Social Inequalities

All human societies are characterized by multiple interlocking systems of social stratification. U.S. society stratifies its members according to, among other things, social class, biological sex, race/ethnicity, age, and, many sociologists now argue, consumer credit score.

Do credit scores diminish the life chances of low-income people?

Don't use plagiarized sources. Get Your Custom Essay on
Social Inequalities
Just from $13/Page
Order Essay

Consumer credit scoring creates “risk profiles” for consumers based on payment history, debt, length of credit history, number of new credit accounts, and types of credit in use.

Because credit scoring doesn’t take into account race/ethnicity, age (usually), marital status, or income, some argue that the system is fair.

A common argument is that if a person has a low credit score, it’s because of his or her own irresponsibility. However, this argument ignores the link between consumer credit scoring and social class.

Low-income people are less likely to be able to pay their bills on time—the most important factor in the scoring system.

They are also more likely to have high debt ratios relative to income than their high-income counterparts.

Some sociologists argue that the consumer credit scoring system is an emergent stratification system that diminishes the life chances of low-income people while enhancing those of high-income people.

Let’s explore what these sociologists mean.

Fran has recently graduated from college with her Bachelor of Arts degree. She has student loan debt. She is underemployed, working as a manager in a retail store while she tries to find a better job. Her parents are very emotionally supportive of her, though they have limited financial means.

Between 2009 and 2013, 45% of recent college graduates were underemployed. This means they worked in a job that did not require a Bachelor’s degree.

Your student loan payment is due. Your mother’s car has broken down. She asks you for money for her car repairs so that she can get to and from work. (There is no public transportation in your town.)

You don’t have enough money to pay both bills.

you choose to repair your mom’s car, The student loan company has charged a late fee. Your credit score has also been lowered because you did not make the student loan payment on time. However, your mother is really grateful for your help.

You’ve been living with your mom since graduation, and it’s not your preferred situation. You decide to move out.

You find a perfect apartment. The price isn’t too high, and the complex even has a swimming pool.

However, because of your late student loan payment, your credit score has been lowered.

The landlord offers you the apartment, but only if you pay a $1,500 deposit. If your credit score were higher, you would have to pay only a $500 deposit.

You look for a different apartment

It turns out that all of the apartment complexes run credit checks and charge large deposits to people with low credit scores. In the end, the only apartment you can find that does not run a credit check is a rundown apartment in a bad part of town. When you move in, you have to have utilities turned on.

It turns out that utility companies also run credit checks. Utility customers with low credit scores are charged large deposits in order to have services turned on.

You end up skipping your next student loan payment to pay to have your utilities turned on, which further lowers your credit score. Over the past few decades, the consumer credit scoring system in the U.S. has spread to virtually all areas of life.

Initially used to estimate risk for banks giving loans, it is now routinely used by utility companies, landlords, and even employers to rank applicants. Those with low scores may be denied housing, jobs, and other services.

In your spare time, you’ve been applying for and occasionally getting interviews for better-paying jobs at which you will actually use your degree.

You’ve finally been offered one of these jobs! You will be paid a salary instead of an hourly rate. The work is relevant to your degree, and the salary is adequate.

It turns out that the job offer is contingent on a background check, which includes a credit check.

I try my luck with the credit check.

I’m a little concerned that my future coworkers will somehow know about my low credit score, but I need this job, so I agree to the credit check anyway.

The job offer is rescinded

The job involves dealing with money, and the low credit score indicates to the prospective employer that you are a high risk for such a position.

Take a moment to reflect on the various choices you made in the simulation and their outcomes. one paragraph, discuss how both individual and societal factors influenced your decision making and how these decisions can be understood using sociological concepts.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

As the best, my homework help website in the world, strives to deliver only high-quality finished papers to all customers. We value impeccable quality and guarantee that we will deliver on that promise more than anything else. We will deliver!
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-Back Guarantee

Have you received your finished paper but are not satisfied with what our writer submitted? You can initiate our money-back guarantee to get your money back with no strings attached.

Read more

Zero-Plagiarism Guarantee is the best my homework help website in the world. At WritersABC, we have a team of certified, tried, and tested writers who work around the clock to ensure that you receive only high-quality, 100% original finished papers.

Read more

Free-Revision Policy

At WritersABC, we guarantee all our customers of the best essay writing service in the writing industry. And that’s precisely what we strive to deliver. As such, we encourage all our customers to utilize our unlimited free-revision policy if you aren’t satisfied with your paper. Don’t accept any paper until you are 100% satisfied with it.

Read more

Privacy Policy

We value the trust that our clients accord us and respect every customers’ rights to personal data protection. We will never share, sell, or rent any information that we collect from you with any third parties. Both your personal and financial information is safe with us.

Read more

Fair-Cooperation Guarantee

We have only gotten this far with the help of our loyal customers and a team of dedicated experts. As the best, my homework help website, WritersABC implores customers to help make our writers’ work easier. Visit our fair-cooperation guarantee for more information on the same.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages