Big Data Within Credit Scores

The argument behind credit scores is to objectively identify factors that will/could influence an individual’s financial situation. The collection of said data is where we begin to see issues within the consumer credit report. The accuracy of said report has been called into question since its implementation regarding the use of personal data. Considering that the number given on the credit report follows you for the rest of your life, the data being used should be considered carefully. The shift of utilizing all data as credit data has created a divide of deciding what personal data is fair game to use on credit reports. This goes further as the data being utilized investigates both on and offline behavior of the reported individual. The issue at hand revolves around the transparency of the data and how it is objectively used on the report. The multitude of factors from social media presence to church attendance all could be included in how an individual is scored.

Resources:

Harvard Business School

Fortune Education

DataScienceDojo