When the FICO score was introduced by the Fair Isaac Corporation in 1989 it was created to help businesses make better lending decisions. Removing some of the subjectivity from the lending process was seen as being more fair and balanced.

However, in the 33 years since the introduction of the FICO score something very different has developed…the removal of humanity from the financial lending process. There used to be a human being who would sit across from you in a bank, a person who had more discretion than the automatic coldness of a computer. They would look at your history of debt, payments, assets, and income and make a decision on whether you could afford to take on the new debt you were seeking.

Was this system perfect? No, of course not. But is the current system perfect?

A computer or mathematical formula, no matter how cold and calculating it may be, does not discriminate based on race, gender, or sexual orientation. It also does not judge you based on the way you look or speak. But it also doesn’t have compassion or instinct. The “friendly” bankers of old were sure to do the things that human beings do, judge people, and fall victim to their own biases. 

“That beatnik doesn’t get a car loan, look at how his hair is cut”

“I don’t care for the color of that man’s skin”

“Women aren’t responsible enough for this kind of loan”

These are for certain all things you could have heard if you went into a bank in 1969 looking for a mortgage. But at the same time, you might have also heard…

“He seems like an honest guy”

“I like the way she carries herself”

“That young man has confidence, he’s going to make something of himself”

Make no mistake, the FICO score was not created to protect or benefit the consumer, it was made to help businesses make more money. It was made to fill the pockets of men who see themselves as your betters and it was made to keep you in your place.

Now how do we go back to that old "flawed" system but protect the consumer and eliminate bias…

Laws. That’s how...laws. Laws that protect the consumer. Laws that punish those who allow their bias to deny people a means for a better future. We create new, better laws. Laws that guarantee people who meet certain basic criteria access to the financial tools they need to succeed. Laws that protect people from unfair practices and discrimination. We build a better system that is not designed to “keep you in your place” but instead elevate you.