Financial Control = Financial Freedom

By: Geff Woodward

In today’s world, it is easy to feel that we are not in control. Data, information, and even opinions are collected, interpreted, and managed by a variety of services that we engage with as we move throughout our daily lives. This is especially true when it comes to our finances, especially with regard to credit scores. The credit bureaus collect data on our credit and loan activities from our creditors and use it to generate a credit score about us.  While we are integral in this activity, we do not manage, control, or even own that data and have very little insight into how our credit score is created - let alone any ability to dynamically affect the resulting score.

What are we to believe? That one size fits all? Or even that three sizes fit MOST? When we think of clothing that way, logically it doesn’t make sense given all the varieties of humans out there. But that is what the credit scoring system has done to our finances. They’ve split us up into small cohorts, based on zip code, job type, and income. This means that we are not measured objectively within the entire demographic of consumers with credit scores.

What about international consumers? Credit scores from other countries don’t count in the US, and a migrant has to then start from scratch. What about people who don’t already have credit? 

Not everyone’s lifestyle, life stage, current financial situation, financial needs, and financial goals are the same. So why should your credit score be determined by your ability to have debt, rather than your proven ability to service your debt properly? It shouldn’t! Your life is unique and in flux. You should be measured holistically, objectively, and transparently. What may be true about your financial life today may not be the next.

There’s a lot of misinformation and confusion around the credit scoring system. Because even if you don’t realize it, credit companies are also trying to sell something – your data.

Financial author Nathan W. Morris suggests, “It’s not always that we need to do more but rather that we need to focus on less.” 

VeraScore is different. With VeraScore, you own your data and your score, period. You decide if and when to provide that information to a creditor. VeraScore can also help you organize and clarify your financial goals so that you can prioritize and plan. The VeraScore factors show you objectively, holistically, and transparently how you are performing financially, and allow you to adjust your behavior and have a realistic view of your financial health. Seeing the trends and adjustments you might want to make can help you plan accordingly and get the most out of your money – now and for the future.

You can look at risk vs. return, saving vs. paying off debt, retiring now or later, or spending in retirement. Then you can prioritize and feel comfortable moving forward. Credit scores examine none of these things.

You wouldn’t take just one medication if you have ten problems. Financial health is equally complex. But in order to take control, first you must be able to measure all the parameters and analyze that data. Fortunately, VeraScore does this for you. It’s the only app that analyzes all your financial data, from all your accounts, and presents you with a true picture of your financial health in a clear and friendly dashboard – without judgment. This allows you to easily understand the actual status of your finances and take appropriate action.

Maybe it’s a cliché, but what really drives VeraScore, and drives each and every one of our team members, is to help people, to impact people’s lives in a positive way, to remove inequality, and change a little bit of how the system (doesn’t) works.

That’s why, in our mission statement, we explicitly express:

VeraScore levels the playing field for individuals, especially those that have been underserved or felt “left behind” by traditional credit scoring companies. We promote financial literacy and empower people to take control of their financial health, which will ultimately make them a more compatible match for potential lenders.

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The Relationship Between Credit Scores & Default Probability

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How the Credit Scoring Industry Works (and Doesn’t!)