Experian: What's *Really* Going On?
Experian's "Credit + Cashflow Score": Because Your Bank Account Wasn't Invasive Enough
Experian's at it again, huh? This time they're rolling out some Frankensteinian "Credit + Cashflow Score" that's supposed to revolutionize underwriting. Revolutionize it how? By giving them even MORE access to your personal financial data? I mean, give me a break.
The press release is full of buzzwords like "alternative data" and "consumer-permissioned banking information." Consumer-permissioned? Yeah, right. Like we have a choice if we actually want to, you know, get a loan or rent an apartment. It's permissioned in the same way that clicking "I agree" on a 70-page terms and conditions agreement is permissioned.
Scott Brown, some group president at Experian, says this is "the future of underwriting." Is it really the future, Scott, or just a way to squeeze every last drop of data out of us plebs? What happens when they decide my avocado toast habit makes me a credit risk?
Digging Deeper Into Our Wallets
Okay, so what's actually in this magical score? They're pulling in data from your bank accounts – income, balances, card payments, even bank fees. Bank fees! So now getting hit with an overdraft fee because Wells Fargo decided to reorder my transactions to screw me over will affect my credit score? This is insane.
And it's not just a snapshot, oh no. They're getting a "24-month window" into your financial life. It's like they're building a financial surveillance state, one credit score at a time. What happens to all this data? Is it really secured? I keep hearing about these breaches all the time.
They're also using data from Clarity Services, which apparently tracks "tens of millions of consumers who use nontraditional financial services." Translation: they're scooping up data on people who are already struggling to get by. Nice.
Speaking of struggling, this whole thing comes as "many cardholders view the credit limit process as ‘bafflingly opaque’". You know what else is bafflingly opaque? The entire credit scoring system! It's like some arcane ritual designed to keep us all in debt peonage. I swear, it's like they make it confusing on purpose.
The UK Gets in on the Fun
Oh, but don't worry, it gets better. Across the pond, Experian is also starting to factor in rental payments into credit scores. Finally, paying your rent on time might actually help you. Assuming you "opt in," which I'm sure is just another way to give them even more access. As reported by the BBC, Experian: Credit scores to include rental payments for first time.
They're also ditching terms like "poor" and "very poor" for "Excellent, Very Good, Good, Fair and Low". Because rebranding misery makes it any less miserable, right? I guess red is too aggressive, or something.
They're also looking at things like overdraft use, credit card advances, and even how often you switch mobile providers. Switching providers? What does that have to do with anything? Are they going to penalize me for shopping around for a better deal?
The good news is, a spokesperson claims the changes won't affect someone's ability to get credit. But the bad news is, 44% of customers are likely to drop down a score band after the changes. So, uh, thanks Experian.
Shareholder Shenanigans
And just to add insult to injury, Experian is also busy buying back its own shares. Because what better way to "enhance shareholder value" than to spend money on stock buybacks instead of, you know, actually improving their services or protecting our data?
Spark, TipRanks’ AI Analyst, says Experian has "strong financial performance". Of course they do. They're making bank off our data! But Spark also notes "technical indicators suggest a bearish trend, and the stock’s high valuation limits its attractiveness." Maybe I'm not the only one who thinks this whole thing is a bit shady.