Your Credit Score: A Short History
Prof. Keeanga-Yamahtta Taylor
Professor of African American Studies, Northwestern University
The FICO score was introduced in 1989 as a way to make lending objective. In practice, the algorithm reproduced many of the same inequities it was meant to eliminate — and added new ones.
Key Takeaways
The FICO score was standardized by Fannie Mae and Freddie Mac in 1995, embedding it into the mortgage market.
Median credit scores differ significantly by race — largely due to wealth gaps, not individual behavior.
Alternative credit data (rent, utilities) could help some consumers but raises new privacy concerns.
The CFPB has proposed rules requiring credit bureaus to remove medical debt from credit reports.
Transcript
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Prof. Keeanga-Yamahtta Taylor
Professor of African American Studies, Northwestern University
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