The age of the plain old credit score is gone, says a report at the Wall Street Journal, and it’s been replaced by ever more intrusive efforts by banks and credit agencies to gauge exactly what you’re worth, and what you can pay.
To that end, financial firms are now tracking their customers’ bank deposits, rent payments or home values, and even utility bills to figure out who may soon become a financial risk, reports WSJ‘s Karen Blumenthal.
So, for example, if your employer pays you through direct deposits and those deposits stop, financial institutions can now have warning that your money situation is likely to tighten, and may deny you credit on that basis.
But the efforts don’t end there. A new area of research, income estimation, “took off earlier this year,” WSJ reports, and involves financial firms collecting information about mortgages, personal loans and credit history to determine how much an individual makes and how much credit they should be given.
In this new era of deep data-mining, even your utility bills and rent check aren’t out of bounds.