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Credit scores from the major credit bureaus are such a big deal because handing out credit on an ad hoc basis is de facto illegal. You will be sued and accused
by legalcorrection 4y ago
Credit scores from the major credit bureaus are such a big deal because handing out credit on an ad hoc basis is de facto illegal. You will be sued and accused of discriminating against black people. You will probably lose, or spend enough money on legal fees to have lost anyway. To defend against that, you have to make the process as rigid and impersonal as possible. The best approach is to use the government-blessed credit bureaus.
- solarkraft 4y agoThe joke behind that is that there's just as much discrimination, just hidden behind some intransparent algorithms.
- legalcorrection 4y agoMaking the process rigid and algorithmic helps make sure that you aren't using race itself as a variable in your analysis, but it doesn't change facts about the world. Black people have lower credit scores because as a group, they are less likely to pay their bills on time or at all. But because race isn't considered as a factor, a black person who is financially responsible is not dinged just because other black people aren't.