For decades, one number dominated personal finance.
The wrong one.
Credit score measures how good you are at getting into debt. We asked a different question: How much room do you have between your life and the edge? That's the number that actually matters. So we built it.
The credit score trap — and why we don't fixate on it
A high credit score tells a bank one thing: "This person pays interest. Reliably." It was designed by lenders. For lenders. It doesn't measure your wealth, your safety net, or how much freedom you have. It measures your ability to carry debt. We're not optimizing for that.
We're not saying to ignore your credit score—when you need a mortgage or a loan, it matters. But for day-to-day money skills and long-term wealth, margin wins. Credit score = chains (debt). Credit Margin Score = freedom.
"Wealth is not about having a lot of money; it's about having a lot of options."
A different question
We built one number for what matters. Not how much you borrow. How much room you have when life surprises you. That's margin. That's freedom.
Credit score = debt. Credit Margin Score = the room you've got.
Two numbers. Two worlds.
Credit score
Designed for them.
- • Rewards borrowing
- • Rewards carrying debt
- • Rewards paying interest
- • Their future. Their metric.
Credit Margin Score
Designed for you.
- • Rewards saving
- • Rewards a safety net
- • Rewards no debt
- • Your future. One number.
How we built it
No black box. A base of 400. Five pillars. You can see exactly how your number is made—same math as the calculator.
The gap between income and expenses (your margin). Max at 40% savings rate. The fuel for everything else.
Max at a 40% savings margin (income minus expenses, divided by income).
Months of expenses in cash (emergency fund). Max at 6 months. Your safety net so life doesn't push you into debt.
Max at 6 months of expenses in emergency savings.
Sinking funds for life upgrades—vacations, car, wedding. Max at 6 months of expenses. Freedom to spend without guilt.
Max at 6 months of expenses in sinking funds (lifestyle margin).
Long-term investments vs. annual expenses. The more you have invested, the more points. Money working for you over time.
Points scale with long-term investments as a multiple of your annual expenses.
Personal debt and mortgage reduce your score. Every dollar of debt is margin you don't control.
Personal debt: −20 pts per month of income in debt (uncapped). Mortgage: −2 pts per month of income in mortgage (max −100 pts).
One more thing
See your number.
Enter your finances. One score. What actually matters.
Calculate my Credit Margin ScoreRelated research
The ideas in this guide are backed by academic and policy research. We organize fundamental studies by Margin Score pillar on our Research page.
View research for these pillars →