September 8th 2023.
Monique White, the Head of Community at Self Financial, a credit-building platform, has noticed the financial disadvantages that Black Americans are facing. With her 10 years of experience in the financial industry, she can see a rising trend of credit card delinquencies that could be more harmful for minority communities.
The studies show that 46% of Black adults have been denied in their application for credit, compared to only 22% of white adults. This comes at a time when Americans are struggling to make monthly credit card payments. According to the Federal Reserve Bank of New York, the total credit card debt soared to $1.03 trillion in the second quarter of 2023.
White has warned of the serious repercussions of missing credit card payments. She noted that it can hurt your ability to build wealth and achieve financial goals. It can also put you at a disadvantage when trying to apply for a loan or a mortgage. Late payments can stay on your credit report up to seven years, making it hard to recover your credit score.
To counter this, White recommends taking some steps to mitigate the impact of late payments and work toward fixing your credit score. Setting up automatic payments, utilizing bills to build credit, reviewing your credit report, and creating a budget are all great strategies. Taking the time to make necessary changes to your finances can help you save money and reach your goals in the long run.
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