Research Proposal
Having bad credit is probably an adult’s worst nightmare. You have probably heard that if you have bad credit, you won’t be able to get a car, a house, or even a job. But what does that actually mean? Credit is the ability to borrow money or have access to goods or services with the understanding that you will pay it back later. Your parents, your friends or even yourself have had or currently own a credit card. A credit card is a card that your bank may issue you that allows you to borrow money from them based on the promise that you will pay it back (along with other “agreed” charges). Maybe you really want those new sneakers that came out but you can’t afford it. So, you might use your credit card to be able get the sneakers on the spot and then pay back the money at a later date. In a perfect world, this sounds like a great idea. But sometimes, things happen. What if you don’t pay your bill on time? What if you miss a payment? These things can affect your credit score. Your credit score is a number used to represent your creditworthiness; how likely you are to repay debt. If you have good credit (typically 700 and higher on a 300-850 scale), you can be approved for a loan or credit card, receive better rates for a car and/or a home, help you qualify for lower interest rates and so on. But if you have bad credit, no one will lend you money (or if they do, it won’t be much), you won’t be able to get a credit card, you’ll have higher interest rates and so on. But how much can your credit score affect you?
People’s credit has always been used against them. Many institutions define you by your credit score which is why it can be nerve-wracking for an adult to have bad credit especially in a time of need. Credit scores can be biased and quite flawed. But how biased can they be? I plan on researching how much of a person’s life can be affected by credit; whether it is good credit or bad. You often hear much about credit as you start getting older and it becomes an important aspect of your life. Bills, wealth, race and age can greatly affect your credit score. But I want to investigate the scope of the impact that credit can have in your life. I believe that credit is almost like a curse. It can have either a negative or positive impact on your life. But at times, there’s little you can do it.
I chose this topic because now that I am considered an adult in the eyes of the law, I want to be well prepared for what I am getting myself into. Credit has always been something I heard about but never understood. To help me better understand credit, I will be researching different examples of positive or negative credit discrimination (if there is any), responses to price/rate changes and about credit bureaus and credit reports.
