banks are going to be assessing you for whether you’re likely to pay back the loans they provide
Actually, this is not quite accurate. It’s more accurately a score that summarizes how much the banks would want to lend you money. It is designed to make sure you are profitable not just in your ability to simply pay back a loan, but also to make them money.
And, statistically, it’s also systemically racist.
It was systematically racist before credit scores as well. Before credit scores, whether you got a loan was dependent on the bank manager ‘liking you’, and by that I mean if you stepped into that room with skin any darker than the sheets the bank manager wore at the weekend, you weren’t getting a loan.
Actually, this is not quite accurate. It’s more accurately a score that summarizes how much the banks would want to lend you money. It is designed to make sure you are profitable not just in your ability to simply pay back a loan, but also to make them money.
And, statistically, it’s also systemically racist.
It was systematically racist before credit scores as well. Before credit scores, whether you got a loan was dependent on the bank manager ‘liking you’, and by that I mean if you stepped into that room with skin any darker than the sheets the bank manager wore at the weekend, you weren’t getting a loan.