Fortune Favors the Bold - The Official Mastercard Podcast Who Gets to Be Creditworthy?
Dec 5, 2018
Exploring the challenges of gaining credit access, the discussion features Mwangi, a Kenyan farmer, who faces traditional banking hurdles. The conversation shifts to innovative solutions enhancing financial inclusion for those lacking conventional credit scores. Small businesses also emerge as a focal point, with insights on overcoming barriers to formal loans through alternative assessment methods. This journey reveals how new approaches in creditworthiness can empower marginalized communities and unlock opportunities.
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Mwangi's Farming Loan Struggle
- Mwangi John Karayuki, a Kenyan farmer, struggled to get a bank loan due to lack of formal income records and credit history.
- His farming seasonal income and lack of banking activity made meeting banks' requirements impossible.
Credit Score's Gatekeeping Role
- Creditworthiness in the US is mostly determined by credit reports and scores developed over 50 years.
- These reports require a financial history, excluding people without prior loans or those with irregular banking.
Mona's Credit Denial Story
- Mona Chalabi faced credit denial in the US due to a clerical error despite having financial capability.
- This exemplifies difficulties newcomers and others face in building credit histories.