5/19/2023 0 Comments Ce ce bellIn contrast, only 37% of white Americans reported the same sub-optimal scoring in a 2021 survey. Why? Our broken credit scoring system excludes and punishes people of color.Ĭredit scores range from 300 (poor) to 850 (excellent), with 54% of Black consumers reporting having a poor or fair credit score of 620 points or less. Sixty years after federal law barred lenders from denying credit based on a person’s race or where they live, America’s homeownership gap remains virtually untouched. Instead of removing race from lending, credit scores have become a direct proxy for it. However, the algorithms (and the underlying data that feed them) have been corrupted by generations of systemic oppression and financial exclusion of people of color. Your credit score is the shadow you never asked for and can’t outrun. Today, it’s the financial fingerprint used by lenders to assess the risk of default, by employers to evaluate the reliability of job applicants, by landlords to screen tenants, and by insurers and utilities to set rates. This opaque, three-digit scale was conceived as a race-neutral, data-driven measurement of a person’s creditworthiness.
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