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Home » Credit Discrimination – What To Do To Protect Yourself – By Mark R Graham

Credit Discrimination – What To Do To Protect Yourself – By Mark R Graham

Credit Discrimination – What To Do To Protect Yourself - By Mark R Graham

Did you know that discrimination in credit is a real problem? That’s right – it can take many forms, such as not being able to get approved for credit based on race or gender, experiencing unexpected rate increases because of your financial circumstances, and even having difficulty getting basic banking services. Credit discrimination needs to be recognized and addressed. Fortunately, there are steps, as per Mark R Graham, you can take to protect yourself from these insidious practices – read on to find out what those steps are!

Mark R Graham On Credit Discrimination – What To Do To Protect Yourself

Credit discrimination, also known as credit redlining, is a practice in which lenders deny access to credit on the basis of age, race, gender, marital status, or other arbitrary criteria. According to Mark R Graham, this type of discrimination can make it difficult for those who are affected to secure loans and other lines of credit that they may need.

Fortunately, there are steps you can take to protect yourself from this type of discrimination. The first step is to be aware of your rights under the Equal Credit Opportunity Act (ECOA). This act prohibits creditors from discriminating against applicants based on their religion, national origin, sex, or marital status. It also protects against ageism and racial bias in the granting of credit requests. Knowing your rights and understanding how these laws protect you can help you to take a stand if your rights are violated.

Another step consumers can take to protect against credit discrimination is to build up their credit scores. An excellent credit score will not only help you get access to better loan terms but also shows that you have been a responsible borrower and that you have made timely payments in the past. To improve or maintain a good credit score, pay bills on time, keep balances low, and manage debt responsibly. Additionally, check your credit report regularly for accuracy and any suspicious activity that may indicate fraud.

Finally, familiarize yourself with state and federal laws related to fair lending practices, says Mark R Graham. There are numerous resources available online that provide information about federal and state regulations regarding lending practices. Keeping up with current laws and regulations is a great way to ensure that you are not the victim of discrimination when it comes to credit decisions.

Unfortunately, despite protections afforded by federal and state laws, an estimated 26 million people have experienced credit discrimination in recent years. A 2018 survey by the Consumer Financial Protection Bureau revealed that minorities were nearly twice as likely to be denied loans than non-minorities. Additionally, according to the National Community Reinvestment Coalition, minority borrowers often pay much higher interest rates than their white counterparts for the same loan products. One real-life example of this occurred in 2017 when Wells Fargo settled charges of discriminatory lending practices after charging more than 30,000 African American and Hispanic borrowers higher fees and interest rates than other borrowers.

Mark R Graham’s Concluding Thoughts

According to Mark R Graham, by learning about your rights, maintaining a good credit score, and staying up-to-date on fair lending practices, you can protect yourself from credit discrimination. With the right knowledge and resources, you can ensure that you are being offered the best borrowing terms available to you.