You're kind of right in that it is discrimination but it's not about  the individual although it affects individuals. Redlining is when a bank or insurance Co. ect ect draws a red line on a map around certain districts and raise ratres or denies loans or services based on the performance history in those districts. Usaually low income districts and as would be the case in low income disricts late payments and defaults on payments is probably higher than in a middle class districts. It has nothing to do with trying to stop blacks or hispanics from getting loans so whites can get them. Most whites would not try to buy property in the those districs.

 

Question; if you live in a high crime area why shouldn't your insurance rates be higher than someone that lives in a low crime area?

 

Now that would not apply to loans in my mind. The question there should be if you have good credit and a good enough job why should you pay higher rates because where you live?

 

And if you have bad credit and are out of work why would anybody lend you anything?