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I was in the car business for 20 years. Honestly, 8 of 10 black people had poor credit. Many, many whites also have poor credit, but the % in the black community is much higher.
Most banks make loans based upon a mix of factors including credit scores and assets. African-Americans historically even when they have "money" often come up short in the asset department (real estate, stocks, bonds, savings, etc...), that is where problems start.
For various reasons some persons are hesitant if not out right unwilling to sign over assets and collateral as a personal guarantee against a loan. When you do that then banks sort of "so it's like that?" and many will tell you to look elsewhere.
Lack of other assets besides their home is one reason why AAs got hit so hard during the past credit/fiscal crisis. For many the only thing they owned of value was their home, and often they had little to nil equity. When the housing market collapsed they were left with mortgages far in excess of what the property was then worth. While the effects of that crisis hit everyone, those with other assets (stocks, bond, IRAs, etc...) were able to ride things out and or move stuff around in order to stave off the worse.
Why do 70% of Black Athletes who make more then 2 million per year playing sports go bankrupt within five years after their careers are over? And almost 100% of white athletes grow their wealth even more then when they were a pro-athlete.
Credit scores when calculated know no race, color, age etc, etc. It's based on an automatic computed system. Credit scores trump all when lenders calculate lending potential. Blacks who are rich, poor, or middle class basically do not have higher credit scores.
Some theories on this? So as not to make this a race issue, well start with the far end of the spectrum. Asians have been found to be those who plan and think ahead the most for all races of people. Their life decisions are based on, "where will I be and what will I need tomorrow." Whites fall behind them, but only by a little in this category. And blacks, tend to think and plan more in the immediate moment. I am not implying one is, or might be better then the other, there is a place for all reasoning in the world. But this is how scientific psychological studies have revealed we think.
Credit systems setup in the USA, are built around and for people who plan for a rainy day and for their future.
You should really watch that ESPN 30 for 30 documentary "Broke", that 100 percent number you're throwing around for white athletes? yeah, not so much...
In recent years, Latino and African American consumers with good credit scores of 660* and higher have too often ended up with high interest rate mortgages, mortgages which are supposed to go to risky borrowers. These higher-rate mortgages increased the likelihood of foreclosure among Latinos and blacks. The higher foreclosure rates of these groups help explain why Latinos and blacks have seen such dramatic declines in wealth.
Why do 70% of Black Athletes who make more then 2 million per year playing sports go bankrupt within five years after their careers are over? And almost 100% of white athletes grow their wealth even more then when they were a pro-athlete.
Credit scores when calculated know no race, color, age etc, etc. It's based on an automatic computed system. Credit scores trump all when lenders calculate lending potential. Blacks who are rich, poor, or middle class basically do not have higher credit scores.
Some theories on this? So as not to make this a race issue, well start with the far end of the spectrum. Asians have been found to be those who plan and think ahead the most for all races of people. Their life decisions are based on, "where will I be and what will I need tomorrow." Whites fall behind them, but only by a little in this category. And blacks, tend to think and plan more in the immediate moment. I am not implying one is, or might be better then the other, there is a place for all reasoning in the world. But this is how scientific psychological studies have revealed we think.
Credit systems setup in the USA, are built around and for people who plan for a rainy day and for their future.
Many chalk it up to various sorts of "discrimination" but it comes down to having an understand of wealth building and growing assets. Some AAs such as P. Diddy, Magic Johnson, Puff Daddy and others "got" that message. However by and large the greater AA population has not. Most equate having or earning large sums of money as "wealth" when anyone with half a mind on such matters will tell you it is not.
Your average AA rap or basketball "star" from the projects comes out of the middle to lower classes. The concept of wealth building is totally alien, however the idea of money and what it can purchase is not. It is an expansion of living payday to payday. You work (or whatever) get money, spend, lather rinse and repeat. Young Gary Coleman of "Different Strokes" fame had most of his money from child acting pissed away by his parents. Dionne Warwick is poor and literally bankrupt, Tony Braxton has been in and out of bankruptcy court so often she is a poster child for the reforms that were passed several years ago.
Now contrast this with say a Lance Bass, the young gay former member of the pop band N'sync whose financial affairs were taken into hand and is now quite wealthy from his investments. Same with the young "Harry Potter" actor Daniel Radcliffe whose earnings were plowed into investments including NYC real estate.
In the 1980's sitcom "The Cosby Show" Claire Huxtable summed things up; when one of the daughters complained that her friends thought she was snobby because they were "rich" Dr. Huxtable counters "he and his wife" are wealthy because they earn the money. Mrs. Huxtable corrects her husband with "we are not wealthy, wealth is when your money works for *you*, and we work very hard for our money...". Now Mrs. Huxtable was an attorney, her husband a physician so it is a safe bet that they earned decent compensation. However Claire Huxtable understood that alone is not enough to be wealthy.
These are of course overly general statements. There are plenty of AAs that have gone from poverty to great wealth and managed to remain. However it is telling that so many go from poverty, wealth and back into poverty. I mean when you hear story after story of some poor AA winning tens of millions in the lottery only to be bankrupt in < ten years afterwards, you have to wonder.
Democrats are telling us all the time that blacks can't even get a voter ID, so one has to wonder, did they have a photo ID? or was it too hard for them to get?
Not one single time, when I've filled out a loan application, (in the past for a car, for example), has any bank or institution EVER asked me for my race.
Total thread fail.
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