Education

AUTOMATED UNDERWRITING VS MANUAL UNDERWRITING Just this month the CFPB (Consumer Financial Protection Bureau) reported FIVE Federal Agencies are looking into how Financial Institutions use Artificial Intelligence to support risk evaluations before approving a consumer request for a financial loan. Ironically, the investigation will indirectly involve some of the elements mentioned in last month’s article titled the 9 Credit Scores You Never Knew Existed by providing insight into how a consumer’s credit behavior as well as credit reporting errors support quick pros and cons within the automated decision-making process. The early question, is how does it affect consumers? How is AI affected by a creditors input of adverse data? Could the FICO score be considered AI? Can it disrupt loan approvals when data is input incorrectly by your creditors or whom you do business with? Let us take a closer look at one example that is a hot topic [...]

9 CREDIT SCORES YOU NEVER KNEW EXISTED You already know about your credit risk score, more commonly known as your FICO Credit Score. That is the one we normally think of when we talk about credit scoring but are your aware that you are being analyzed based on other lifestyle choices and these Nine other types of Consumer Scores that are relatively unknown — that affect you tremendously: Revenue Score - This score measures how much money you are likely to make the creditor. This is measured by rank-ordering your revolving credit accounts by how much of a revenue source you might be in the future. Bankruptcy Score - Predicts if you are likely to declare bankruptcy. It looks at data such as how many high-balance and delinquent accounts you have. Creditors know that anyone who has a high number of late payments or maxed-out accounts is headed for [...]

With the rising cost of gas prices…and no end in sight…everyone wants to save as much money at the gas pump as they possibly can. You may not be able to control the price of gas but you can change certain habits and follow some basic guidelines to help you save as much money as possible.