CHARLOTTE, N.C. — This Black History Month, WCNC Charlotte is highlighting the issues impacting Black Americans not only throughout history, but continuing today. One of those issues is credit.
Investopedia broke down some studies about average credit scores, and the research shows notable disparities among different racial and ethnic groups.
Investopedia notes credit scores do not factor in age, race, income, or where you live, but the report goes on to say the other factors are used to calculate credit scores can disproportionately affect certain racial groups.
Two examples of such factors are home ownership and student loan debt.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
On homes, credit scores generally favor mortgage holders over renters. On debt, researchers found "Black and African American college grads owe an average of $25,000 more in student loan debt than White college graduates," according to the Education Data Initiative.
The report also notes white and Asian populations in the U.S. have the highest average credit scores, followed by Hispanic Americans, and then Black Americans.
According to FICO and a payment company called Shift, the average credit score across all Americans was 703. Asian Americans held the highest overall, with an average of 745.
The average for white Americans stood at 734, and the Hispanic population had an average of 701. The average for Black Americans was 677.
While this particular set of data didn't include numbers on the Native American community, a study of 2021 data by the Urban League found similar results. That report showed average credit scores in the Native American community fell even lower in the 600s.
Contact Kia Murray at kmurray@wcnc.com and follow her on Facebook, X and Instagram.
WCNC Charlotte's Where's The Money series is all about leveling the playing field in the Carolinas by helping others and breaking down barriers. WCNC Charlotte doesn't want our viewers to be taken advantage of, so we’re here to help. Watch previous stories where we ask the question “Where’s the Money” in the YouTube playlist below and subscribe to get updated when new videos are uploaded.