The Technology Behind How Your Credit Score is Predicted

Technology is built around one thing; pioneering the future. Of course, credit rating agencies also like to know what’s going on with the future too; especially when it comes to analysing their consumers credit scores.

Do credit bureaus favour some technologies over others? How do things take shape here, and is it always known to the clients and consumers, or is secrecy at play too?

Consequently, here’s a quick rundown of the technology behind how your credit score is predicted.

It’s Often a Mystery

As was recently published online, credit rating agency Equifax recently suffered a staggering cyberattack, resulting in the mass loss of consumer data. It was estimated that around 400,000 UK consumers were affected, but reports vary greatly. However, one thing is certain – credit rating agencies aren’t always publicly upfront and transparent with the systems and software’s they use.

Nevertheless, these faceless servers store information on their consumers; electoral rolls, any and all court records, publicly available account data, and previous credit searches. In the end, all this information is accumulated to predict their clients credit scores, but unfortunately, their own systems aren’t always so secure. Fortunately, companies such as Liberis are professional and reliable, and provide reliable credit score guidance to all.

National Hunter Systems

This a system that is mostly frequently used by lenders. It analyses current application forms the user is filling or has filled out and compares them with forms that were completed in the past. Its combes through each looking for the faintest of inconsistencies in order to detect fraud, and thereby refuse credit score applications. From here, the lenders themselves must do their own detective work, as they can’t reject consumers on a National Hunter system alone.

Even the slightest typo can change the game here, so it’s important that users filling out the application are extremely careful with the information that they’re inputting. It’s all on record for judgement, and there really aren’t any errors that will slip through. After all, National Hunter is primarily a filter system; detecting errors is what it’s explicitly designed for.

 

The General Internet!

Technology’s capabilities often centre in on the internet. In the case of predicting credit scores, it’s where most of the action takes place, at least in terms of the usual methods anyway. This is because everyone is familiar with the internet, and more importantly, most people use it and have a fingerprint that they leave behind.

Credit bureaus ask the same questions as most marketers; what sites do our clients visit? What do they search for? Additionally, they have been known to hire private detectives to fleece some of the accounts of their clients for lowdown’s on their finances. Mostly this takes place online. After all, if they spend most of their time shopping for non-essentials that they can’t afford, or being easily conned by money leaching ads, then this can be extremely telling as to whether they’re good with money and worth investing in.