The Washington Post, October 16, Credit Scored are Supposed to Be Race-Neutral. That’s Impossible.
While many are told that credit scores are race-neutral, there is actually a large bias which has put Black people at a disadvantage for generations.
Yet another misconception about Blacks is that we are financially irresponsible, as evidenced by disproportionately lower credit scores. But if you trace the root cause of the poor credit histories, you’ll find a pattern of discriminatory practices.
In America, we like to think that everyone has an equal opportunity to succeed, that meritocracy — skills and effort — eliminates bias. You’ve heard the pull-yourself-up-by-your-bootstrap tropes that all come down to this: If you work hard enough and save, you, too, can be financially secure — even rich.
But the legacy of slavery endures, and Blacks must make extraordinary efforts to overcome the discrimination that is often hidden in policies or, in the case of credit scoring, products that purport to be race-neutral.