Deposit Account Information To Be Shared To Help Credit Approvals For Those Without Credit Scores

A number of large financial instutitions (JPMorgan Chase, Wells Fargo, U.S. Bank) have agreed to share data on customers deposit accounts. The aim is to be able to extend credit to individuals without credit scores but are financially responsible and is part of a government back initiative (Project REACh, or the Roundtable for Economic Access and Change). It will looked at consumers overdraft history and their balances over time.

In 2018 credit scoring company FICO introduced the UltraFICO score that is based on checking history and includes factors such as: Current checking balance, Length of checking history, Transaction frequency, Overdraw history. Individual financial institutions have been using their own customers deposit account data to help in lending decisions, with JPMorgan being able to approve an additional 700,000 credit cards. Under this new pilot program that information will be shared between lenders.

Hat tip to WSJ

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John Jerkwad
John Jerkwad

people get so butthurt on this blog about every little thing. must be exhausting to always be upset

Orin
Orin

you sound passively upset

Karen
Karen

Fuckyous and outrage are infinitely renewable resources

W
W

Y’all. They already share all of this information via EWS and have been for the better part of almost 2 decades. This is literally nothing new except for using the data for credit approvals. Request your report if you don’t believe me.

Chris
Chris

The concern is for the eroding preference to limit sharing only to what’s necessary. For example, I don’t need to disclose my SSN to get an email address because my name, DOB, etc. will suffice. But here comes the govt. to tell you that disclosing more info will be better and doesn’t cost us anything.

Jordan (Professional MSer)

How can I opt this shit out?? This completely infringes my personal privacy. FUCK EVERYTHING!!!!!

Orin
Orin

Apple should make a bank account that protects privacy like their new iPhones

Billy Bob
Billy Bob

Don’t worry. Nothing bad will happen. The government told me so.

Abey
Abey

I wish they would allow Opt-out

SU
SU

one step closer to losing privacy? can we stop copying China?

B
B

Perhaps only Oceania for now.

Gotta establish single party government and supreme leader for life before China can be copied, might take another 3 years or so for that to happen.

Orin
Orin

I do not approve. Like really? It’s just bs. People who have poor credit usually have no money anyways, so this data sharing won’t help lenders want to lend more. Just one step closer to no privacy and all my private data being easily accessible, just like how the government wants to be able to share my balances and transactions with IRS

Anonymous
Anonymous

Okay, you don’t like it because of privacy issues. That’s fine. But don’t be complete BS and say “People who have poor credit usually have no money anyways, so this data sharing won’t help lenders want to lend more.”

The ENTIRE POINT of this program is to help people who do have money but have poor credit history. First, you’re BS. What does “have no money” even mean here? That they have literally zero dollars? That they make less than a certain amount? This is specifically aimed at underbanked people. They often still have SOME income. This is a report by the FDIC. https://www.fdic.gov/householdsurvey/2017/2017report.pdf Look at page 11. Even in households with more than $75,000 in income, you still have people who lack mainstream credit. Are you telling me houses that make $75,000 per year have no money?

Second, let’s say you’re right. They have no money. Huh. Maybe one of the reasons they don’t have money is because they can’t get access to mainstream credit options! I don’t know your life. I don’t know anything about you beyond that you’re BS here. However, maybe you don’t realize that access to credit can mean the difference between getting ahead in life and not. Maybe you didn’t realize that credit is more useful than just points and miles. I don’t know.

Sure, complain about privacy. That’s valid. Don’t spout some BS when you can’t even think.

Jed
Jed

My BiL makes $70k+ a year and has never had a credit profile. No CC, no car payments, no loans student or otherwise. He always just pays cash or debit. My sister had to add him as an AU to her CC to in order to get him approved for even a beginner discover card.

Orin
Orin

If one doesn’t have a credit history, and makes money, there are much better ways to get started. You don’t need to sell your privacy for life, just to short cut it a few months. As you said, the bil just had to add himself as an AU and away he went. After a little bit of time with good payment history, it will be easy to get more credit.

Anonymous
Anonymous

The objective truth is that there are a lot of people with money who are under banked. The objective truth is that options such as secured credit cards and authorized users already exist. The objective truth is that despite the ALREADY existing options you cited, there are still a lot of people who remain under banked despite having money.

Therefore, the logical conclusion is that the options you cited are inadequate to address the needs of those many people.

Separately, ah, yes, it is so easy to just find a person with good credit history to let you be an authorized user. It’s so easy! Why doesn’t everybody do it? It’s such a better way!

Also separately, if you read the other comments, the banks already shared this information. This action does not decrease your privacy. So you are actually complaining about nothing.

Orin
Orin

Adding an AU is easy. And if you have enough money, you can pay a number of companies to do it for you if you have no friends.

Anonymous
Anonymous

And again, that option already exists. And again, that option is clearly woefully inadequate for the under banked people who still exist.

Orin
Orin

If this was really to be a service, then those small few who fall into the category you campaign for should be able to able to OPT IN to have this data shared.

Not have these banks share everyone’s information without their consent.

There is a different agenda really going on.

Anonymous
Anonymous

It IS with consent. You know those terms and conditions that you have to agree to? Those specifically explain how they share your information.

In addition, that does not address ANY of the original issues. I could completely agree with you that yes, the opt-in/opt-out system should be better. My problem was that you were complete and total crap with your first comment where you outright denied that these people exist in the first place. That was my problem.

Vince
Vince

I mean this is info your bank already has about you. Sharing it with other banks doesn’t seem like much more of an invasion than it already is

Orin
Orin

And then it isn’t such a big deal to share it with the government. And then it isn’t such a big deal to share it to other companies. It it keeps going, one erosive step at a time

Orin
Orin

I see you are up in arms. If one were to do an objective analysis of those who have poor credit, statistically a large majority would have less savings or funds in their checking account. That is all I am saying. Yes there are some rare few that have more funds and more income, and no credit history because they never bothered. Ok, so they should bother to get a credit history. It is not hard. Get a secured credit card. Or just apply for a credit card where you bank. After six months you can start getting more if low utilization and good payment history. If you want to short cut it more, get yourself added as an AU to a good payment card.

But sell your privacy for a bigger short cut? No thanks. And it opens the door the more junk and soon enough we are in 1984 or a different movie or scenario you can imagine.

It’s just nonsense.

I am sorry if some datum I present offends. I am being objective about it.

Anonymous
Anonymous

What you have done is taken your values as to whether people with poor credit deserve help and then now you’re trying to pass that off as objective. You keep saying you are being objective yet you are complaining that certain things are better or that this is so bad. Those are value judgments. Those are not objective.

What is objective is my citation to the FDIC study showing that many, many people have money yet have no credit. That is actually objective. What you have done is say oh, thats such a small amount that we don’t need to care. You did not say it in those words,bbut you are very clearly trying to dismiss their existence and then pass yourself off as being objective.

I am sorry if you disagree with this policy. You clearly think privacy is more valuable than helping these people in this specific way. That’s fine. But please. Do not cast your subjective. Alue judgments of how much your privacy is worth and call that objective. That’s just you hiding and not owning up to your actual claim that you don’t want this program to help these people in this specific way. That is the actual truth.

Orin
Orin

Your opinions are too fallacious, that I am going to stop trying to reason with you. “Anonymous”

Anonymous
Anonymous

So you give literally zero reason as to why I’m fallacious and then retreat because you have nothing better to say? Okay, sure.

steve
steve

spending money you don’t have(credit) seems like an inherently bad thing regardless, why would you push for the financially unstable to dig the whole deeper?

Alejandro
Alejandro

“People who have poor credit usually have no money anyways”
When I moved to the US I had $50k in my US savings account and no credit. This would have saved me 2 years of building credit history.

Orin
Orin

I would opt for privacy for life than a little bit of time building credit. Plus you can build credit pretty fast by getting yourself a secured credit card and adding yourself as an authorized user to someone’s card that has a good payment history.

Dubya
Dubya

These are the EWS banks. They are already sharing this info about you. Nothing new here.

Scotty
Scotty

“The bank-account data will be reviewed after banks try to check applicants’ credit scores and find that they don’t have one, according to people familiar with the matter.” Per WSJ article. I doubt people who read this site have no credit history. Again people should look into things before go off on it based almost entirely on speculation and hearsay.

Emmett
Emmett

You can say that again. People wonder how others go hysterical from being fooled by fake news. It’s because apparently not many possess the discipline to sit and carefully read the entire story, only the headline or first paragraph…

m0n1nd3r
m0n1nd3r

I also doubt that the back will have enough (cough-cough) self-discipline to look at checking account info ONLY for people without credit scores.

Matt
Matt

Do not approve.

MORRIS
MORRIS

I do not approve this!!!