What really is a credit score?

first_img 13SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Christina Camacho Christina Camacho is the Founder and CEO of Ivy Lender. Christina spent her banking career working with SME businesses as well as Fortune 500 companies at the top Financial Institutions … Web: www.ivylender.com Details A credit score in the United States is a number representing the creditworthiness of a person and the likelihood that person will pay his or her debts. Lenders, such as Credit Unions and credit card companies, rely on credit scores to evaluate the potential risk associated with lending money to consumers.Statistics show that the current credit models are not inclusive.  The current scoring models favor privileged individuals with capital in a different way than the working-class.  Millions of Americans do not have a score at all because of limited credit history. “If you think about the credit-invisible population in this country, their ability to enter the financial mainstream and access affordable credit instead of payday lenders, pawnshops and check-cashing services is tied to what’s in their credit report,” says Michael Turner, the president of the Policy and Economic Research Council. “They’re caught in the credit catch-22: In order to qualify for credit you have to have already had credit.”Companies such as Upstart, are attacking this problem by considering “outside-of-the-box” data points such as: education, area of study and job history to determine lend-worthiness.  By harnessing big data, machine learning and other technological advances FinTechs are getting a more accurate estimation of a consumer’s creditworthiness outside of traditional data points.Lending to credit-invisible individuals represent both opportunity and risk for Credit Unions. While they offer the opportunity to gain customers, they also pose a significant risk if credit is extended without sufficient analysis of their ability to repay debt. Individuals who lack credit scores are at risk, too, because access to credit is increasingly important in the modern economy.“The current credit system is not an accurate representation of how borrow-worthy each individual is.” – David Potter, CEO of CuruCuru, a credit building application, is supporting this mission of eliminating credit rejection by providing tools that empower consumers to be included in the current FICO model.  Unique to Curu, is their platform’s user offering that matches consumers with forwarding thinking lending products. Their application identifies products that their users are pre-approved for based on the data collected through their mobile application.  Their mission is to make these”credit-invisible” individuals “visible.”last_img read more

Company performance at risk from ignoring human rights, say investors

first_img“Benchmarks, civil society and investor pressure is helping to create a ‘race to the top’ in human rights reporting and commitment to transparency,” it said. Macy’s was among the companies criticised in CHRB’s reportCHRB said its conclusions were backed by consultancies, such as Freshfields Bruckhaus Deringer and ERM, who reported increased demand for human rights support in the wake of its pilot benchmark report in 2017.It added that investors were discussing how poor company human rights performance could result in exclusions from specific funds.According to CHRB, 52 companies issued a dedicated human rights report last year, while over 5,000 firms have reported on their public commitments to avoid modern slavery in their supply chain.Steve Waygood, the CHRB’s chairman and chief responsible investment officer at Aviva Investors, said that “we should all be concerned by the lack of engagement from around a quarter of companies, particularly as they are in priority sectors concerning serious human rights impacts”.According to the CHRB, the 28 companies that have shunned engagement had not responded to the investor coalition, the CHRB’s invitations, consultations or communications.They had not taken part in 2018 engagements either, it said.CHRB said its members would push for greater corporate transparency and engagement this year. It also committed to expanding its assessment into the technology sector, with a pilot benchmark planned for 2019.CHRB was founded in 2013. It is backed by a €5trn investor coalition that includes APG Asset Management, Nordea, Robeco and the Church of Sweden, and is supported by the UK, Dutch and Swiss governments.Several major institutional investors operate public ‘blacklists’, including Sweden’s AP7 and the Norwegian Government Pension Fund Global.AP7 has blacklisted 27 companies explicitly due to human rights issues, according to its website, while eight have been banned by Norway with three more under observation. Companies that ignore human rights issues risk restricted access to capital due to reputational damage and regulatory backlash, according to the Corporate Human Rights Benchmark (CHRB). In a new report, the $5trn investor collaboration named 28 companies including Kraft Heinz, Macy’s, Hermes and Prada had not “meaningfully engaged” with investors regarding issues such as modern-day slavery, worker safety and freedom of association.In contrast, it named Tesco, Nestlé, Gap, Freeport-McRohan and Mondelez as companies reviewing and positively evolving their programmes and policies on human rights.CHRB – a collaboration of large investors and other groups, including APG and Nordea – found that apparel, agriculture and mining companies were committed to addressing gaps in human rights management and improve performance.last_img read more

MLB trade rumors: Madison Bumgarner says, ‘I’m the same guy I was in 2014’

first_imgIn fact, the Yankees, one of the teams that has reportedly checked in about acquiring Bumgarner, are rumored to be having internal discussions about Bumgarner’s true value, according to MLB Network’s Jon Heyman. The 29-year-old Bumgarner has heard the rumors he’s not the same pitcher he was a few years ago. But he told The Athletic he feels the same. Related News “I’m the same guy I was in 2014, contrary to popular belief,” Bumgarner said. “I know that gets said a lot, ‘Oh, he’s not the same guy he used to be.’ That’s just wrong. Numbers are what they are right now, but let’s just wait to the end of the season, and we’ll check. Maybe they won’t be there and maybe they will.“All I know is, the last two years, the stuff was a little different rushing back from two injuries. Now? How I feel is the same. My stuff is the same.” Will Yankees land front-line starters like Max Scherzer, Trevor Bauer? ‘We’ll see,’ Brian Cashman says The Giants are widely expected to trade longtime ace Madison Bumgarner this summer, yet one question looms large.Which Bumgarner will the other team get — the seemingly invincible left-hander who carried the Giants to the World Series title in 2014, or the pitcher who has a career-high 4.21 ERA this season?center_img MLB trade rumors: Yankees targeting 4 big names on pitching market The Twins have reportedly shown “strong interest” in Bumgarner, according to USA Today.According to Fox Sports, eight teams are on Bumgarner’s “no-trade” list: the Yankees, Braves, Red Sox, Cubs, Astros, Brewers, Phillies and Cardinals. That doesn’t necessarily mean he does not want to play for those teams, but he would have to approve a trade to one of those destinations.Bumgarner, who will earn $12 million in 2019, is a free agent after this season.last_img read more