Can Bots Wreck Your Credit Score?
By now, it is obvious to everyone that bots do not think; they merely remix the information that is already available to them. Despite this, humans authorize algorithms to make decisions all the time. Of course, it is reasonable for algorithms to decide which web pages to display in response to a given search query; ask your parents what life was like before search engines, or better yet, ask a librarian your grandparents’ age how much work it was to search for relevant information in the old days. In the interest of time efficiency, humans have put bots in charge of some important financial decisions, including deciding what loan terms to offer, and the result is that the bots, predictably, remix the status quo so that the rich get richer and the poor stay broke. It takes considerable human effort to get out of the financial mess that the bots have exacerbated. The first step to getting out of debt is to contact a live person, namely a Philadelphia debt relief lawyer.
Bots Are Capable of Setting Unfair Loan Terms, Too
Perhaps you have heard the saying that those who do not know the past are doomed to repeat it. Bots can look at past data, but they cannot think critically about it; therefore, they only generate more of the same. This is as true when they are churning out essays for enterprising students as when they are pre-screening your resume.
Pursuant to the Fair Credit Reporting Act, determining a person’s credit score is supposed to be an automated job. This law was meant to prevent bias in lending. Before it went into effect, lenders would decide whether to lend to you based on whether you seemed like someone who would pay back a loan, and you can be sure that they discriminated based on race and gender. Long before the commercial availability of the search engine, lenders have been basing loan terms on mathematical formulas, including your credit score. Bots can’t see all the payments you make on time that do not count toward your credit score, including your utility bills and buy now pay later (BNPL) payments. Likewise, if you work in the gig economy, they can only see that your income is inconsistent.
It would be unfair to blame this entire situation on bots, but they make the problem worse by not offering you financial products at all or by electronically trashing your resume before ever showing it to a human being in human resources. It is possible to improve your credit score and rebuild your creditworthiness, but bots are not very helpful. Instead, you need a human lawyer who can help you strategize and negotiate your way out of debt.
Contact Louis S. Schwartz About Improving Your Credit Score
A Philadelphia consumer law attorney can help you get out of a financial rut in which your debt balances are stagnant and no one will lend to you. Contact Louis S. Schwartz at CONSUMERLAWPA.com to set up a free, confidential consultation.