Life without FICO

Despite its widespread use and acceptance in the lending industry, the FICO credit scoring system is not without its flaws. One of the main criticisms of the FICO system is that it can be unfair to certain groups of people, particularly those with limited credit histories or those who have traditionally been underbanked. For example, individuals who have never had a credit card or taken out a loan may have a low credit score, even if they have a steady income and a good track record of paying bills. Additionally, the FICO system can also be unfair to minority groups, as research has shown that individuals from minority communities tend to have lower credit scores than their non-minority counterparts.