Credit is a must in just about every facet of American society. In order to buy anything a person needs credit. When applying for a job, credit checks are commonly performed. It seems however more people have bad credit than good credit. In the African American community especially, bad credit or no credit is the norm. Most of the Black people I know have bad credit, including my mother. The idea of credit is biased and racist and needs serious improving.
As stated, many of the people in America have bad credit. People of all races and economic backgrounds have credit issues. In the Black community, however, bad or no credit is widespread. This is because many lenders, who should be helping people establish a positive credit history, abuse their power and significantly damage the persons record. One example is credit card companies that set up at college campuses, giving instant approvals to young people out on their own for the first time with little or no money to spend. Most times these companies neglect to inform the students of the potential dangers associated with frivolous spending. Many people are still paying for mistakes made as a freshman years after graduation. Most are Black people. White students have resources available to them that most black student do not. A white student may have Mom and Dad to send them money or pay off delinquent bills. For most black students this is not an option. These situations lead to many people starting off with a blemish on their credit report, which makes it harder for them down the line.
Another way lenders abuse their power is through a practice Rep. Maxine Waters refers to as predatory lending. This is a practice in which financial institutions in the U.S. use high fees, exorbitant costs, and other unscrupulous lending practices to strip the equity from the homes of targeted groups - often the elderly and people of color in low-income communities. Such activities destroy the very areas that are working so hard to build. Rep. Waters is heading a committee to enact legislation to put an end to predatory lending. She has stated, however, that it would currently be very difficult with a Republican White House. Racism definitely exists, and it starts at the top of our government.
A personal story about credit should drive home my point. Lenders target those who they feel may be less informed about credit and get over on them. In my office, a sweet, elderly white lady named Mary Jo Eppinger was in need of a car. She went many places but couldn't get anyone to help her out. She stated she had no money to put down, as well as having over twenty-five thousand dollars in credit card debts. Mary Jo was finally able to get a car, but at an inflated interest rate that make the payments outrageous. I was looking for a vehicle as well, and Mary Jo told me where she got her car, so I went there, thinking if they help her out I know they can help me. One problem, I have no credit, which is worse than having bad credit. Bigger problem: Anytime I have attempted to get credit, I've been rejected. On every rejection letter it says I don't have enough credit to qualify. How can I establish credit if I can even get approved to try to establish credit? This is why the system needs serious revisions.
In the new millennium, credit is becoming as important as the computer. At McDonald's they have credit card machines. The Internet is also revolutionizing the way we shop. Everything imaginable is available on the web, sometimes lower than retail prices. But everything you can buy online has to be bought with a credit card. To buy a house, car, or anything, a person needs a positive credit history. Someway the system of obtaining and maintaining credit must be made level for all of us. Someway the abusive, predatory lenders must be done away with. There must to be way for all people are able to live the American dream and own things without being swindled or taken advantage of.
