Credit Card Reporting Literacy: It’s Effects On The Quality Of Life Within The African American Community. By: Kaye D. Jackson

Credit Reporting Literacy is defined simply as the consumers understanding of the basic of credit reporting and the disputes process, if needed be. The (GAO) Government Accountability Office, states that many consumers understood just what a credit report contained and the sources of this information (for example Equifax) and about 60 percent had seen their credit report. The GAO furthers states that many consumers did not know more detailed information, such as, how long items remained on their credit report or the impact their credit reports or the impact their credit history could have on their insurances rates and potential employment. Further behaviors, such as, using all their available credit could negatively affect their scores. Many consumer knew their right to dispute an inaccurate credit report (to be exact about 18 percent), but most consumers did not fully understand their right in the dispute processes. First, there is no cost to dispute inaccurate information, or that they could contact the Federal Trade Commission, which is the Federal agency primarily responsible for enforcing consumer rights with respect to credit reporting agencies, if they could not resolve a disputes with the (CRA’S). Bottom line; How does this reporting affect the Quality of Life for African Americans? Let’s examine the following factors: For African Americans households, more than 80 percent with Credit Cards are in debt, and nearly a quarter of African Americans credit cards holders must set aside 40 percent of their income to paying off debt, reported by, (Jose Garcia of DMI BLOC). The average credit card interest rate for people of color hovered around 22 percent, 10 percent higher than the rate paid by high- income white’s according