Redlining is best described as:

Redlining is best understood as a discriminatory practice in lending where financial institutions refuse to provide loans or services to individuals based on their geographic location, rather than their creditworthiness or financial status. This practice historically targeted neighborhoods predominantly inhabited by minority populations, effectively denying them access to mortgage financing and other banking services.

This designation arises from the literal practice of drawing red lines on maps to delineate areas that lenders considered too risky to invest in, often based on biased assumptions about the residents' ability to repay loans. Consequently, residents in these areas were systematically excluded from homeownership opportunities, hindering their ability to build wealth and contributing to ongoing socioeconomic disparities.

Understanding redlining highlights the importance of equitable lending practices and efforts to ensure access to financing for all individuals, regardless of their geographic location.