SoFi Joins the No FICO Zone and Brings Fairness to Lending
When I say “No Debt, No Credit, No Problems”, what do you think about?
NO DEBT – YEAH! I could go for that.
NO CREDIT – Whaaaaaaa? You gotta have credit!
NO PROBLEMS – Wait, what kind of riddle is this?
Well, the times – they are a-changin’. You do NOT need to focus on your credit to be successful or to even qualify for a mortgage.
In fact, the traditional credit worthiness measures are under fire because enough people are finally coming to the realization that the Emperor Has No Clothes!
Some of them are abandoning the one-sided measurement of debt system developed by FICO, which has been around for at least three decades.
Today, we talk about a broken piece of the financial system and what one company is doing to bring fairness to the marketplace.
Dan Macklin, Co-Founder of SoFi, joins us in the No FICO Zone!
They evaluate applicants based on a holistic view of their financial well-being rather than a three digit score.
DAN MACKLIN’S STORY
I found myself beholden to the all-powerful credit score, taking out loans I didn’t need and credit cards I didn’t want just to improve my number.
The whole process felt counterintuitive – especially when those credit card companies increased my limits and encouraged me to spend more (a temptation that probably leads to lower credit scores for many).”
Dan shares statistics that 63% of young people don’t have a credit card – one of the simplest ways for people to build a credit score. Without it, they may not be evaluated fairly when looking to rent an apartment or purchase their first home.
ALSO IN THIS EPISODE
Andy Magnus from ProactiveTaxPros.com explains how 3 branches of government affect tax policy.
Tom Corley found the rich either made their own luck or found it – and tells us where to find ours!
I’m giving away a copy of Tom Corley’s upcoming book “Change Your Habits, Change Your Life” (click here)