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March 12, 2008

Credit scores for illegal aliens

From Glenbrook PaymentNews:

Experian has announced the launch of Emerging Credit Score, a new credit scoring tool developed with eBureau designed to assist lenders in evaluating the creditworthiness of unbanked and underbanked consumers.

For those not in-the-know, "unbanked" and "underbanked" are PC terms for illegal aliens and other Americans who operate in that gray underworld where either your job, criminal enterprise, or immigration status put you at odds with law enforcement. The banks have been wrestling with finding ways to separate these people from their money in much the same manner that they do to those of us who obey the law and pay our taxes. The first step was coming up with the term of "unbanked" and "underbanked" in an effort to sanitize this group of people and separate them from their dubious legality.

One of the consequences of allowing illegal immigration to go unchecked is that there are untold thousands/millions of people who all use Social Security Numbers from a much smaller pool of available numbers. I have read reports that some single Social Security Numbers are being used simultaneously by thousands of people. The problem for the banks in this scenario is, how do we calculate a credit score? If thousands of people are all using the same identity, how do we tell them apart? Experian's answer is to create a whole new model for scoring the criminal underworld.

Maybe this will turn into a new way to build yourself a new credit score. If you have a poor credit rating, or just don't care anymore, you can sell your identity into the human smuggling networks and after you have built up a large enough cadre of people using your identity, you effectively become someone new. And Experian will give you a new credit score in their new "Emerging Credit Score" system. They should have called it Phoenix ... it would be far more fitting.