when it comes to applying for credit the frb survey showed that americans with incomes under 50 000 per year were much more likely to be denied traditional bank credit than those with incomes over 100 000 39 vs 9 respectively in every income bracket black and latinx individuals were more likely to experience an adverse credit outcome than white applicants 2
community development financial institutions cdfis provide loans to home buyers and businesses in rural impoverished and disadvantaged communities the fdic study came to similar conclusions regarding links between the underbanked and lower income lower education levels and less access to credit it also explored bill payment methods finding that 11 9 of households used money orders 5 5 used cashier s checks and 4 9 used bill payment services such as those offered by western union and moneygram to pay their bills 7both the frb and the fdic have found over the years that households with less predictable and more volatile income were more likely to be underbanked than those with a steady paycheck 24