Racial justice cannot be realized without economic justice.
Let’s just say it outright: institutional and structural racism has created an enormous wealth gap in our state and country. As a result, debt of all kinds disproportionately impacts people of color, which in turn creates an unfair disadvantage when it comes to building and maintaining credit. If we accept those facts, that means that the credit scoring system – one of the many tools used to determine who can build wealth by purchasing things like a home or car – is, at best, biased against people of color.
As if that’s not bad enough, credit scores also affect how much people pay for car, homeowner’s, renter’s, and life insurance premiums. When insurance companies use credit scores for the basis of calculating insurance rates, people of color and people with low incomes end up paying a higher price. That is not only wrong and unfair, but it also has nothing to do with how safe a person is as a driver or how well they take care of their home. We need our state representatives to pass equitable policies that protect communities of color and low-income households from paying more than their share.
Tell your state senator to support SB 5010 without repealing protections for people of color from the discriminatory practice of using credit scores to calculate insurance premiums.
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