Today, we are proud to release the beta version of the NGPF Assessment Bank. You asked for this in our recent surveys and we are delivering a set of 25 multiple choice questions for each of the five most frequently used NGPF Units. The assessments are now available in two places: online on our Gooru platform and a Google Docs version for those who prefer a paper version.
Here are the units currently available with links to the two versions:
- Checking……… Google Doc | Gooru
- Savings……….. Google Doc | Gooru
- Credit Scores.. Google Doc | Gooru
- Budgeting……. Google Doc | Gooru
- Investing………. Google Doc | Gooru
Can you provide more detail on the two ways that I can access the NGPF Assessment Bank? Continue reading
Answer (from CFPB and Consumerist): Credit reporting agencies (three of top four) and banks
Answer (from Fair Isaac): 695
Nice chart too, showing percentage of consumers within certain credit card bands:
The obvious question is why have credit scores been rising..the answer courtesy of NY Times: Continue reading
The last few years have seen a number of start-ups lending money based on factors other than credit scores. Here are a few highlighted in a recent Economist article:
- Karrot: “Karrot worries less about borrowers’ credit history—the conventional approach—than about their cash flow. Customers must allow Karrot to monitor their current accounts and other financial data, such as credit-card bills. A big decline in income prompts an inquiry about an extended payment plan (to pre-empt a default); an increase prompts an offer of more credit. The initial evaluation takes only four minutes. Growth has been impressive: Karrot expects to lend $1 billion this year. Its default rate is 5%.”
- Upstart: “Upstart, based in Palo Alto, is another firm learning to look beyond the credit record, in this case to borrowers’ educational history—an indicator of future earnings and thus the capacity to repay debt.’
Thanks to Megan Strand producer of “Life Hacks for Working Moms” for interviewing me for her recent podcast. Enjoy the 20 minute podcast here.
Here are the details: Continue reading
For the history lovers out there, a Time article provides an almost 200 year history of credit reporting. A few interesting morsels:
- Earliest credit reports were character based: “In 18th-century America, for instance, country storekeepers secured loans by asking well-regarded neighbors to vouch for their character to bankers and merchants. And urban creditors mined far-flung rural acquaintances for rumors and hearsay regarding applicants for credit.”
- Retailers saw benefits of selling on credit and therefore were early pioneers in developing credit histories on their customers: “Eager for these workers’ hard-earned dollars, many retailers—including America’s newfangled department stores and auto industry—extended generous credit lines.”
From Federal Reserve:
Answer: 13.5% in June 2015. Note that this rate will likely be much higher for millenials who may have lower credit scores due to their short credit histories. Interesting to note the sharp decline in rejection rate in the most recent reporting period as lenders seem to be loosening their standards.