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Credit Scoring in the United States

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  • Kiviat, Barbara

Abstract

Credit scoring is the paradigmatic example of algorithmic governance (Fourcade and Healy 2017; Pasquale 2015). Corporations take information about thousands of individuals, data mine it for patterns that predict people not repaying their loans, and then make decisions about future lending-who gets money, how much interest they pay-based on variables that predicted default in the past.

Suggested Citation

  • Kiviat, Barbara, 2019. "Credit Scoring in the United States," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 21(1), pages 33-42.
    • Handle: RePEc:zbw:econso:223110
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    File URL: https://www.econstor.eu/bitstream/10419/223110/1/Econsoc-NL-21-1-05.pdf
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    References listed on IDEAS

    as
    1. Poon, Martha, 2009. "From new deal institutions to capital markets: Commercial consumer risk scores and the making of subprime mortgage finance," Accounting, Organizations and Society, Elsevier, vol. 34(5), pages 654-674, July.
    2. Martha Poon, 2009. "From New Deal institutions to capital markets: commercial consumer risk scores and the making of subprime mortgage finance," Post-Print halshs-00359712, HAL.
    3. David Durand, 1941. "Risk Elements in Consumer Instalment Financing," NBER Books, National Bureau of Economic Research, Inc, number dura41-1.
    4. Anderson, Raymond, 2007. "The Credit Scoring Toolkit: Theory and Practice for Retail Credit Risk Management and Decision Automation," OUP Catalogue, Oxford University Press, number 9780199226405.
    5. Thomas, Lyn C., 2000. "A survey of credit and behavioural scoring: forecasting financial risk of lending to consumers," International Journal of Forecasting, Elsevier, vol. 16(2), pages 149-172.
    6. Thomas A. Durkin, 2000. "Credit cards: use and consumer attitudes, 1970-2000," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), vol. 86(Sep), pages 623-634, September.
    7. Gunnar Trumbull, 2012. "Credit Access and Social Welfare," Politics & Society, , vol. 40(1), pages 9-34, March.
    8. Martha Poon, 2009. "From New Deal institutions to capital markets: commercial consumer risk scores and the making of subprime mortgage finance," Working Papers halshs-00359712, HAL.
    9. Martha Poon, 2009. "From New Deal institutions to capital markets: commercial consumer risk scores and the making of subprime mortgage finance," CSI Working Papers Series 014, Centre de Sociologie de l'Innovation (CSI), Mines ParisTech.
    10. David Durand, 1941. "Risk Elements in Consumer Instalment Financing, Technical Edition," NBER Books, National Bureau of Economic Research, Inc, number dura41-2.
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    Cited by:

    1. Eglė Jakučionytė & Swapnil Singh, 2023. "Emergence of subprime lending in minority neighborhoods," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(6), pages 1547-1583, November.

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