The Fair Isaac Credit Organization (FICO) is the world leader in predictive analytics and decision-making technology. This technology is used by businesses to identify risks and opportunities among credit consumers.
Your FICO score is not only used in finances, but also in healthcare, insurance, retail, pharmaceuticals and many other fields. The Fair Isaac Credit Organization uses predictive analytics, which is a statistical analysis of studying consumer data, to predict behavioral patterns, and it attributes a FICO credit score to consumers worldwide.
The Impact of your Credit Score
Many consumers are adversely impacted by their FICO credit score due to misinformation and being undereducated about FICO predictive analytics and those things which can be done to improve their credit score. Many individuals suffer loss of job opportunities, have bad rates on loans and credit cards and have a poor quality of life because their credit score is low based upon predictive analytical tools.
If the predictive analytics promulgated by the Fair Isaac Credit Organization is effective, such statistical analysis should not only predict at risk consumers but also become a teaching tool to educate consumers about the process of credit scoring and economic responsibility.
Credit issues affect individuals every day. There are many uncertainties when it comes to understanding the operation of the Fair Isaac Credit Organization. Two things that are certain are that a credit file exists for every person who has a social security number and that it is sometimes hard for individuals to be able to understand and grasp the mechanics of predictive analytics.
Many financial gurus and personal finance experts provide various ways in which a consumer can influence their credit score using various payment methods and disputing bad debt even if it is legally owed. In fact, there are a host of books, websites and even businesses that claim to know how to improve a credit score using simple methods.
Judging personal character by credit score
Predictive analytics is not effective when a consumer has the capacity to manipulate their credit score using a variety of methods and techniques that will obscure the predictive analytic computer system. If the predictive analytics computer system were objective and fair, it would be unable to be manipulated by a consumer but would rather be reflective of the consumer’s financial behavior patterns without any type of influence. The credit scoring system, being easily influenced by savvy consumers and also possibly giving weight to such factors as age, gender, and socio-economic status, is therefore subjective, unreliable, and unfair to credit consumers.
Why is this important?
This subject matter is important because credit scoring affects everyone in the world. Credit scoring has a direct impact on the quality of life of individuals and families. It is important and imperative that credit scoring is conducted in a fair and objective manner. It is also important that such variables as age, gender, and socio-economic status do not play a role in whether or not a consumer is financially responsible with their money. It is most important to have a proven and effective method of credit scoring that does not allow a consumer to manipulate factors and outsmart the predictive analytics computerized system.