This paper evaluates the presence of racial disparities in the issuance of consumer credit. Using a unique and proprietary database of credit histories from a major credit bureau, this paper links location-based information on race with individual credit files. After controlling for the influence of such other place-specific factors as housing vacancy rates and general population demographics, the paper finds qualitatively large differences in the amount of credit offered to similarly qualified applicants living in Black versus White areas. The high quality of the data allow the paper to distinguish between issuer-provided credit (supply) and utilization of credit (demand). Additional estimates using a database of payday lending locations provide support for idea that issuers condition lending on location.

Excerpt from Credit Card Redlining: Hearings Before the Subcommittee on Consumer Affairs of the Committee on Banking, Housing, and Urban Affairs, United States Senate, Ninety-Sixth Congress, First Session Mrs. Cherry earns about a year and has been employed by the same employer for many years as a typesetter. She enjoys good credit references in the Atlanta area and takes pride in her ability to honor her obligations to her creditors. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.