Risk-Based Pricing 101: How Trovy Rewards Responsible Borrowers

Risk-Based Pricing 101: How Trovy Rewards Responsible Borrowers

When you think about building wealth, your home often comes to mind, but probably as something you tap into someday, or when you sell. What if you could put your home’s equity to work today, with less risk and more control than a margin loan?

Equity, your most underrated asset

If you’re a homeowner, odds are that over time, you’ve built up some equity. Nationally, homeowners have over $13 trillion in home equity just sitting there.³ That’s capital you already own.

Traditionally, accessing that value meant a cash‑out refinance, a home equity loan, or a home equity line of credit (HELOC). Margin loans? They might seem appealing for investing in stocks, but they’re short‑term, risky, and subject to margin calls if your collateral dips.

Uniform‑rate vs. risk‑based pricing

It feels unfair that retail credit cards can hit you with 30% APR, even with good credit. That’s because traditional cards often price for worst‑case default scenarios, lumping everyone in the highest risk bucket.

By contrast, Trovy offers risk‑based pricing: we tier rates based on things like credit score (FICO), loan‑to‑value (CLTV), and debt‑to‑income (DTI) ratio. A homeowner carrying credit card debt at a 25% APR could swap that high-interest balance for a HELOC Card—potentially cutting their interest rate by two-thirds.

That’s real savings—no penalty pricing just for being responsible.

What goes into your Trovy rate?

1. Property value & equity %: More equity = lower risk = better rate.

2. Income stability: Evaluate your ability to repay.

3. Credit depth: A track record of responsible borrowing pays off.

4. DTI ratio: More income flexibility = lower probability of default.

It’s simple math: less risk = better pricing. With Trovy, responsible borrowers get rewarded, no mystery markup.

Final word

Uniform‑rate credit cards might treat everyone like a worst‑case scenario. Trovy disagrees. We reward good financial habits and home equity with transparent, risk‑based pricing that cuts your cost of financing and puts equity to work on your terms.

Your home equity, right in your wallet.