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Currently, loan applications are based on FICO scores along with whatever historical information your financial institution has along with whatever else they get from your loan application. A set of objective rules (FICO score must be above X) and subjective judgements (hey, she's been at our bank for twelve years and always kept a healthy balance) are used to determine if someone's a "good risk" and gets the loan.

Upstart uses datamining and machine learning to identify good credit risks. They're producing consistently better results (more qualifying borrowers and fewer defaults) than traditional methods. I believe that they will eventually make FICO obsolete.
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