Credit scores play a crucial role in modern life, determining access to housing, insurance, and jobs. Originating from credit reports compiled by agencies like FICO and Vantage, these scores are used by lenders to assess risk and set interest rates, with historical biases impacting marginalized communities.

Exploring the significance of credit scores in modern society, this chapter delves into the challenges faced by individuals without a credit score, highlighting how it can hinder access to essential services like renting apartments, obtaining car insurance, and securing employment.

Credit scoring companies use different algorithms to calculate credit scores, focusing on factors like credit history length, account mix, payment history, and account balances. Lenders use these scores to determine loan eligibility and interest rates, impacting borrowers' financial decisions and lives.

The chapter delves into the historical roots of the American credit system, highlighting how creditworthiness was initially based on personal character and interpersonal relationships. It explores the transition from an interpersonal credit system to a more formalized structure post-Civil War, marked by the emergence of credit reports and the need for trust in business dealings.

The chapter discusses the historical practices of credit discrimination based on race, gender, and sexuality, leading to the Equal Credit Opportunity Act. It highlights how factors like employment history and neighborhood can indirectly impact credit decisions.

Racist credit policies from the past continue to affect generations today, with more than half of black adults facing higher interest rates due to low credit scores. Efforts to address disparities include outlawing credit score use in non-lending decisions and exploring alternative credit assessment methods.