

Young, Broke, and Creditworthy - pstan26
http://www.forbes.com/sites/laurashin/2015/01/21/young-broke-and-creditworthy/

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ChuckMcM
I find these sorts of things interesting but really the challenge here is
pricing the risk. So these folks get even more invasive into your financial
history in order to predict if you're going to be able to repay, which is
great, you can pick up business at the margins that way, but they don't have a
good way of pricing out the tail (say these folks have a car accident and
can't get to work for a few weeks and get fired, etc).

I have added these folks to the experiments in finance that I'm
following/interested in and I hope they are successful. If they are are I
think it will open up more credit to young people which is a good thing, but
if they aren't I expect it will have the opposite effect (which is that banks
will be even less willing than they are now to lend).

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sjp2705
There's no reason to expect correlated tail risk other than due to
macroeconomic factors. Diversification will take care of idiosyncratic
volatility.

