At the same time, commercial banks reject Black families for credit at twice the rate of white applicants, who are offered straightforward loans at prevailing rates. When they are offered credit, for example, people of color who are equally or more qualified than white counterparts are 62.5 percent more likely to be offered higher-cost loans. Over the life of the car’s note, those fees cost minority applicants about $2,662, per the National Fair Housing Alliance.

These disparities play out in Black Americans’ lived experiences every day, and they have profound intergenerational consequences.