules include things like lowered scores after paying off a home loan and companies are using these scores for things that have nothing to do with the likelihood of paying back a loan.

They don’t even do a very good job of what’s intended as people can literally have an 800 score the week before declaring bankruptcy.

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Re:How Equifax Became a Private IRS by piyh on Monday January 23, 2023 @09:40PM (#34498435)

It's a score, not a fortune teller. It's for financial modeling, and only one thing of many that lenders look at.

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Re:How Equifax Became a Private IRS by Retric on Monday January 23, 2023 @10:30PM (#34498799)

The entire point of a credit card score is to predict the future.

Being bad at that because of inherent inaccuracies in their methodology is a problem.

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Re:How Equifax Became a Private IRS by gruez on Tuesday January 24, 2023 @12:11AM (#34499596)

>Being bad at that because of inherent inaccuracies in their methodology is a problem.

The parent poster already mentioned that it's "not a crystal ball". It doesn't have to be perfect. Sure, there are some edge cases where it fails, but if it works 99% then it's good enough. On the flip side, do you really want a minority report like system that can predict your future credit with 100% accuracy?

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Re:How Equifax Became a Private IRS by Retric on Tuesday January 24, 2023 @06:54AM (#34502467)

99% accuracy is wildly overstating things. With low enough accuracy such predictions become actively harmful.

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