By now everyone has at least heard about how important their credit score is. Some of you may even know that you have a different credit score depending on what it is being used for. One for buying a car, another when you apply for a mortgage, even one when you apply for a new insurance policy. As the world is getting its collective head wrapped around all of these credit scores, here comes a new kid: the predictive credit score.
What Is a Predictive Credit Score?
Your predictive credit score isn’t very well known because it doesn’t affect your ability to borrow. It mainly affects what makes its way into your mailbox and how much you may have to pay for some items.
This is how the Federal Trade Commission (FTC) describes your predictive score:
”What most consumers don’t know is that data brokers offer companies scores for other purposes unrelated to credit – for example, for marketing, advertising, identity verification, and fraud prevention. Businesses use these scores to decide which transactions require further scrutiny, what offers and prices to offer certain consumers, and even in what order to answer a consumer’s customer service call.”
So, basically, a predictive credit score is a way for third-parties to estimate/predict what your credit score, in order to assist them in all kinds of different areas. Although it may sound like what Credit Karma, or one of the other credit score estimators does, it’s actually quite different.
How To Know More
Since your predictive credit score affects things like which offers are made to you and at what price, it is important to understand it. After searching online for as much information as possible, I came up empty handed, well, except for the quote above. Since this is just about all of the information available to the vast majority of consumers, the FTC, has decided to offer a seminar/webinar on the topic. It will take place on March 19, 2014 at 10:00 a.m. EST. You can get more details at this link: http://www.ftc.gov/news-events/events-calendar/2014/03/spring-privacy-series-alternative-scoring-products