Using newly linked data from over 25 million Americans—combining credit bureau records with U.S. Census and tax data—this study reveals large and persistent gaps in credit access by race, class, and place. By their mid-twenties, individuals who are Black, low-income, or grow up in certain regions—like the Southeast and Appalachia—have significantly lower credit scores than their peers. These lower scores are linked to tighter credit constraints, including higher interest rates, lower credit limits, and greater use of high-cost financial services.

We also show that credit scores both reflect and understate deeper disparities in repayment behavior. Among borrowers with the same credit score, Black and low-income individuals are significantly more likely to fall behind on payments than their white or high-income peers. At the same time, even with perfect repayment histories, Black, Hispanic, and low-income borrowers tend to receive lower credit scores—leading to worse credit terms, such as higher interest rates or lower credit limits. These gaps are not fully explained by income or wealth.

Instead, where someone grows up plays a powerful role. Places that foster upward mobility also promote stronger repayment behavior, suggesting that early-life environments—like family financial habits, neighborhood norms, and access to credit—shape long-term financial outcomes.