You are your phone
roughtype.com
roughtype.com
So maybe there is a classification that you can determine for minimal users (and I doubt they all come from the same socio-economic group), but aside from GPS logging (which apple tells us the don't do) there are large gaps where they don't know if I'm filing bankruptcy or golfing at a $100k a year club.
I know I'm in the quickly diminishing minority in the world, but if you build your business around using a trove of data that is not available for a subset of potential customers, do you bar them from becoming customers, or fall back to standard mechanisms?
* The article mentions people under representing their usage, so I'll just add that my three year old iPhone 5S is usually at about 95% charge at the end of the day, and the only time I've seen it below 90% was during an extended trip outside, or at the border of reception areas.
Even getting that was a bit of a hassle and they only gave me the small loan (around $5000) because my income and expenses clearly showed I shouldn't have any issues paying for it. Outside of some minor low-interest student loan debt in the $10k range, I just don't have much history.
If I wanted to get a better credit card or some other loan/line of credit, I'd have a harder time getting approved for decent terms because I simply don't like to deal with debt. Like you, this makes me a minority (or at least a less desirable customer for lenders). I'd imagine it's a similar case. Some might decline to do business with me. Others might offer worse terms.
It's kinda unfortunate because in order to prove my creditworthiness, it would seem I need to do things that I consider less financially wise (take out car loans or other lines of credit to establish a record of paying them off).
You would be far better off to get 2-3 cards, ring up some debt on each of them, and then make the monthly minimum payment, on-time, for 6-12 months.
For sure you would see a pretty big jump in your score doing that.
Per Experian (2014): People who paid in full were 63% less likely than average to default six months later, while people making a little bit more than the minimum payment were 86% more likely than average to default within six months.
Cubano's suggestion is a particularly risky thing to do if you have a history of paying in full. Switching from full payments to the minimum can be read as a leading indicator of delinquency.
At least here in Canada. source: I know plenty of people that pay their credit card every month, with 800+ scores.
What is this number and how does one get to know it?
You can (and should) get your credit report, but there's no score there.
This is correct, but misleading[1][2]. A balance is not necessary to gain credit history[0], though a very minimal balance is better than nothing[3]. What matters is utilization rate, which is the ratio of how much credit is used versus how much is available. There is some misunderstanding about "paying it off each month" due to the fact that the CC companies report how much was used during a month not the balance at the end of the month. (ex: with a limit of $1000, $900 was charged then paid off. The $900 is reported, even though it's paid off by the end of the month).
You would be far better off to get 2-3 cards, ring up some debt on each of them, and then make the monthly minimum payment, on-time, for 6-12 months.
This is some pretty poor financial advice. Paying minimum balances is almost always a bad idea from a financial perspective. The same effect could be had by obtaining one card, using about 5-20% of the available balance each month, then paying it off each month. Using this method, the utilization rate is above 0, but below 30%, the length of the CC history is increasing, and no interest is being paid.
[0] - https://www.bankofamerica.com/credit-cards/education/5-facts... Myth #5
[1] - http://www.bankrate.com/finance/credit/credit-score-fall-aft...
[2] - http://www.creditcards.com/credit-card-news/simon-credit-car...
[3] - http://www.bankrate.com/finance/credit-cards/does-card-inact...
Why? If you pay everything off (no interest), the banks make no money, so you're simply not as attractive of a customer to lend money to. So, it's not about the payment, it's about using debt.
Other negatives: Reposession, defaulting on debts, bankruptcy, late payments, having monthly payments over some percentage over your income... it varies by provider (and most of it's automated).
Source: Worked for a 3rd party which does the actual approval and denial calculations for many different providers.
Keep that in mind when striving for a better score.
The thing about credit event streams is that they're very low-detail: basically they amount to, for each credit instrument you have, a series of {pay-period, code} pairs with nine possible codes, R1-R9. Your score is entirely calculated† by taking (a seven-year sliding window of) those event-codes and applying weights to them. R1, the most-positively-weighted event, just means "paid on time this month."
The thing you want to do to build good credit quickly, is to generate as many R1 events as you can. You can carry some of your debt on a card to "stretch" one large charge into multiple R1 events... but a more efficient strategy (that doesn't involve paying any interest) is to simply have several cards, use them all for at least one trifling thing each month, and then pay them all off each month. Three cards you paid off $5 charges on is three R1s, and counts for just as much as one $500 charge you paid in three instalments (also three R1s.)
If you want to dig in and see exactly how much information a CRA will give you, here's a Ruby implementation of the Experian Connect API: https://github.com/ehutzelman/experian
---
† Well, okay, there's also two other things:
1. a positively-weighted factor for how much unused credit each instrument holds each month. Which usually translates to "you get punished for carrying an 80%+ balance on a credit card." The key with this one is that—all else being equal—it's better to have cards with higher credit limits, because then you're not using as much of each instrument's capacity, and that reflects better on you.
2. a negatively-weighted factor for any "hard inquiries" that the credit-reporting agency had to respond to within some time window. Each time you apply for a credit instrument and the loaning institution asks the reporting agency to calculate your credit score for the purpose of determining credit eligibility, that's a "hard inquiry" event. (You can think of these as their own credit event on a "meta" instrument held by the reporting agency itself.) Unlike normal credit instruments, there are no industry standards on how to set the weights or time-window for the effects of "hard inquiries", but the windows are usually short (~6 months), AFAIK. All else being equal, don't quickly, repeatedly apply for credit: each successive loaning institution will see a lower score. (And note the "for the purpose of determining credit eligibility" bit. There's another kind of event, a "soft inquiry", that happens when you—or some third-party on your behalf—just asks the reporting agency for your credit score in order to know it, or background-check you, or whatever else. I'm pretty sure none of the big three CRAs in the US give any weight to a "soft inquiry" event.)
R0 or I0: Not enough credit history to judge risk.
R1 or I1: On-time payment, in 1 month.
R2 or I2: Late payment, in 2 months.
R3 or I3: Late payment, in 3 months.
R4 or I4: Late payment, in 4 months.
R5 or I5: 120+ day late reporting.
R7 or I7: Consolidated debt payment.
R8 or I8: Repossession.
R9 or I9: Default.
I don't mean to imply that getting a loan is always the right idea for everyone, but I think categorizing it as always "less financially wise" is wrong as well.
Can someone enlighten me to the benefits? as I'm sure there are people more knowledgeable than I. My personal preference: I'd much rather be broke, with no debt, than have a ton of cash and debt.
Scenario A: I pay $5k down and get a $10k loan, leaving me with $15k in the bank. I can use that $15k to go on vacations, invest in the market and try to earn more than the interest rate on the loan, or anything else you can think of to do with $15k. Over the course of three years, I pay about $300 per year in interest on the loan.
Scenario B: I pay $15k in cash on the car and have $5k left. This is no longer enough to invest. Since I want to have a cushion, it may cut my vacation plans short or cut a vacation out of the equation entirely. But, three years later, I have $900 more than in Scenario B. Now I can go on my vacation, and maybe even upgrade to first class, but three years have passed.
It's a trade-off thing, for sure. But if you're smart about managing debt, then it can be a worthwhile way to spend your $900 given what it allows you to do with the loaned money in the interim.
I guess to me, I don't see any way that Scenario A makes sense.
It makes people buy new cars at $35k when an equivalent used one at $12k would of done the same thing.
Loans also create an income dependency if you do not have reserves to pay the loan payment while you have no job. While a cheaper fully purchased car is significantly cheaper as far as the monthly payment goes. In the USA a car is pretty mandatory, so that can create a bad situation to be in.
I've considered getting a second car and I guess I could take out a loan instead of just buying it but it would cost me more in the long run due to interest and we don't really need the second car so either way it's money spent unnecessarily. Either way, needing to establish credit is not enough reason to sway me at the moment.
given the equally casual approach most technologists have towards embedding user behaviours into applications, the potential feedback loop of many companies deliberately creating habits in users, and then other firms judging those people based on their collected habits is distressing.
instead of sneaking malware and pop ups on to your computer as you browse, the malware is installed inside of you, as habits. there's no glaring pop up telling me there's something wrong with my windows license.
having uninstalled my social apps for several weeks now, i still find myself turning the phone on and staring at the homescreen for a few seconds. my eyes dully glazed over. it's more insidious than the popup, which i could close with a click. with this, i have to be mindful, and grab back the reins of my body. the process is internal.
given the research on the involuntary nature of habits, i question the ethics of creating these behaviours at all.
is it ethical to create involuntary behaviours in your users?
is it ethical to judge users for behaviours deliberately created in them by applications?
should the attention of users be better protected?
can we start developing consumer applications that aren't deliberately designed to capitalise on the attention of their users?
how can we educate people to navigate a world of applications designed to hold and capitalise on their attention?
media awareness class in high school did not prepare me for this brave new world. :P
Yes. Coke, McDonalds, The Gap and every other consumer company try like hell to create involuntary behaviors in people all the time.
is it ethical to judge users for behaviours deliberately created in them by applications?
Yes. Other than the specificity of the words "by applications", this is what credit scores are designed to do. Madison Avenue in deliberately trying to create behaviors in all of us. A credit rating measures a person's ability to resist that when it isn't financially sound.
should the attention of users be better protected?
No, at least not for adults of sound mind. People are free to make their own decisions, whether that's doing a keg stand or spending 3 hours clicking a button on Farmville. People can be warned about potential dangers, but it probably won't have much of an effect.
can we start developing consumer applications that aren't deliberately designed to capitalise on the attention of their users?
Yes. Or at least, you and anyone else who wants to can. But making products that people use frequently is a common definition of success. Most comapnies aren't going to pass that up because some people have addictive personalities.
how can we educate people to navigate a world of applications designed to hold and capitalise on their attention?
Good luck with that. Education vs the Forces of Capitalism. Winner: Capitalism.
The appeal to authority that you have connected to the actions of corporations in regard to ethics does not answer the question I posed. If you want to discuss these companies in particular, I would say that they have all violated what are considered good ethics many times.
Is their creation of involuntary habits ethical?
> No, at least not for adults of sound mind.
What about children and teenagers then? We ban them from cigarettes and gambling. How about apps that are designed like a VLT?
> Farmville
Wasn't Farmville found to be targeting lonely retirees of questionably sound mind?
> Yes. Or at least, you and anyone else who wants to can. But making products that people use frequently is a common definition of success. Most comapnies aren't going to pass that up because some people have addictive personalities.
The destination of my question was regulation surrounding technology and addictive software. I am not an American, so this notion is not anathema to me. :)
> Good luck with that. Education vs the Forces of Capitalism. Winner: Capitalism.
This is just so cynical it hurts me.
Sounds impossible ;-)
I'm sure conclusions can equally be drawn from the way people try to micromanage their phone behaviors....
Is there anyone here who has given up their smartphone and has any advice on how you did it, and how you are now? Is it even possible to do so working in a tech field?
I feel like, in general, something like facebook just makes my thoughts MORE negative in general.
For instance, I'm a member of some groups for different hobbies, and I've adopted a "one strike and you're out" policy with regard to what people post to the group. If I find a post to be irrelevant to the topic at hand or in any way annoying -- boom, "Ignore all posts from [user]".
I'm saying to myself, "Hey stranger, you tried getting involved in the discussion by posting this, but it didn't live up to my standards, and therefore I never want to see anything you say ever again."
While it's relegated to facebook, I feel like having that kind of attitude in my life can't be healthy.
I've taken the same kind of attitude (towards vitriolic and stupid posts), because when I looked at my reactions to all sorts of those posts, it's inevitably not the way I want to be spending my time. I don't get on Facebook to fulfill my "balanced world view" quota ;) ! Realize that we now have more exposure to other people's opinions than we've really ever had before... IMO it's a healthy way to cope.
fwiw, this is basically the same feeling that alcoholics and other drugs addicts feel when considering giving up alcohol/drugs. "how will i ever cope? i'll be missing out on so much. i won't be able to socialize." like literally, the same sequence of thoughts. the. exact. same.
the 'craving' is the same also. for those of you who don't have addictive personalities, just imagine the feeling when you get up in the middle of the night, thirsty. that feeling of desperately wanting water is what you are fighting with addiction. it's the same mechanism, hijacked by a substance/activity and sent into overdrive. that helpless compulsive feeling that only has one resolution... yeah. same shit different day.
addiction is some pretty fascinating stuff. i always get a kick out of the people who say it's easy to stop whatever you're addicted to. lucky bastards, and they don't even know it.
Now get used to putting your phone down and forgetting about it. My phone exists on demand for me, not the other way 'round. So it might sit on my desk or on my coffee table but it's almost always on silent/do-not-disturb (with the except of a few key contacts like my wife who are allowed to bug me).
A smartphone is an incredible tool. Having access to the internet wherever you are has immense value. Being able to communicate with folks on-demand is very useful. But it shouldn't control your life. So learn to use the tool as just that, a tool, rather than a tether. It can be done!
That's more than social media use....
The reality is, the smartphone is just another in a very very long line of ways to gather information about folks.
Before the phone, there was credit rating agencies, who have access to your entire financial history, including credit card purchases, bill payments, bank loans, etc (for decades, now, Experian, Acxiom, etc, have known more about you could possibly imagine). Then we got the loyalty/reward cards, where people traded their purchase history for low low prices. Then we saw the rise of the internet and cloud services of all kinds (Google and Facebook).
Frankly, I wouldn't even put the phone at the top of my list of concerns, as at least my phone is on my person, and I have some level of control over it...
> Frankly, I wouldn't even put the phone at the top of my list of concerns, as at least my phone is on my person, and I have some level of control over it...
Well, up to a point. A lot of info is leaking through apps, which can be hard to control. http://jots.pub/a/2015103001/
Also, you have to remember to turn off Wi-Fi or companies will use that to track you. http://www.theguardian.com/technology/datablog/2014/jan/10/h...
Obviously you can still be tracked via cell towers, but it's not much of a phone if you turn that off as well ;-)
Basically, it's setting expectations that a dumb-phone text or phone call is how to get you if it's urgent, otherwise you'll follow up sometime in the next 24 hours.
If I use a smartphone again, it's going to be exactly for Uber, Facebook Messenger (basically texting for people I don't want to give my phone number to), and Spotify.
As far as how to wean yourself from your smartphone, I suggest blocking out some time and putting your phone on airplane mode or powered off entirely.
One day, my tablet and my phone were both getting kind of slow after an Android update. I wiped them both back to factory settings, and when I was about to re-install all my apps, I paused for a minute and thought "fuck it, let's not". No more twitter, no more Chrome, no more Slack, no more anything on my phone. And seriously, I don't miss it. For a while I still had the reflex of pulling out my phone, realized that I didn't have twitter installed, and put it back in my pocket. Now, I don't even think about it, and sometimes even forget it at home.
Another thing I do, I sometimes deliberately not plug it, it dies during the night and I can't use it for a while.
Sorry, I don't think there is a magic recipe here.
My line of reasoning went in that I'm buying a general-purpose computing device that has been deliberately constrained to make it as undesirable as possible to actually use like a general-purpose computing device. Why would I want it, when I have a perfectly good IBM PC-compatible/Wintel box at home? For telephony purposes, I've always used dumb cells running some Java ME bare-bones interface or similar. And so I continue to do. It's not like I get cravings to check my feeds if I'm away for a few hours.
On the other hand, the fact that I also feel no need to use any applications associated with the "sharing economy" probably helps, too.
Is it even possible to do so working in a tech field?
Absolutely.
I use social media very little, and only Twitter for sports and other news. I read a lot on my phone (Pocket, HN, Feedly), and I use it as my sole GPS, my sole camera, and my only physical phone.
I hate that I tend to use every idle minute reading or fiddling with it, and it's something I try often to be cognizant of. But, admittedly, I don't do well with it. I'm fairly addicted to using it to stave off boredom.
I would be curious to know if those who have succeeded in giving up their smartphone for a long period of time just replaced their idle time with something else - iPad, laptop, video games, etc. or did they genuinely reduce their "connected" time?
When I re-integrated into professional life, I got a pay-per-minute burner smartphone to cover me for the infrequent cases when I need to make a call or get directions, and I don't have wifi.
Wifi is so ubiquitous for me now (at work, at home, at restaurants/bars/etc) that adding a cell phone does nothing more but give me opportunity to be distracted when I out in the world, living life.
When I had a smartphone that was always connected, I would turn to it for novelty at the faintest hint of boredom. Not having it available has unconditioned that behavior.
So yes, while I still maintain a smart device that has my music and that I can do things with through wifi, eliminating my constant connection to the digital world has been a net positive for me.
Introducing some challenge is a good way to figure out what is really important to you. If you are willing to charge through obstacles to have something, then it probably does actually off value to your life (barring addiction, etc). Then later, take the obstacles out of the way of the good, and stop doing the bad.
Learning there actually are a bunch of people living without smartphones (or leaving them in their pockets) was interesting to see. I didn't really notice there were as many people connecting with each other when I was looking at my screen. Breaking completely from smartphone use for an extended period was necessary for me to start experiencing the value of looking around instead of taking every moment of free time to find some "interesting" new piece of information. However, having the dumb phone was really annoying when it came to texting (T9!), managing contacts, saving messages, viewing voicemail, and obviously no apps. There is a reason basically anyone who has the means wants a smartphone. From my experience, the only benefit of a dumb phone is more time to do what is important to you.
I live in the bay area and work in tech, so it is definitely possible. Now I have a smartphone again, but like other posters, I barely have any apps compared to standard user, and turn almost all notifications off. At the time, I got a "feature" phone for $20 and a $6 per month no contract plan. It is a very cheap experiment to run if you want to try! Just leave your smartphone at home for a week...
I guess it should really be a matter of discipline, since I have a "free" (work provided) phone anyway.
But I'm pretty sure the correlation between loans repayment and very public and easily accessible socio-economic data is much stronger than with those quirky behavioral traits, such as: where you live, did you attend / finish college, how you spell, do you have a job, are you married, etc.
My actual phone is a prepaid flip phone.
(At the risk of invoking "le wrong generation," I'm a Millennial. I find a certain humor in observing how older people are glued to their smartphones in spite of the frequent complaints that are implicitly assumed about me. I will grant that pathological smartphone obsession is a disgruntling phenomenon, but hardly contained to Millennials. I frequently find myself the odd one out not checking their smartphone in a waiting room.)
It's like "data mining" is a hammer and everything is a nail or something.
I specifically carry an unlocked android handset that is not connected to a carrier, and use a custom ROM that allows me to turn off my cell radio to prevent that sort of tracking.
I use a throwaway google account but do sometimes check my real email thru the device (and so have the account on the device as a user), but sometimes turn on wifi location for various reasons, so I can't really tell how much "they" know.
I just wonder...is anything I'm doing really helping things?
Loan providers using this instead of their predatory bullshit system now seems ok to me.
The fact can no longer be avoided: You are your phone. The pattern of smartphone use is the pattern of the self. This is who you are:
Barcode of smartphone use over two weeks.Black areas indicate times where the phone was in use and Saturdays are indicated with a red dashed line. Weekday alarm clock times (and snoozing) are clearly evident.
The Wall Street Journal reports today that Silicon Valley lending startups are looking to base personal loan decisions on analyses of data from individuals’ phones. The apps running on a person’s device, entrepreneurs have found, “generate huge amounts of data — texts, emails, GPS coordinates, social-media posts, retail receipts, and so on — indicating thousands of subtle patterns of behavior that correlate with repayment or default.” How you use your phone reveals more than you think:
Even obscure variables such as how frequently a user recharges the phone’s battery, how many incoming text messages they receive, how many miles they travel in a given day or how they enter contacts into their phone — the decision to add last name correlates with creditworthiness — can bear on a decision to extend credit. Meanwhile, the New York Times today reports on a new study published in Science that reveals how a person’s economic status can be determined through a fairly simple analysis of phone use. The researchers, working in Africa, collected details “about when calls were made and received and the length of the calls” as well as “when text messages were sent, and which cellphone towers the texts and calls were routed through.” They analyzed this metadata to “build an algorithm that predicts how wealthy or impoverished a given cellphone user is. Using the same model, the researchers were able to answer even more specific questions, like whether a household had electricity.”
I am not a number, you declare. I am more than a credit score. You may well be. But the tell-tale phone reveals more than one’s financial standing and trustworthiness. The tell-tale phone reveals all. Take a look at that chart again:
Barcode of smartphone use over two weeks.Black areas indicate times where the phone was in use and Saturdays are indicated with a red dashed line. Weekday alarm clock times (and snoozing) are clearly evident.
It shows the pattern of one person’s smartphone use over a two-week period, beginning late on a Friday afternoon. Each vertical line represents a single use of the phone, the width of the line showing how long the use extended. The chart comes from a new study on phone use, published in PLOS ONE. Four UK researchers installed a usage-tracking app on the smartphones of twenty-three students and staff members at the University of Lincoln, and then examined the data after two weeks. They discovered that “a simple measure — recording when the phone is in use — can provide a vast array of information about an individual’s daily routine.” Data on phone use, to take a simple example, provides “a non-invasive indication of sleep length.” All but one of the test subjects used their phones as an alarm clock on weekdays, and all of them without exception reported that the last thing they do before going to sleep is to check their phone. Gaps in use during the day are also good indicators of naps.
The test subjects used their phones more than five hours a day, on average. Much of that usage went on unconsciously, the researchers found. When the subjects were asked to estimate how often they checked their phone during a day, the average answer was 37 times. The tracking data revealed, however, that the subjects actually used their phones 85 times a day on average, more than twice as often as they thought. “For exploring checking behaviours,” the researchers report, “estimated number of uses show little reliability for measuring actual uses.” We see here how deeply entwined the phone has become with the self — a seamless extension of body, mind, and personality. It is so much a part of us that we are no more conscious of the device moment-to-moment than we are of, say, our hands.
If the mere tracking of phone use reveals how we spend our days, our diurnal routines, imagine what would be revealed by a deeper analysis, one that examined the apps we use, the people we connect with, the things we look at and listen to, what we say and what we write and what we like, where we go, what we search for, the photos we take. It’s all there, public self and private self. There’s no shame in admitting the fact: You are your phone.