Individuals of color are disproportionately prone to report woeful credit.

Individuals of color are disproportionately prone to report woeful credit.

Our study unearthed that households of color are in a disadvantage that is serious it comes down to credit score. The opposite is true for African Americans while the majority of low- and middle-income white households with credit card debt report good or excellent credit. Sixty-five % of white households within our test explain their credit ratings nearly as good or exemplary, higher compared to the 44 per cent of African American households who identify when you look at the good or exemplary groups. In comparison, over 50 % of African American households fall under the number of reasonable and credit that is poor. Among households with personal credit card debt whom understand their credit rating within a variety, simply 15 per cent of white households within our sample have actually credit ratings below 620, in comparison to significantly more than a third of African US households. Many white households (59 percent) report ratings of 700 or above, showing strong credit, while not as much as one quarter of African Us citizens (24 per cent) have the ability to achieve the exact same high credit score status. Our findings are in keeping with past research from the racial gap in credit ratings, including studies done by Federal Reserve Board, the Federal Trade Commission plus the Brookings Institution. 11

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