4 ms·
The fact that banks would like this to better determine risk, doesn’t mean a society has to allow for it. Banks could also just accept the higher risk, and work
by ako 3y ago
The fact that banks would like this to better determine risk, doesn’t mean a society has to allow for it. Banks could also just accept the higher risk, and work with that. For example by asking higher interest or insuring the debt. There are solutions that don’t require big invasion of privacy.
- ryanSrich 3y agoAsking who to pay higher interest? Everyone? Until one bank says “you can pay less if you tell us about your past loan history”. Which 99% of people who pay their loans back are going to take.
- function_seven 3y agoThis is all true. I don’t think I’d like paying more for debt because others routinely default on theirs. I’ve always been judicious with the debt I take on, and that has benefited me by allowing me to access the cheapest credit and no-deposit utilities. All that being said, I do appreciate that centralized scoring can go too far. And I don’t have the answer for where a line should be drawn. Or how far back in time the scoring should assess. (BTW, it’s generally 7-10 years I believe, which is pretty short) How is auto insurance handled where you are? How would you feel about no-fault insurance rates where every driver pays the same amount regardless of risk?
- jpk 3y agoI'm not sure I'd call 7-10 years "pretty short". That's roughly 10% of one's entire life.
- pertymcpert 3y agoI don't want to pay 10% interest rates so no thank you. Do you want to pay 10% interest on your house or car?
- Rebelgecko 3y agoHow much would that impact interest rates? I'm curious since even a fraction of a percent can have a big impact on the economy