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I want 40 points and a mule, LOL!
I don't see how they are targeting FICO....
I can't access the article from work, but I'll just say this... as a Hispanic with a relatively "low income", I've had absolutely no problem having and maintaining good credit. Personally, even though there is no designation for my race, I think it'd be quite easy for someone to figure out what I am based on my name and last name alone.
Follow my financial journey: http://www.frugalrican.com
@FrugalRican wrote:I can't access the article from work, but I'll just say this... as a Hispanic with a relatively "low income", I've had absolutely no problem having and maintaining good credit. Personally, even though there is no designation for my race, I think it'd be quite easy for someone to figure out what I am based on my name and last name alone.
Pretty much this. I am african-american but thankfully I was blessed with smart parents who gave me a VERY common name. I have seen it done and the names sometimes tells creditors/employers what race they are before they even speak to them. Now the article that was supposed didn't attack FICO in any way possible and actually defended it
I joke about it but do feel people of lower economic status really don't learn about credit until it's too late. That's not a race thing, though.
May as well get my giggles in now. We won't read too much silliness like this once things get better.
Not everyone can be successful, smart, funny, rich, whatever. It's not how the world is meant to operate. Why can't we just let people fail and die off. What happened to survival of the fittest? My credit sucked because of me. Now it is better because of me. My parents never taught me finance (sadly). Military never taught be the importance of personal finance. School STILL has yet to teach me anything about the importance of proper financial planning. I had to get off my ace, find the resources, and get this stuff squared away.
What happened to personal accountability?
I wish we will one day be able to stop using race as a crutch, and let people be regarded based on their personal merits.
I'm white, but I work in education in a school entirely composed of African American and Hispanic students from a disadvantaged socio-economic background. From what I've learned, financial illiteracy is a serious community problem for these students. Because their families make so little income, they have learned to shun banks because they can't maintain the minimum balances or meet the requirements for free checking. They would constantly overdraw their accounts by accident and have to pay massive fees each time. Instead, they rely on prepaid debit cards and an entire industry exists to prey on them. In particular, Russell Simmons' "Rushcards" exploit them with huge fees for every possible action they can use it for.
Since their parents and grandparents have all dealt with the same issues as the students, they have no role models for good personal finance. They pay cash for everything, because nobody teaches them about handling credit. They end up carrying large amounts of cash or hiding large amounts of cash in their homes and they face the constant threat of someone stealing their money. For protection, they join gangs and then they end up becoming aggressors to steal cash from their peers.
In school, math classes focus on advanced engineering-type math that has very little practical use, because this is what the state tests for. There are no real-world life skills classes, because all education today is focused on passing state-mandated exams, which determine schools' funding. There is no place in school to teach students like mine how to handle credit and checking accounts so they can escape the endless cycle of deprivation and violence.
Fixing the credit of disadvantaged minorities is a difficult task, because it would require changing an entire culture of poverty in the inner-city.
Wow! It always amazes me when someone or something states the word Black or minority. Giving attention to anything dealing with making things equal. Ha! Even if it were true that the scoring system could score based on color, do you all really believe there will be changes made in minority favor in a real way. If you really feel like its unfair that minorities get a second look with regards to credit bias by an government agency. I can reassure you, there are plenty more ways to make up for the bump in score if found to be discriminitory by CRAs by:
1 I found that creditors can use your geographic code i.e. zip code and address to determine if you live in a black or minority community.
2 Self disclosure on an application.
3 Face to face with a loaner or bank.
Im sure there are many more ways to discriminate, so to all who are worried minorities will have an unfair advantage; no worries things are pretty much covered.
My 2 cents
How would the FICO formula even know what ethnicity someone is?
I dont get the logic behind this article. I can understand if they say there is some discrimination on certain applications but any lender gets teh same FICO score from e-oscar.
Again maybe im not getting the whole point here.
@CS800 wrote:Again maybe im not getting the whole point here.
IMHO is just a different spin on the equal outcome vs.. equal opportunity argument that seems so prevalent today.