| Rating | Percentage |
| Worthless | 42.86% |
| Helpful | 28.57% |
| I have tears of joy | 14.29% |
| Better than War and Peace | 14.29% |
| Reader Comments |
| The Report "Financial Empowerment..." confirms what I believed to be true, regarding the motivation of credit scores. This credit system not only denies access to financial services, it hinders ones ability to obtain employement in order to correct their financial situations. It would be interesting to study current credit card default rates, current credit scores, and how credit scores will effect the millions of unemployed job searchers. - |
| They are also using credit score as bias to keep people from getting jobs. - |
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| This is the most worthless study I've ever read.First the very language you are using to describe the situation reveals your bias.Banks and other financial institutions are not"denying" people access to credit or wealth creation.All persons credit scores are "self created" by there behaviors and thus completely within there control.The very idea that because someone has a low credit score will be trapped and not have access to wealth creation is false.Wealth creation is a combination of hard work,living below your means and delayed gratification.Why not let that be the message sent to the minority communitys? - |
| WOW...so some genius sat down and said, hmm, blacks and other minorities are denied credit when there credit score sucks, this is an outrage! Did the folks that did this study eat paint chips when they were kids? Of course minorities are denied credit based on low credit scores, so are whites! That is what the credit score is there for, it is a prediction of the likelihood of someone repaying a debt, the algorithm doesn't know if the applicant is black, brown, red, yellow, white, green, or flourescent purple! So what is the NBCSL going to recommend, that minorities are to allowed lower credit standards than whites when applying for credit cards, signature loans, car loans, or mortgages? Let's look at what happens if we do that with a mortgage. We require a white man to have a score of 720 to qualify for a particular mortgage, he has the score, gets the mortgage. With his 720 score, their is approximately a 99.69% chance that he'll pay the mortgage as agreed. 30 years down the road, he owns the house free and clear, the bank made money, the man owns a house, hey, it's the american dream. Now, a black man applies, he doesn't have a 720, he has a 580 score. Meaning he is more than 40 times MORE likely to not pay as agreed!!! but, because credit scores are being used to deny credit to African-Americans, we'll approve him anyway. A short time later, he makes a payment after the 15 day grace period, and gets a 5% late payment fee. Because he has to pay extra, he doesn't have the funds to make the payment the next month on time, next thing you know he's 30 days behind, then 60, then 90, then 120, and receives a notice of default. Then a foreclosure takes place. The home sits their vacant for a while..the yard gets unkempt, and maybe some jerk breaks out a window or two. Then the home gets sold at an auction. With the minor damage, and poor curb appeal, it goes for about half what it was worth. Now, the bank has lost money (meaning they'll raise rates on future mortgages to compensate!). The values of the neighboring homes have gone down (because an appraiser can't ignore this home when looking at comperables, just because it sold so cheaply). And everyone in the neighborhood suffers, as does everyone else who tries to get a mortgage, REGARDLESS OF RACE!!!! But, hey, even though the past president of NBCSL (Mississippi state rep Mary H. Coleman) is quoted as saying, "...credit scores -- more so than simply race or income or other variables -- are the key factor." we better do something about this, because those poor minorities that don't pay their credit cards on time are being adversely affected by their poor credit, and we can't have that!!! - |
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