Unequal Access to Credit: The Hidden Impact of Credit Constraints

New York Fed
Saturday, December 19, 2020

The Credit Insecurity Index is a new tool that helps to provide a more comprehensive view of credit access and community credit health. By moving beyond metrics that traditionally focus on residents without a credit file or score, this Index incorporates an additional assessment of residents who are "credit constrained," that is, unlikely to obtain credit at choice to manage emergencies, take advantage of opportunities, or invest in one's future. The report, Unequal Access to Credit: The Hidden Impact of Credit Constraints, explains how the Index provides a more complete picture of communities' financial security by scoring credit insecurity for states and counties over time.