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FINANCE

Passport by FormFree – Beyond Credit Scores, a Brighter Financial Future

The credit score may soon seem as outdated as rotary phones and roll-down windows as financial services companies and consumers discover the brand-new Passport Wallet® by FormFree. FormFree has sought to democratize lending for all people without bias, providing inclusion within an industry in desperate need of restructuring — with their new Passport Wallet® app and Residual Income Knowledge Index® (RIKI®), FormFree aims to rewrite the lending rulebook one qualified loan at a time.

Passport Wallet by FormFree isn’t just about fairness for borrowers. It’s a lifeline for lenders, too. In this crazy loan market, where qualified borrowers slip through the cracks, and lenders struggle to fill their quotas, Passport Wallet is a win-win: borrowers get the loans they deserve, and lenders find the perfect matches faster. The best part is it avoids any and all racial biases that often coincide with money lending.

Biases in Money Lending? How Does That Work?

An unfortunate reality faced by many looking for an approved loan is the persistence of biases within the financial realm. This includes a lower approval rate for minority business owners of color, higher interest rates for black mortgage borrowers, or a 12% denial rate for home loans among Hispanic Americans, along with a multitude of data further highlighting these unfortunate exclusions.

Many studies have found that location is a key factor in these biases. For instance, Black applicants based in Chicago were 150% less likely to be approved by financial institutions than similar White applicants living in the same neighborhoods. No matter how you slice it, redlining holds strong in many cities within the U.S., and economic inequality is a lingering issue for many households.

Outdated systems are also a prominent factor in racial biases for loans. Certain credit scoring algorithms most often reward traditional credit, which White Americans have greater access to than people of color. While more fair credit score models have arisen over the years, the problem primarily lies within the nature of credit scores on a bare-bones level. A three-digit number has all too much power for those seeking loans.

What’s the Deal with Credit Score, and How Does FormFree Help?

For too long, credit scores have had the final say in whether someone can or cannot qualify for a loan. A simple number can dictate a person’s entire financial scope, and the team at FormFree understands this must change. Whether it’s looking to buy a home, getting a quick personal loan, or exploring auto financing options, credit score has an unfair advantage in the process.

The statistics show the real problem — 86% of Black Americans and 15 million Hispanic Americans have a credit score below 659, and 50 million Americans either don’t have a credit score or a score too low to access a loan according to recent numbers from National Fair Housing Council. When nearly a third of the population is without the proper necessities (in this case, a 3-digit number) for life-changing investments, something needs to change. There must be an easier way to qualify for a loan.

Passport Wallet generates a user’s Medallion, which shows lenders their borrowing power. It bypasses credit scores entirely, offering a new approach built upon anonymized data.

How Do Medallions Differ from Credit Scores? Introducing RIKI by FormFree

If FormFree’s Medallion generates an individual’s buying power, isn’t it the same as a credit score? Not quite!

Enter RIKI Picture RIKI like a financial X-ray, looking beyond the credit score’s blurry lens. Regardless of race, gender, age, or socioeconomic status, RIKI utilizes the patent-pending Ability to Pay® (ATP®) measure based on income and spending. Ability to Pay does exactly as it says — it demonstrates your ability to repay a loan to a lender.

RIKI leverages various factors to accumulate your Medallion. It peeks into your bank account, analyzes your income and expenses, and paints a clear picture of what you can comfortably handle loan-wise. No more mystery, no more unfair rejections based on a single number. Just honest, transparent assessments based on your real financial situation.

Better yet, Passport Wallet and RIKI can actually help borrowers get lower interest rates. Since RIKI provides lenders with more information than just a credit score, they better understand who they’re lending their money to. Less risk is involved, meaning interest rates can trend downward when built on trust.

Is Leveraging Data to Provide Easier Loans an Invasion of Privacy?

As leveraging data becomes the status quo for many tech and finance industries, consumers rightfully feel the need to protect their privacy. Do banks have full access to someone’s financial scope through RIKI? Well, FormFree hears those concerns and has the means to alleviate them. And the answer, simply put, is no; they do not have full access and never will.

Banks take security seriously, and so does FormFree. They use the same cutting-edge technology and rigorous protocols to protect your data but with a user-friendly approach that makes managing your finances a breeze. With FormFree, your personal information is secure, and your data is always encrypted and protected no matter who you receive a loan from.

How Does Passport Wallet by FormFree Expedite the Loan Process?

While qualifying for a loan without a credit score is certainly a win for many households, the beauty of FormFree’s Passport Wallet is the ease of access, navigation, and overall simplicity. With FormFree, you can legitimately qualify for a loan within minutes.

After a quick (and completely free) sign-up, Passport Wallet users are prompted to link their bank account, using bank-grade encryption to keep info secure. Passport Wallet then uses RIKI to analyze this data and create a financial profile. Once analyzed, you’ll receive what is referred to as a Qualified Borrower Medallion, which demonstrates your ability to pay to potential lenders.

Since data privacy is at the forefront of everything FormFree does, they only share your contact info with a lender once you’ve chosen a desirable loan option. They’ll never hold on to this information permanently and won’t sell it to marketers.

Paving the Way for a More Inclusive Financial Landscape

FormFree might just be the long-awaited solution to credit score-based loans, welcoming in a new way to embrace inclusivity and empowerment in financial services. As new possibilities for financial growth and stability beckon, it’s tremendously important to take note of pre-existing biases and the unfortunate potential for new ones to arise.

So, ditch the credit score blues and grab your phone. Passport Wallet by FormFree is your ticket to a brighter financial future. No more endless paperwork, no more waiting in line, just a quick, secure process that puts you in control of your financial story.

Download Passport Wallet to get started today, and learn about FormFree’s 220 years of combined experience in housing finance, data research, and FinTech.

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