3 ms·

Probably less plausible than you think. What incentive would company X have in denying service to someone based on unrelated parameters? That's just going to re

Probably less plausible than you think. What incentive would company X have in denying service to someone based on unrelated parameters? That's just going to reduce business and profits. With credit scores, its a bit different. Credit scores are a risk profile of the consumer, so if a company doesn't deny service/charge higher interest to a consumer with low credit scores, it potentially stands to loose money. Besides, this is regulated, using parameters like gender, age, race etc. in your underwriting model is still illegal, I think. Any such score, used to deny service to group x based on parameters unrelated to the product itself would simply be discrimination, no?

zaphar 9y ago
(disclaimer I would never advocate for this in way shape or form) With that out of the way in small businesses reputation can matter quite a lot. Informally many small businesses know that one guy/shop/service that is not worth having as a client. Regardless of discriminatory issues every client has varying levels of cost associated to doing business with them. So just like Credit Scores are a risk profile for how a person will handle debt. You could envision a subset of social scores as a risk profile on having someone as a business partner/client/provider based on metrics like support cost, likelihood of nickle and diming you, Contract negotiations gone wrong. That sort of thing.