Why can't people opt-out? Aren't there privacy laws that allow people control of their data? For instance, so that they can request to have a copy of all the data a given corporation has on them and to have them delete it as well?
This is somewhat true, but because weight is given to credit reporting data that shouldn’t be. Past performance is not entirely indicative of future performance. Several large commercial banks are moving away from FICO because of this, and cashflow underwriting is normalizing (with you being underwritten based on actual fiat flowing through your deposit account versus credit payment history). This is also beneficial to folks with a “thin file”, or not a lot of credit history.
https://helloskip.com/blog/is-the-fico-credit-score-going-aw...
https://www.crai.com/insights-events/publications/use-cash-f...