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The credit system in America is broken. Instead of acting as a gateway to financial services, its outdated lending models and inherent biases are preventing hard-working Americans from getting the credit they need.
That’s what Brent Chandler, the founder and CEO of FormFree, believes. As an insider in the financial sector, Chandler knows that unfair and arbitrary credit metrics are keeping millions from accessing financial services, particularly young people, people of color, and disadvantaged individuals.
“The current system, governed by a select few, widens the gap between those with reliable credit access and those left behind,” Chandler said. “To better serve these communities, the mortgage industry must adopt more inclusive lending models.”
FormFree is redefining what it means to be creditworthy based on metrics that reflect a person’s actual buying power and ability to pay, incentivizes lenders to compete for potential borrowers. This is contributing to a more competitive and inclusive lending market that benefits all Americans—not only those who fit within the narrow definitions of creditworthiness based solely on the traditional credit score model.
How FormFree’s Lending Approach Is Reinventing the Credit System
FormFree’s approach to credit may be groundbreaking, but it’s also refreshingly simple. It’s based on the concept that the traditional credit system doesn’t accurately assess a person’s creditworthiness.
FormFree helps consumers share relevant data with lenders to communicate their borrowing power more accurately. This is done using Passport Wallet, a free app that helps borrowers quantify their borrowing power by building a financial profile. This profile takes just a few clicks to build, and it contains much more data than a basic credit score. It includes factors like income, expenses, and recurring payments.
Passport paints a more comprehensive and realistic picture of a borrower’s financial situation and their ability to make loan payments.
When the borrower is ready to submit a loan request, Passport packages and anonymizes the user’s data in a Qualified Borrower Medallion. This Medallion is then presented to lenders on FFX, FormFree’s online marketplace, allowing them to extend loan offers based on a comprehensive view of the borrower’s financial DNA. This removes bias from the lending environment that has long affected disadvantaged and minority borrowers.
“At FormFree, we believe in a financial system that serves everyone, not just a select demographic,” Chandler said. “Passport embodies our commitment to inclusivity and empowerment in financial services, providing individuals with the tools they need to achieve their financial goals.”
A Better Way of Connecting Lenders with Borrowers
The traditional credit system isn’t just detrimental to individuals seeking credit. It also makes it harder for lenders to connect with qualified borrowers. By ignoring key financial information, such as income and expenses, traditional credit scores exclude millions of lendable consumers. This is making it increasingly difficult for lenders to do business.
For example, a young Gen Z content creator, a Millennial freelancer, and a single parent renting their home may be denied credit due to their “unconventional” financial situations despite having a healthy income and a perfect record of paying bills.
This group of lendable and underserved Americans is estimated to number nearly 40 million, representing about 25% of employed individuals.
FormFree connects lenders with these qualified, high-intent borrowers and simplifies the task of assessing their creditworthiness with RIKI.
RIKI (Residual Income Knowledge Index) uses real-time banking data and cash flow analysis to assess an individual’s borrowing power and more accurately reflects a borrower’s Ability to Pay.
Brent Chandler explains RIKI this way:
“A person may have a 110 RIKI, indicating consistent savings month-to-month, correlating to a 750 credit score. However, their actual credit score may be 680. Unfortunately, this individual may be denied entry solely based on a 750 or higher score requirement. This is why we aim to introduce alternative risk indicators.”
By providing lenders with a broader range of data points and credit metrics, RIKI produces a more comprehensive picture of a borrower’s creditworthiness, thereby reducing risk for lenders.
Less risk and more lendable consumers have made FFX a popular platform for lenders. On FFX, lenders are able to connect directly with high-intent borrowers.
FormFree: Democratizing the Credit Process
For far too long, the credit system has been controlled by a select few gatekeepers who reward the most privileged in society and punish hard-working Americans trying to gain financial independence.
This outdated credit scoring system no longer reflects the reality of the modern economic landscape.
It’s gotten so absurd that today, 50% of loan applications are denied, leaving Americans financially frustrated. Many individuals are denied mortgages with monthly payments substantially cheaper than their rent costs, effectively ignoring their ability to pay rent month after month.
This system needs to change.
FormFree’s suite of free financial tools takes the lending power from the institutionalized credit gatekeepers and puts it back into the hands of the people.
With innovative resources like Passport, RIKI, and FFX, FormFree gives consumers the tools they need to understand their financial data and determine their creditworthiness. And, it incentivizes lenders to extend credit in a fair and unbiased way.
By redefining access to credit, FormFree is not just challenging the traditional credit system—it’s changing it for the better.
