What Is the Community Reinvestment Act?
- The Community Reinvestment Act (CRA) is a federal law designed to encourage banks to serve the credit needs of low- and moderate-income customers.
- Banks are rated based on how much of their lending goes to low and moderate-income borrowers
- You can use these ratings to find banks that have a good record of making loans to borrowers like you.
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Do you ever feel shut out of the banking system because you don't make enough money?
Fortunately, there's a federal law designed to encourage banks to provide loans to people with lower or moderate incomes. It's called the Community Reinvestment Act (CRA).
Getting to know a little about how the CRA works can help you find a bank that will give you a loan even if you have limited financial means.
Why Is the Community Reinvestment Act Important to You?
If you have a low or moderate income, one way to narrow down your search for a lender is to focus on banks that have a good record of making loans to people like you. Thanks to the CRA, bank ratings help you do that.
There are over 4,000 banks in the United States. When you're looking for a loan, such a large number of choices has pros and cons.
Having so many banks means you have a large number of potential lenders to choose from. It also means that finding the right bank can be like looking for a needle in a haystack.
What Is the Community Reinvestment Act?
The Community Reinvestment Act is a federal law passed in 1977 to make sure banks meet the credit needs of their communities, including low- and moderate-income households.
The CRA requires bank regulators to assess banks based on how well they provide services throughout their communities. Part of this rating measures how many loans a bank makes in areas with low or moderate income levels. It also measures loans to specific individuals with low or moderate incomes.
Under the CRA, low income is defined as less than 50% of the median income in the area. Moderate income refers to people who earn between 50% and 80% of the median income in the area.
When lending is monitored by regulators, banks are more likely to serve their entire communities—not just the wealthiest customers. By helping to make credit more available, the CRA encourages economic development in areas that need it the most.
If you meet the definition of low or moderate income, the CRA can help you in two ways:
Banks have an incentive to serve customers like you
The CRA ratings allow you to identify which banks are most likely to make loans to customers like you
How Banks Are Evaluated: What to Look For
Here's how you can tell if a bank is likely to make a loan to someone with low or moderate income.
Under the CRA, bank regulators rate the community lending performance of banks as:
Outstanding
Satisfactory
High satisfactory
Low satisfactory
Needs to Improve
Substantial Non-Compliance
As a borrower with a low or moderate income, you should be most interested in banks with a rating of Outstanding. That tells you the bank has experience working with low- to moderate-income customers. If choices are limited, a bank with a Satisfactory rating may also be worth a shot.
Find CRA Ratings for Banks In Your Area
How do you find the CRA ratings for banks? The Federal Financial Institutions Examination Council (FFIEC) has a search tool.
Three federal agencies supervise U.S. banks:
Federal Deposit Insurance Company (FDIC)
Federal Reserve Board
The Office of the Comptroller of the Currency
It can be confusing to know which bank is supervised by which agency. The FFIEC search tool draws CRA reporting information from all three agencies, so this search tool should allow you to find information on any bank subject to CRA requirements.
With the FFIEC search tool, you can look up the rating of a particular bank, screen by location, or by a particular rating.
For example, you could screen for banks with an Outstanding rating in your state. When filling in the search tool, choose the most recent calendar year to make sure you get current results.
Click Submit for a list of banks that meet your criteria. There’s no guarantee these banks will make you a loan, but their ratings indicate lenders that have a history of making loans to low and moderate-income borrowers.
Loan terms may vary from one bank to the next, so it's best to get quotes on rates and fees from more than one bank to see which offers the best deal for you.
People who aren't high earners may often feel left out of the banking system. That's unfortunate, because that system generally holds the key to opportunities like homeownership.
The Community Reinvestment Act was designed to open up those opportunities to more Americans. Finding a bank with a good CRA rating might be your way to make this law work for you.
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking credit card debt relief during July 2025. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
Credit card balances by age group for those seeking debt relief
How do credit card balances vary across different age groups? In July 2025, people seeking debt relief showed the following trends in their open credit card tradelines and average credit card balances:
Ages 18-25: Average balance of $9,117 with a monthly payment of $283
Ages 26-35: Average balance of $12,438 with a monthly payment of $366
Ages 36-50: Average balance of $15,436 with a monthly payment of $431
Ages 51-65: Average balance of $16,159 with a monthly payment of $523
Ages 65+: Average balance of $16,546 with a monthly payment of $499
These figures show that credit card debt can affect anyone, regardless of age. Managing credit card debt can be challenging, whether you're just starting out or nearing retirement.
Credit card debt - average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average credit card debt for those with a balance was $6,021. The percentage of families with credit card debt was 45%. (Note: It used 2022 data).
Unsurprisingly, the level of credit card debt among those seeking debt relief was much higher. According to July 2025 data, 88% of the debt relief seekers had a credit card balance. The average credit card balance was $16,113.
Here's a quick look at the top five states based on average credit card balance.
| State | Average credit card balance | Average # of open credit card tradelines | Average credit limit | Average Credit Utilization |
|---|---|---|---|---|
| District of Columbia | $16,290 | 7 | $24,102 | 81% |
| Louisiana | $14,614 | 9 | $28,791 | 80% |
| Arkansas | $14,085 | 9 | $27,261 | 78% |
| Indiana | $13,933 | 8 | $25,731 | 78% |
| Kentucky | $13,041 | 8 | $26,156 | 78% |
The statistics are based on all debt relief seekers with a credit card balance over $0.
Are you starting to navigate your finances? Or planning for your retirement? These insights can help you make informed choices. They can help you work toward financial stability and security.
Support for a Brighter Future
No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.
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Author Information
Written by
Richard Barrington
Richard Barrington has over 20 years of experience in the investment management business and has been a financial writer for 15 years. Barrington has appeared on Fox Business News and NPR, and has been quoted by the Wall Street Journal, the New York Times, USA Today, CNBC and many other publications. Prior to beginning his investment career Barrington graduated magna cum laude from St. John Fisher College with a BA in Communications in 1983. In 1991, he earned the Chartered Financial Analyst (CFA) designation from the Association of Investment Management and Research (now the "CFA Institute").
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
What if my bank doesn't have a Community Reinvestment Act rating?
Community Reinvestment Act requirements depend on the size of a bank. Some small banks are not subject to this law's reporting requirements. Also, credit unions aren’t subject to the CRA. That doesn't mean these institutions won't lend you money. It just means you won't be able to see if they have a good history of making loans to low and moderate income borrowers.
Is there a CRA loan program?
Banks may use a name like CRA mortgage to describe loans available to low- to moderate-income borrowers. However, there is no specific CRA mortgage program. Lending standards and loan terms will vary from one lender to another. That’s why it's a good idea to do some comparison shopping.
Are CRA loans only available in certain areas?
No. Banking activities covered by the Community Reinvestment Act include loans and other services that cater to low- and moderate-income individuals no matter where they're located.
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