When browsing the internet and doing business in China, we recommend you take certain precautions. If you wake up in the middle of the night, say, between 2 and 4 am and are unable to go back to sleep, we suggest that you do not pull out your computer and browse the internet. You should also steer clear of websites that offer quick loans, and you should invest in an Otter Box phone case; because if you should drop and break it too often, you may need to buy too many new phones. If you decide to shop online, we recommend you do not buy camera equipment, but rather scuba gear, and finally, we suggest you buy curtains for your office.
The reason for all of this? Simply because it may affect your credit rating.
But one day, your credit rating may affect you far more than just determining your ability to get a loan. It is rumored that it could affect your access to healthcare, employment, education, and even your “good citizen” status. Not to mention, their ability to absorb this information and collect this data is an invasion of privacy by the government.
A new government-backed effort to increase lending to those that lack financial history or collateral, sparked the rise in these new ratings systems. This allows companies offering loans (everything from business loans to credit with retails shops) to analyze non-traditional indicators to determine who is credit-worthy.
Thus, private corporations are able to access the records of Chinese internet users. They simply must obtain a license from the central bank to do so. Thus far, 8 of these licenses have been granted.
But it doesn’t just stop at financial activity. A higher rate can give you access to the fast lane in airport security. It can make it easier for you to adopt a pet, and even can give you faster approval of foreign visa applications.
A separate initiative, expected to come into play as early as 2020, will use these credit ratings to develop a “score” of trustworthiness for individuals. Thus far these initiatives are theoretical, but would it really surprise you if they became reality?
Listen to this Podcast About Big Data & Privacy
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