Growing up in a banking desert can hurt your credit for the rest of your life

The Research Brief is a short take on interesting academic work.The Big IdeaA banking desert is an area without traditional financial institutions and services. They are common in rural areas because large financial institutions are reluctant to operate in less populated areas that are less profitable. Two colleagues and I found that people who grow up in a bank desert on Native American reservations are at a financial disadvantage throughout their adult life. They are less likely to use traditional credit, such as a credit card or a mortgage. When they do, their payments are significantly hig…

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