4 ms·
Thats actually a very good idea. Here in Germany credit-reporting is done from one central institution called the Schufa and their methods of scoring as well as
by halotrope 11y ago
Thats actually a very good idea. Here in Germany credit-reporting is done from one central institution called the Schufa and their methods of scoring as well as their practices are completely intransparent and can sometimes have quite a big impact on peoples lives (about even the most basic things like being able to have a cell phone contract or renting a flat) without any alternative for both creditors and debitors. This area could really benefit from some innovation.
- davismwfl 11y agoThat is similar to how it is here in the states but there are 3 main agencies today. There is one primary scoring system called FICO that is not very transparent either. They give rough ideas as to the weight things have on your score but that is about it. There are some alternative scoring systems too but not as widely used. In the US banks are the primary funding source for most credit reporting agencies, so it seems to me that CRA's interests are more in line with the bank then in being neutral with their reporting. Meaning they would rather report something that is negative and maybe not accurate then not report it because it protects their client and raises consumer rates. Many stories exist around these types of issues. Is the funding source for Schufa similar in Germany, primarily banks?