"While I've certainly seen exploitative lending practices-I've been a financial writer for 15 years, after all-it's equally clear that credit is necessary for ordinary people to get ahead. Without access to credit, things like home ownership would never be possible for anyone who wasn't already rich. Of course, my friend's point also stands. Lending can often be exploitative, leading to cycles of debt and entrenched poverty."
"Credit reporting got its start in the 19th century when retailers would share financial information with each other about their customers. If you've ever seen small retailers post photos of customers who are not allowed to pay by check, you can understand how this kind of sharing of information could be a helpful tool for protecting a narrow profit margin."
Credit access enables major economic opportunities such as homeownership for people without inherited wealth. Credit reporting originated in the 19th century as retailers shared customer financial information to protect margins. Early credit reporting included prejudicial information about perceived lifestyles and public conduct, causing denials of financial opportunities based on sexual orientation, alcohol use, or other behaviors. Credit bureaus historically were not required to disclose confidential information gathered about individuals. Lending can be exploitative and create cycles of debt and entrenched poverty. Since credit scoring is nearly mandatory, people must understand risks and benefits and minimize harm.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]