This report examines an important aspect of economic racial disparity -- disparity in credit scores. The relationship between credit scores and minority presence illustrates a clear racial disparity in credit in Illinois. Though many related factors help to explain some variability in credit scores, even when controlling for them, racial differences in credit persist.
Having a credit score is important for gaining access to things like education, better jobs, homeownership -- the very things that feed financial and social opportunity. While credit disparities exist in large measure due to the same historic policies that have limited access to broader financial opportunities for minorities, credit scores are particularly important to consider because they also impact individuals' future financial opportunities.
In effect, credit scores can create a trap, one that minorities are more likely to fall into, thereby feeding the continued growth of income and wealth disparities.
Social IMPACT Research Center
Copyright 2014 Social IMPACT Research Center.
IssueLab's Embeddable Widget
Use this super simple form to customize and generate the code you need to display this content in your own environment - no programming required. The feed will inherit more specific styles, like font face and font color, from your website.
Your widget code
Suggest a Report
Please use the form below to provide us with your recommendation, and we'll check it out. Include your name and email address along with your suggestion just in case we need to get in touch. Thank you for contacting us.