Like many Americans, Blacks have been scarred by the implosion of the subprime lending market. They “disproportionately held subprime mortgages during the housing boom and are facing foreclosure in outsize numbers,” reports The Washington Post.
What’s at risk: lowered credit scores, which are based on a healthy financial history and paying bills on time, can have a deleterious effect on buying a car; paying for college for themselves or their children; and buying a home.
Here’s a sobering outlook:
The private companies that calculate credit scores say they do not consider race in their formulas. Lenders also say it is not a factor when deciding who qualifies for a loan; federal laws prohibit the practice. Still, studies have shown a persistent gap between the credit scores of white and black Americans, and many worry that it is only getting wider.
To read more about financial issues in the Black community, click here.
BET National News - Keep up to date with breaking news stories from around the nation, including headlines from the hip hop and entertainment world. Click here to subscribe to our newsletter.
(Photo: Carlos Barria / Reuters)