Summary of "BEWARE: Trump Just Changed Credit Scores Forever! Do This NOW Before Its Too Late!"

Summary

The video discusses a major shift in how credit scores are calculated, moving away from traditional credit bureaus (e.g., Experian, TransUnion, Equifax) toward AI-driven credit risk scoring systems. It specifically highlights the role of Plaid and its new Plaid Lending Score (ticker not mentioned).

Key Finance-Specific Content

New Credit Scoring Methodology

Traditional credit scores rely on historical credit data but miss real-time financial behavior.
Plaid Lending Score uses real-time cash flow data, income patterns, and account connections to provide a more comprehensive and current view of a borrower’s financial health.
The model (LS1) is trained on nearly 1 billion transactions to predict default risk over the next 12 months for unsecured loans.
Plaid’s AI scoring system generates a score from 1 to 99, which lenders use alongside traditional scores to enhance credit decisions.
The system includes compliance features with adverse action reason codes for regulatory adherence (Fair Credit Reporting Act - FCRA and Equal Credit Opportunity Act - ECOA).

Data and Risk Assessment

Plaid collects detailed spending data, including items traditionally invisible to credit bureaus, such as:
- Grocery expenses
- Medication (e.g., insulin)
- Child support payments
- Rent payments
- Cash flow overdrafts
This granular data affects creditworthiness assessments, potentially leading to denials for apartments, mortgages, credit cards, or loans based on real-time spending habits.
Rent payments, which often do not appear on traditional credit reports, are now factored in via Plaid’s data.
Income verification is done through direct deposit tracking, which can negatively impact credit if income is unstable (e.g., government furloughs or layoffs).

Implications for Borrowers

Borrowers need to be cautious about connecting financial accounts to Plaid, as it continuously monitors spending habits.
Recommendations include disconnecting from Plaid after use (e.g., after apartment applications) to limit ongoing data collection.
Couples or family members are advised to consider joint bank accounts to improve credit approval chances by showing combined cash flow.
Managing cash flow carefully to avoid overdrafts is critical, as overdrafts negatively impact the new scoring.
Payments such as child support or college expenses, which were previously invisible to credit bureaus, now affect creditworthiness.
Buy Now Pay Later (BNPL) loans, which often don’t report to credit bureaus, are a concern for lenders who want to control credit risk fully.

Risk Management

The video cautions viewers to be aware of how their financial data is used and to manage spending and account connections carefully. It highlights a potential “trap” where these new AI-driven scores might disadvantage consumers by revealing personal spending patterns lenders never saw before.

Additional Notes

No explicit tickers or financial instruments were mentioned.
The content is informational and not explicitly labeled as financial advice.
Viewers are encouraged to seek further personal advice via the presenter’s website.

Presenter / Source

The video is presented by an unnamed credit expert who runs an “elite credit system” and offers a free hard inquiry removal package on their website.
The speaker provides ongoing updates on credit system changes and offers direct contact for personalized questions.