Saturday, September 16, 2017

Credit Scoring

Seems that the Equifax data hack may affect your ability find a mate.

First, the background. As widely reported, the company said it was hacked in the spring and that the personal data of 143 million people was siphoned off. This follows other notable breaks at companies as diverse as Anthem Health, Home Depot and JP Morgan, plus a host of others including the IRS. In short, unless you have never used a credit card, registered at a web site or paid taxes, odds are that some part of your identity is sitting in a file on a computer in Estonia owned by a guy named Mikhel.

While nearly a 150 million record sets is no small haul, it pales in comparison to the nearly 1 billion Yahoo users hit in 2015. Yet this theft could potentially be the most damaging of them all. That's because Equifax, along with its cousins TransUnion and Experian, are the agencies of record when it comes to our financial lives. They have the most detailed data on each person because they use it to research and issue reports on the credit worthiness of any individual. And that means, as put most succinctly by security Analyst Avivah Litan, "In terms of identity theft, on a scale of one to ten, this is a ten."

That data helps them ferret out every aspect of our financial movements, especially how much we owe and how we handle that debt, which in turn leads to judgements as to how good a credit risk we are. That is used in determining the fabled FICO score, which was created by engineer William Fair and mathematician Earl Isaac in 1956 and named after the first letters of their firm, the Fair Isaac Corporation. FICO scores are, as one scholar put it, "the wizard behind the curtain of the economy." They help companies to determine everything from if we get a car loan, a mortgage, a new credit card or even a job.

But how do they go from influencing things behind the curtain to having an effect between the sheets? Well, according to a study by Discover Financial Services and Match Media Group, more than looks, wit or clothes, your FICO score turns out to be a serious determinant of desirability. True, it's not news that wealth can factor into attraction. But this isn't about wealth per se; rather, it's the ability to manage your finances responsibly as determined by a third party that makes you more or less a catch.

The companies surveyed 2000 online daters, and found that good credit scores are sexier than any other characteristic or virtue you may have. In the study, 69% of respondents rated financial responsibility as an extremely important quality in a potential lover, followed by sense of humor at 67%, attractiveness at 51%, ambition with 50%, courage with 42% percent, and lastly, modesty with just with 39%. And both genders felt the same: 77% of females and 61% percent of men valued financial responsibility highly. And since the FICO score is the most accepted measure of financial responsibility, it seems that a higher score will count more than washboard abs or a little black bikini.

Some have already figured this out. Just like there are dating sites for farmers, Jewish singles or seniors, CreditScoreDating.com seeks to pair like-minded individuals who view personal financial metrics the same way others consider attraction to dogs. Under the slogan "Where Good Credit is Sexy," you sign up and can be matched with others of the same stripe, be it those who are credit challenged ("Credit Clinic") or those who strive for higher levels of perfection ("The 700 Club").

But back to data theft and getting a date. The kind of info stolen from Equifax will make it easier for thieves to open new accounts in your name, take loans without paying them back, and generally create financial havoc to your financial profile. All that could trigger potential downgrades in your FICO score. And that in turn could make you look less desirable to a potential match, causing them to swipe left when before they might have swiped right. That means that the next time you're find yourself sitting home on a Saturday night with the clicker and a quart of Hagen Daz, don't blame yourself. Blame Mikhel.

-END-

Marc Wollin of Bedford has had his data compromised in at least half a dozen hacks. His column appears regularly in The Record-Review, The Scarsdale Inquirer and online at http://www.glancingaskance.blogspot.com/, as well as via Facebook, LinkedIn and Twitter.

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