Sunday, July 01, 2007

Another dubious distinction

The Milwaukee-Waukesha-West Allis metro average credit score for residents of low-income areas ties for the lowest among the 50 largest cities in the United States, according to The Brookings Institution.

The average Milwaukee score of 556 was more than 100 points below the national average score of 662.

"Credit scores are used by lenders to determine if a borrower qualifies for a loan and, if so, the price that they should be charged for that loan," according to the Brookings report, "Borrowing to Get Ahead, and Behind: The Credit Boom and Bust in Lower-Income Markets."

The poorer the score, the higher the cost of credit.

"In this way, credit scores directly affect the access borrowers have to credit-backed assets like houses, educations, and loans, along with durable assets, like cars and appliances," the report said.

There ya go. If you are poor in Milwaukee, you pay more for credit, or maybe you don't use credit, so you don't get a student loan and don't get that education, so you stay poor in Milwaukee.

Wonderful.

3 comments:

ΕΡΜΕΣ said...

So is that saying that we basically have the poorest of the poor? That would be interesting considering that Waukesha is also home to some of the richest of the rich (Waukesha's median household income is among the highest in the nation).

Anonymous said...

wow
just got my 557 score today!

Anonymous said...

how will we decide what goes on our license plates?

worst place to vote while black?

second highest teen pregnancy rate?

chlamydia capital of the US ?

get poor , stay poor?