So, credit scores are the next thing which must be regulated – that is, directed and planned by politics. Neatly allowing us to see the vapid arrogance of this progressive project.
When we next get a progressive administration, an early order of business should be regulation of credit scoring
Why’s that then?
And the scoundrels who run (unregulated) private credit-scoring companies, like FICO, have imposed idiotic standards that make it even harder. For instance, if you apply for credit for perfectly defensible reasons like lowering your credit card interest rate, the very fact that you apply can lower your credit score. Presumably the algorithm thinks you are about to go more deeply into debt.
It’s not possible for a very clever person like Robert Kuttner – and be in no doubt, Kuttner is very clever, he’ll be the first to tell you so himself – to work out why an application for credit might be useful as a measure of credit worthiness. Therefore we should go change the law so that this cannot happen. Stands to reason, amirite?
True, none of us instinctively know why credit scoring companies do it this way. We could probably go find out but before we do that we have at least a thought process that aids us. They do it because they think it’s useful. And people buy their product because they think the way they do it is useful. That is, users of credit scores find using an application as a guide to be a useful part of the process.
Those who don’t use that as a guide are providing an inferior product. Those who are regulated out of doing so are just clearing the market for those who will do so – whether legally or not.
Which is where that progressive arrogance comes in. Peeps use certain methods of determining credit ratings. As I, that clever progressive, haven’t the slightest idea why they do they must be banned from doing so. Because I, that smart guy who would run the world, don’t understand then it must be idiotic, of no value, possibly even counterproductive. For it’s not possible that I, that clever guy, might now know everything, right? If I didn’t know everything then I wouldn’t be able to advance the argument that everyone must do as I say, would I?
Yup, Fico are just idiots and I, Kuttner, know better.
And if that ain’t arrogant then what is?