Survey suggests Americans from underserved
communities lack equal access to financial education, hindering
their ability to secure credit. This lack of financial literacy can
significantly impact their daily lives, from renting an apartment
to qualifying for a credit card.
SAN
FRANCISCO, July 18, 2024 /PRNewswire/ -- Financial
wellness company Credit Sesame, the first platform to provide
consumers free and ongoing access to their full credit
information, today published the results of a new survey that
took a deeper dive into the unequal digital wallets of America's
underrepresented communities, exposing the gaps in financial
education, literacy, and credit opportunities.
The results show that financial education is the not-so-secret
weapon to gaining good credit; 85% of those who say they received
some personal finance knowledge in school have good or better
credit scores, compared to 72% of those who did not. In contrast,
65% of marginalized non-white participants confirmed they never
received financial education as students compared to 41% of white
Americans.
The survey also revealed people who learned personal finance
education in school are twice as likely (nearly 60%) to reach a
high-income household (over $75,000)
versus those who did not receive money management skills while in
school (almost 33%).
When it came to gaining personal finance knowledge at home, the
survey found a racial gap in parental involvement in financial
education. African American (27.4%), Asian (21.9%), and Hispanic
(30.1%) respondents reported significantly lower rates of receiving
financial guidance at home compared to white respondents
(49.8%).
Additional select findings from the survey include:
- Nearly 1 in 3 in underrepresented communities believe financial
institutions are unfair in setting interest rates
- 72% of white Americans surveyed feel marginalized communities
face additional challenges in accessing affordable credit
- 68% of Black Americans surveyed believe marginalized
communities face additional financial barriers compared to
non-marginalized communities.
- People with bad credit (below 670) are more likely to be
rejected for apartments (20.5%) than those with good credit
(12.9%).
- Having bad credit can make it much harder to get approved for
loans or credit cards. For example, people with bad credit are
twice as likely to be rejected for a credit card (62% vs. 31%) and
over twice as likely to be rejected for a loan (51% vs. 23%).
"Throughout this survey, one theme became abundantly clear -
low credit scores hold people back and create challenges for
everyday Americans," said Adrian
Nazari, Founder and Chief Executive Officer of Credit
Sesame. "People without financial education are more likely
to have low credit, making it harder for them to rent apartments or
get loans and credit cards. This isn't intentional bias, but it
creates an unfair situation. The public education system is not
equipping everyone with the tools to succeed financially. At Credit
Sesame, we have made it our mission to educate everyone that
they have the power and tools to raise their credit
score."
To view the full press release, please visit Credit
Sesame HERE.
Survey Methodology:
Credit Sesame commissioned this survey with the research company,
SurveyMonkey.com to discover what financial inequities exist among
marginalized communities. The data was collected between
May 15th, 2024 and June 1st, 2024 from a sample of the general
population of 748 participants based on a statistical distribution
derived from the United States Census, ensuring a proportional
representation of various demographics. Credit Sesame adhered to
ethical guidelines throughout the data collection and analysis
process and ensured participant confidentiality.
About Credit Sesame
Credit Sesame is a financial
wellness platform, that leverages the latest technology, AI, and
analytics to help consumers achieve better financial health and
stability and create better opportunities for themselves and their
families. Credit Sesame has helped millions of consumers improve
their credit scores, increase their approval odds, lower their cost
of credit, and save money. Strong credit health leads to better
financial health and stability, and with Sesame Cash, Credit Sesame
helps accelerate consumers' credit and financial wellness in one
place. Credit Sesame is funded by leading institutional and
strategic investors. It currently operates in the U.S. and
Canada. For more information on
Credit Sesame, visit www.creditsesame.com and follow on
Instagram, Facebook, X, and LinkedIn.
Media Contact:
Kara De Los Reyes
380519@email4pr.com
908-578-3594
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SOURCE Credit Sesame