In order to lift the downtrodden neighborhoods in the US, We need to lend to people with low credit scores

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Faced with many challenges from the global pandemic to the economic crisis, America needs a proper planning and implementation policy to ensure that the country is back on track. While all Americans are affected by these crises, the ones that suffer the most are the low-income earners. They are those residing in downtrodden neighborhoods. Thus, special attention must be given to these groups of individuals. 

Real development is not when only some regions in the country are thriving while others are oppressed. A situation where the rich become richer, and the poor become poorer is not healthy for a developed nation like the United States. 

What Is The Implication of Ignoring the Downtrodden Neighborhoods? 

You rarely find a 700 credit score community riot. There are several consequences a country faces when some of its regions are left impoverished. Historically, the United States has been paying these consequences, and it still does. One of the most recent ones is May 25, which saw a black man — George Floyd, who resides in a low-credit score community, killed by a cop. That is not the first of its kind and might not be the last to occur in a low-income neighborhood. 

The occurrence saw many Americans — whites and blacks alike, protesting across the country with economic and social activities being shut down. 

Statistically, downtrodden neighborhoods are prone to more violence. Thus, if a part of the country is left unattended, there may be a rise in insecurity in such a region, affecting the whole country. 

What must be done to address this? 

For the US to maintain its fast growth and to uphold the position of the world superpower it is known for, all Americans, poverty must be reduced to the barest. There should be economic opportunities for all if the country desires to get things right. 

The question now is, how can the US lend a hand to its downtrodden residents? To achieve this, there’s a need for appropriate policies and strategies to catalyze growth, but that is not enough. There must also be a significant change in the American banking system. 

No developed nation can maintain its high development rate if its banking sector operates on some wrong policies. This is the case with the United States. Some banking policies must be changed to favor the downtrodden residents. 

If the impoverished residents are denied access to loans like their wealthy counterparts, growth will only be recorded in some parts of the country while others will remain downtrodden. The banking sector, therefore, needs to lend to people with a low credit score. 

To ensure that the loans are properly utilized and not lavished, empowered bankers should be deployed to oppressed communities. Such bankers should be trained to offer smart lending capital. They should work closely with the community financial coach. Their job will be to educate the people on loans and sensitize them on the required processes. If small businesses, entrepreneurs, and homeowners with low credit scores are offered loans, struggling neighborhoods will be uplifted, more jobs will be created, and the challenges that come with impoverishment will be eliminated.


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