It's a racist term according to this I found, I'll wait for CBB to apologise and warn Perez for his racist language.
"Cholo is a racist slur created by Hispanics (criollos) in the 16th century, and it has been applied to individuals of mixed American Indian ancestry, or other racially mixed origin. Currently the precise usage of Cholo has varied widely in different times and places, but it has mostly a negative connotation.
In modern usage in the United States, the term "cholo" usually indicates a person of Mexican or Mexican-American descent, who is associated with a particular Southwestern culture. The term is used in Caló slang, but it in turn has infiltrated into mainstream American English use, specifically in association with American youth movements such as the "lowrider" subculture, or the hip hop scene in general. The word is sometimes associated with Hispanic gang culture, especially in popular media, but the origin and history of the modern usage is somewhat complex. "