What exactly is Financial Life?
We are a Financial Technology ("FinTech") company focused on improving the financial health and wellness of the average American family. Through our Financial Health Assessment, we enable people to understand where they need help and offer personalized recommendations for improvement. We also offer a detailed look at credit scores and reports, analyze spending habits, and offer a unique high yield savings account.
What's a Financial Health Assessment?
Our Financial Health Assessment is comprised of four categories: Spend, Save, Borrow, and Plan. We use information from your linked accounts, as well as simple Q&A when data isn't available, to give you a detailed score. We also provide actionable feedback and tips that lets you know how to improve your score.
I've heard that credit inquiries can hurt your score - will this process ding my credit score?
The short answer: no.
The long answer: there are different types of inquiries into your credit - soft inquiries and hard inquiries. A hard inquiry occurs when you have actually applied for credit somewhere - you're opening a new credit card, taking out an auto loan, getting a mortgage, etc. - and too many of them in a short amount of time can negatively affect your score. A soft inquiry is when your report is viewed but you are not actually applying for credit anywhere, and soft inquiries have no affect on your score. The credit score and report inquiries that occur as part of the Financial Life dashboard are all soft inquiries.
What happens if something doesn't look right on my credit report?
We'll help you make it right! We will work with you and the credit reporting agency to get any errors fixed and get you on your way!
How do the high yield savings accounts work?
Financial Life's high yield savings accounts help consumers save money with incredibly competitive rates. We are putting consumers behind the wheel of their savings, giving people the ability to earn by far and away the highest interest rate in the country while also keeping everything FDIC-insured.
Does that mean that Financial Life is a bank?
Good question! We are not a bank. Financial Life partners with regional banks to hold your deposits in FDIC-insured accounts.
Why would a bank work with Financial Life?
Banks constantly have a need to grow deposits in order to fund different lending (and other) initiatives, and this is true across the entire banking universe. As banks have seen their production grow, they have needed to grow deposits as well. Unfortunately, organic deposit growth doesn't always keep up with loan growth, and banks fill deposits through other means, one of which is buying deposits from other banks. This is expensive for the banks and creates some serious NIM compression, so any opportunity to replace wholesale deposits with core deposits is very much welcomed.
What? Less lingo, please...
Banks need to grow deposits and working with Financial Life gives them the opportunity to do that without taking on the cost of additional people or branches. Working with Financial Life also gives them the ability to replace super-expensive deposits.
Who can join Financial Life?
Any US citizen or US resident that is at least 18 years old
Still have a couple of stones left unturned? Please reach out to us!