Urban Community Credit Scores: Exploring the Use of Urban Geography and Geographical Information Systems
17 Pages Posted: 22 Jul 2014
Date Written: May 14, 2014
While social security numbers are issued by the Social Security Administration (SSA) for the purpose of collecting revenue and distributing benefits and to manage data for that purpose, the three major credit bureaus and other agencies use these numbers to identify individuals for other purposes. The credit reporting agencies or bureaus also create credit profiles and credit scores to analyze risk factors for employers, banks, property managers, and many other lenders concerning people seeking credit. However, credit bureau agencies also compile data on target groups and compare the controlled data to compose individual credit scores, which is attached to individual social security numbers. Additionally, the credit agencies create maps based on the geographical and demographic information of consumers in a given area and use these geographic information systems (GIS) to compare the data to the highest scores in the United States to create a comparative score score. Therefore, the credit bureau data may help create lower credit scores and unequal lending opportunities, higher interest rates, racial steering, segregation, and discrimination against the population in urban communities.
Keywords: Credits scores, Housing Discrimination, Poverty, Credit reporting, Racial Coding
JEL Classification: J18, J68, J15, H42, J78, Q15, Q48, Z10
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