THE PROBLEM
According to a recent survey of 5,000 U.S adults by credit sesame, about 54% of black Americans report having no or a poor to fair credit score which is considered to be any score below 640. Many African Americans and Hispanics say they were misinformed or tricked with their first encounter with credit. The problem is many of us were simply not taught much about credit, so we had to learn as we went. What if I told you , you don't have to do that anymore. We can educate ourselves right now so we can make better decisions that positively impact our futures.
The same survey as mentioned above shows that over 1/3 of African Americans(34%) and Hispanic Americans (32%) are fearful or uncertain about their future because of their credit score compared to 27% of white Americans and 20% of Asians. This data was just collected in 2020. However, this goes back to our ancestors with us being deprived of education and not being given the same rights as others in this country. The unemployment rates are significantly higher among African Americans and underemployment rates compared to white Americans.
Homeownership rates are affected. For years rental payments weren't even considered in regard to building credit scores. Currently, there are many programs that can be used to report rental payments as a way to help boost scores. Although homeownership rates are 30% lower than white homeownership rates, we have the power to change that and we will.
In 2011 Bank of America paid 335 million in a lawsuit related to black and Hispanic borrowers paying more in fees and interest than white borrowers with similar profiles. So it seems we will be judged by the color of our skin regardless, but we can still change this narrative and the perspective. Our fight is never over.
It is my intention over the next few posts to provide you with insight and background history in the way credit came about and how it affects us, I will provide solutions to consider and actionable steps to improve your scores. I will give you action plans on how to start a saving plan on any income and I will get around to discussing all things business related. How to start your business, business credit, everything from the logo, and branding to executing sales tactics and marketing strategies.
Follow us on ig & Tiktok for more info on how to start a business, build credit and save money @blackambitionent
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