Rachel Webster

That would be a generous mission, but I don't think we can give capitalism that much credit. Do you know what FICO stands for?

That would be a generous mission, but I don't think we can give capitalism that much credit. Do you know what FICO stands for?

The S doesn't stand for financial.

The S doesn't stand for financial.

Fun is... Think of a celebrity couple portmanteau.

Fun is... Think of a celebrity couple portmanteau.

Bill Fair and Earl Isaac. Oh. They're FICO. Okay, so just like two random dudes? Mm-hmm. Two unassuming data analysts set up a system that became the number one way that lenders can evaluate the creditworthiness of consumers. Okay, so this FICO system helps us get credit? Sure. But more importantly, it helps credit card companies collect information about us and our spending behaviors.

Bill Fair and Earl Isaac. Oh. They're FICO. Okay, so just like two random dudes? Mm-hmm. Two unassuming data analysts set up a system that became the number one way that lenders can evaluate the creditworthiness of consumers. Okay, so this FICO system helps us get credit? Sure. But more importantly, it helps credit card companies collect information about us and our spending behaviors.

So it's like a spy? Yeah. Yeah. Remember when spies were sexy? Now they're just data analysts. But here's where it gets tricky to follow. So FICO is a score. And the credit bureaus, you might have heard of them. Oh yeah, you mean like Experian, TransUnion, Equifax? These bureaus use that score to help determine what to lend you. Okay. And they also work with FICO to create the score.

So it's like a spy? Yeah. Yeah. Remember when spies were sexy? Now they're just data analysts. But here's where it gets tricky to follow. So FICO is a score. And the credit bureaus, you might have heard of them. Oh yeah, you mean like Experian, TransUnion, Equifax? These bureaus use that score to help determine what to lend you. Okay. And they also work with FICO to create the score.

A conflict of interest? Yeah. Good question. It's hard to know who is what and what is who. That is confusing. We learned a little bit more about these self-appointed behemoths of judgment from our favorite Welsh-American journalist and iconic podcaster, John Ronson.

A conflict of interest? Yeah. Good question. It's hard to know who is what and what is who. That is confusing. We learned a little bit more about these self-appointed behemoths of judgment from our favorite Welsh-American journalist and iconic podcaster, John Ronson.

In 2005, John wrote a story for The Guardian about a man named Richard Cullen who died by suicide after racking up over $130,000 in credit card debt. Debt that started when he took out a $6,000 loan to cover a medical procedure and quickly spun out of control from countless extensions.

In 2005, John wrote a story for The Guardian about a man named Richard Cullen who died by suicide after racking up over $130,000 in credit card debt. Debt that started when he took out a $6,000 loan to cover a medical procedure and quickly spun out of control from countless extensions.

This guy that John is talking about is Richard Weber. And he built a program that can identify what people might want to buy based on where they live.

This guy that John is talking about is Richard Weber. And he built a program that can identify what people might want to buy based on where they live.

That's right, Experian, the same company that determines our credit worthiness.

That's right, Experian, the same company that determines our credit worthiness.

When Richard Weber wrote the software for Experian, he created reductive categories for people based on their postcodes and described each group with blunt, aphoristic titles.

When Richard Weber wrote the software for Experian, he created reductive categories for people based on their postcodes and described each group with blunt, aphoristic titles.