YOUR CREDIT SCORE DETERMINES WHETHER DOORS WILL OPEN OR CLOSE TO EVERYTHING IN YOUR LIFE. CREDIT: PIGGYBANK/UNSPLASH
by ReShonda Tate
Houston Defender
Your credit score isn’t just a number—it’s a powerful key that can open doors to homeownership, car loans, business opportunities and financial stability.
But for Black consumers, this number has even higher stakes. Thanks to historic and ongoing systemic barriers, building and protecting credit isn’t just about personal responsibility—it’s about fighting for access and equity in a system that hasn’t always played fair.
Let’s break it down.
Why your credit score matters (and How a Few Points Can Cost You Thousands)
Credit scores range from 300 to 850. Generally, a score above 670 is considered “good,” and a score above 740 is considered “very good.” But even small differences in your score can have a huge real-life impact:
Interest Rates on Loans: A 620 score might get you a car loan at 15 percent, while a 750 score could get you 6 percent. On a $25,000 car over five years, that difference could cost you over $6,000 more in interest.
Insurance Premiums: Many insurance companies check credit scores to set rates. A lower score can mean hundreds more each year in auto or home insurance costs.
Job Prospects: Some employers (especially in financial industries) pull credit reports when making hiring decisions. A poor credit history can close the door on job opportunities, even if you’re qualified.
THERE ARE ACTIONABLE WAYS TO FIX AND MAINTAIN YOUR CREDIT: CREDIT: UNSPLASH
The Systemic Barriers Black Consumers Face
The racial wealth gap, redlining and historic discrimination have left many Black households with fewer resources and less access to fair credit. Predatory lending, higher loan denial rates and a lack of inherited wealth all mean Black families are often starting behind in the credit game.
But here’s the truth: We can’t fix a rigged system by ignoring it—only by mastering it.
Three Actionable Ways to Fix and Build Your Credit
- Pay On Time, Every Time
Payment history makes up 35 percent of your credit score. Even small bills like utilities or credit cards count. Setting up automatic payments or calendar reminders can help you avoid costly late fees and hits to your score.
- Lower Your Credit Utilization
Your utilization is the percentage of available credit you’re using. Ideally, keep it below 30 percent. If your card limit is $1,000, aim to carry no more than a $300 balance. Paying down existing balances or asking for a credit limit increase (without increasing spending!) can quickly improve this number.
- Check Your Credit Report for Errors
One in five credit reports has an error. Request a free report at AnnualCreditReport.com, review it carefully and dispute mistakes. Fixing a wrong late payment or closed account can instantly boost your score.
Breaking the Cycle, Building the Future
Strong credit gives Black families more than just better rates—it provides financial options, economic power and the ability to invest in future generations.
Danielle Joseph, a Houston-based financial coach, puts it this way:
“We deserve access to the tools that build wealth, just like anyone else. Strengthening your credit isn’t just about you—it’s about building up our entire community.”
By understanding how credit works, fixing what’s broken and resisting predatory practices, Black consumers can regain control of their financial destinies.
Next Steps
- Start today:
- Review your credit report
- Make a realistic plan to tackle debt
- Educate yourself and your family on how credit works
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