Can a Computer Really Help You Choose a New Credit Card?

artificial intelligence software

If you’re a fan of science fiction, you’ve known about artificial intelligence (AI) for many years.

Now artificial intelligence software is becoming more prevalent in personal finance management. New developments are making dreams of robots we can interact with reality.

Before you know it, a computer might even help you choose your next credit card!

What is artificial intelligence software?

Artificial intelligence software uses machine learning and neural computer networks to become smarter as it works. If you tell a computer something, it will remember it in the future. It also remembers decisions made by others and may take that into account when interacting with you.

Below is a clip from a live demonstration of AI from the 2017 LendIt USA conference in New York. The AI helps someone choose a credit card based on a few questions. The software – created by Soul Machine in conjunction with IBM Watson – includes realistic 3D video with a voice-activated interface.

AI is improving so rapidly that it may be able to help make some decisions for you. For example, say it looks at your spending habits, credit card balances, and other financial data. The computer can then figure out some of your priorities without any input from you.

AI will understand your existing credit

AI will soon be able to help you understand all aspects of your finances and use that information to make better decisions. The artificial intelligence software will even be able to recognize you.

In the video above, the AI asks for the user’s credit score. AI that has access to your personal finances, similar to successful financial management apps, draws from your credit and spending history. It will look at your credit score, credit cards, and a list of banks you use. This helps it determine what cards may be a good fit.

Whether you want a card with a low interest rate or rewards, the artificial intelligence software does the heavy lifting.

AI will know if you qualify

Today, getting a credit card requires an application. You won’t know until you hit “submit” if you will be approved. Even when you apply online, the bank may need extra time to review your information before making a decision.

While it is a long way off, AI systems may be able to give you an answer before you even apply.

The artificial intelligence can use your credit history to instantly pre-qualify you for a list of cards. Based on the result, it can show you a list of cards to choose from.

AI will keep getting smarter and better

Artificial intelligence software is already slowly making its way into our lives. Google Home and Amazon Echo owners know some of the benefits from interacting with their home assistants. This is just the beginning; artificial intelligence software is always learning and improving.

With machine learning, your relationship with your bank and credit card companies will become much more personalized. You can get a glimpse of what this will look like with some emerging personal finance AIs.

If you want to start with an AI right now, one of the best options is Penny. This app can’t help you choose a credit card just yet, but it can analyze and help you manage transactions on your existing credit cards.

The above demonstration of artificial intelligence software from IBM Watson is amazing, but there are some who have privacy concerns. Just like using an app like Mint.com, using artificial intelligence software requires giving the computer access to your financial information.

Digital assistants that exist today already concern privacy advocates, but implementing a full AI, as Google is planning to, opens up a pandora’s box of privacy questions.

Artificial intelligence software and personal finance are just getting started

We have finally reached a time when virtual reality, AI, machine learning, and neural network computers are a reality.

Today, signing up for a new credit card requires a good bit of research and time. That won’t be the case forever. Artificial intelligence software will soon help you pick your next credit card. It will also help you manage the rest of your financial life. There is no limit to the possibilities!

Interested in a personal loan?

Here are the top personal loan lenders of 2018!
LenderRates (APR)Loan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Finance Lender Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
  2. Personal Loans: Fixed rates from 5.49% APR to 14.24% APR (with AutoPay). Variable rates from 5.29% APR to 11.44% APR (with AutoPay). SoFi rate ranges are current as of December 1, 2017 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.29% APR assumes current 1-month LIBOR rate of 1.34% plus 4.20% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

2 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate Disclosure: Fixed interest rates range from 5.99% – 16.24% (5.99% – 16.24% APR) based on applicable terms and presence of a co-applicant. Lowest rates shown are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Benefit: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.
7.39% - 29.99%$1,000 - $50,000Visit Upstart
5.29% - 14.24%1$5,000 - $100,000Visit SoFi
8.00% - 25.00%$5,000 - $35,000Visit Payoff
5.99% - 16.24%2$5,000 - $50,000Visit Citizens
5.99% - 35.89%$1,000 - $40,000Visit LendingClub
5.25% - 14.24%$2,000 - $50,000Visit Earnest
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Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print, understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

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