Sex Discrimination and Credit Cutbacks

Author: Laura Kozien
Subject: Sex Discrimination and Credit Cutbacks

 

Change.org recently posted a fascinating (and enraging) blog on the latest phenomenon in credit cutbacks. Women are facing nothing less than sex discrimination in that mortgage lenders are now considering loss of income due to maternity leave as unemployment, resulting in disqualification or severe reduction in the loan amount. The article couldn't have been timelier—the very same day that it was released, I was participating in a brainstorming session with ACCION USA's loan consultants about the challenges that our women borrowers face. As a single woman with an independent streak—especially when it comes to finances—I was shocked to hear the laundry list of credit, family, and financial issues that make it harder for many women to get loans: Divorces can be costly and bitter, leaving women high bills to pay and ruined credit While a majority of women act as the financial managers of their household, many keep their bills, credit cards, and finances in their husband's name. This doesn't allow a woman to build her own credit history, and therefore qualify for her own loan when she needs it Women frequently do not want to involve their husbands in their businesses, while lenders of ten require husbands to co-borrow or cosign loans. While this could be because of pride and independence, I can't help but think that sometimes more sinister issues are at play (control? anger?). If you're a microfinance lender that works with women—what issues can you add to this list? What do you think are the most important things to address in terms of increasing access to capital—be it for personal or business use—for women?

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