[Generated Title]: Experian's New Credit Score: Finally Fair, or Just More Data for the Machine?
So, Experian's rolling out some "Credit + Cashflow Score" thing. Groundbreaking? They want you to think so. Let's be real, it sounds like another way for them to Hoover up more of your financial data.
They're saying it's the "future of underwriting." Underwriting what, exactly? More debt? It’s supposed to combine your credit history with your bank account info – income, balances, all that jazz. Sounds like a privacy nightmare waiting to happen, doesn’t it?
The Illusion of Fairness
Okay, I'll bite. They say it'll help people with thin credit files, those "tens of millions of consumers who use nontraditional financial services." You know, the ones the system already screws over. Will it actually help them, or just give Experian another angle to profit off their struggles? I'm betting on the latter.
They're touting this 24-month window into how you manage credit. Like we're all financial wizards, meticulously planning every purchase. Most people are just trying to survive, juggling bills and hoping the paycheck stretches far enough. Now Experian gets to watch you struggle in real-time. Thanks, guys.
And get this: they're patting themselves on the back for including rental payments in the score. "Great news for renters who are paying on time, every month!" Experian says. Yeah, great if you are paying on time. Miss a payment, and it’s another ding on your already fragile credit. So, it's only great for the people who don't need the help in the first place. How is that fair? Experian: Credit scores to include rental payments for first time
It's like they’re saying, "Hey, we're gonna give you a slightly bigger shovel to dig yourself out of this hole, but we're also gonna make the hole deeper."
Redefining the Bottom Line
Experian's also tweaking its scoring bands. "Poor" and "Very Poor" are out. Now it's "Excellent," "Very Good," "Good," "Fair," and "Low." So, instead of admitting the system is rigged, they're just rebranding failure. Classic.
They even give instructions on how to improve your score if you're in the "Low" band. As if anyone in that band has the resources or bandwidth to follow their advice. It's like telling a drowning man to just swim harder.
Vijay Mehta, some VP at Experian, spouts off about how "AI is starting to redefine the speed, scale and intelligence of how businesses interact and transact." Right, because that's what we need – faster, bigger, and "smarter" ways for corporations to extract value from our lives. Give me a break.
The Shareholder Value Proposition
Offcourse, there's the shareholder angle. Experian bought back 19,000 of its own shares. Because what better way to "enhance shareholder value" than to manipulate the stock price? I mean, that's what it looks like, right? Are they really investing in future growth, or just trying to keep the wolves at bay? Experian Enhances Shareholder Value with Share Repurchase
And sure, analysts are giving Experian a "Buy" rating. Analysts also get paid to shill for these companies. So, I'll take that with a grain of salt, thanks.
Here's a thought: Maybe instead of inventing new ways to score and slice and dice our financial lives, Experian could focus on, I don't know, actually helping people build wealth. But that would require, you know, actually caring about something other than profit. And let's be real, that ain't gonna happen.
Then again, maybe I'm the crazy one here. Maybe this new credit score is a genuine attempt to level the playing field. Nah. I don't buy it.