For more than 25 years, having a good credit score was the only way to get a credit card. Now there’s a movement to put credit cards in the hands of folks who have no credit score at all. It’s all part of a federal government initiative to make credit available to folks whom banks didn’t consider trustworthy before.
<ul><li>FICO credit score or one from several other scoring agencies has been the major tool that banks use to decide whether they will lend money.</li><li>Score is based on how individuals handled credit in the past.</li><li>If you've never been extended credit, you won’t have a credit score.</li><li>Banks now view this group as a vast, untapped market</li><li>Banks will share their data on customers' deposit accounts with other banks.</li><li>10 of the nation’s biggest banks will now consider credit card applications based on a person’s checking or savings</li><li>The main government agency behind the push is the Office of the Comptroller of the Currency whose mission is “to remove barriers for minorities and underserved people to fully and fairly participate in the nation's economy.”</li><li>Why are banks suddenly willing to extend credit where they haven’t before?</li></ul>Next, Rob answers these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:
<ul><li>If you just got married and both of you have previous savings, how much should you save after your bills are paid?</li><li>If you're considering an $80,000 addition to your home that is paid for, should you wait until construction material prices go down?</li><li>If you're 45, have $125,000 in 401(k) and $55,000 in an annuity, and are on track to have your home paid before you retire, are you on a good path for retirement?</li><li>If you've been married for 27 years but now you're about to divorce, what are the best steps to get on track with your new finances?</li><li>If a friend has suggested you use a HELOC instead of tapping the emergency fund you have set up, is this a good idea?</li><li>If you're 57 years old, is there any reason to start a Roth?</li><li>How much can you saving into a retirement fund from an S-Corp?</li></ul>Be sure to check out the rest of MoneyWise.org to connect with a MoneyWise Coach or access our books and our many free helpful resources. You can also find us on Facebook (MoneyWise Media) and join the conversation. Thanks for your prayerful and financial support that helps keep MoneyWise on the air. And if you'd like to help, just click the Donate tab at the top of the page.

FaithFi

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There’s a movement to put credit cards in the hands of folks who have no credit score at all. It’s all part of a federal government initiative to make credit available to folks whom banks didn’t consider trustworthy before.

No Credit Score? No problem!

FaithFi | Oct 7, 2021

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