Credit Scores and Credit Market Outcomes: Evidence from the SSBF and KFS

2013 ◽  
Author(s):  
Rebel A. Cole
Keyword(s):  
Credit Market ◽  
Market Outcomes ◽  
Credit Scores

scholarly journals Assessing Financial Education: Evidence from Boot Camp

2016 ◽  
Vol 8 (2) ◽  
pp. 322-343 ◽  
Author(s):  
William Skimmyhorn
Keyword(s):  
Financial Management ◽  
Natural Experiment ◽  
Financial Education ◽  
First Year ◽  
Retirement Savings ◽  
Market Outcomes ◽  
Us Army ◽  
The Us ◽  
Credit Scores ◽  
Second Year

This study estimates the effects of Personal Financial Management Course attendance and enrollment assistance using a natural experiment in the US Army. New enlistees' course attendance reduces the probability of having credit account balances, average balances, delinquencies, and adverse legal actions in the first year after the course, but it has no effects on accounts in the second year or credit scores in either year. The course and its enrollment assistance substantially increase retirement savings rates and average monthly contributions, with effects that persist through at least two years. The course has no significant effects on military labor market outcomes. (JEL D14, I21, J45)

Signaling and Indeterminacy of Equilibria in Unsecured Credit and Insurance Markets

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Shreemoy Mishra
Keyword(s):  
Interest Rates ◽  
Lower Risk ◽  
Market Failure ◽  
Strategic Behavior ◽  
Multiple Equilibria ◽  
Consumer Credit ◽  
Credit Market ◽  
Insurance Markets ◽  
Equilibrium Amount ◽  
Credit Scores

Abstract I study strategic behavior under ‘credit-based insurance.' It is assumed that higher consumer credit scores are associated with lower risk for insurable losses. Even when default is costless, some borrowers repay loans as a signal of low risk-type to insurers. There are multiple equilibria and equilibrium refinement techniques have no bite. The equilibrium amount of debt is indeterminate. For low credit scores, equilibrium involves randomization between default and repayment. This can explain the ‘hockey-stick' shape of interest rates observed in several markets. Perfect information about consumer risk-type can lead to credit-market failure and lower welfare.

scholarly journals Sex and credit: Do gender interactions matter for credit market outcomes?

2018 ◽  
Vol 87 ◽  
pp. 380-396 ◽  
Author(s):  
Thorsten Beck ◽  
Patrick Behr ◽  
Andreas Madestam
Keyword(s):  
Credit Market ◽  
Market Outcomes ◽  
Gender Interactions

Explaining Ethnic Differentials in Credit Market Outcomes in Zimbabwe

1999 ◽  
Vol 47 (3) ◽  
pp. 585-604 ◽  
Author(s):  
Mayank Raturi ◽  
Anand V. Swamy
Keyword(s):  
Credit Market ◽  
Market Outcomes

scholarly journals How FinTech Enters China’s Credit Market

2019 ◽  
Vol 109 ◽  
pp. 60-64 ◽  
Author(s):  
Harald Hau ◽  
Yi Huang ◽  
Hongzhe Shan ◽  
Zixia Sheng
Keyword(s):  
Credit Market ◽  
Theoretical Models ◽  
Extensive Margin ◽  
Credit Supply ◽  
Comprehensive Data ◽  
Credit Scores

How does FinTech credit mitigate local credit supply frictions in China's segmented credit market? In our simple theoretical models, we show that FinTech credit (i) expands the extensive margin of credit to borrowers of lower credit scores and (ii) provides relatively more credit to borrowers with lower credit scores. We confirm both predictions based on comprehensive data from one of China's largest FinTech credit providers.

Does the Age at Which a Consumer Gets Their First Credit Matter? Credit Bureau Entry Age and First Credit Type Effects on Credit Score

FEDS Notes ◽  
2021 ◽  
Vol 2021 (2918) ◽  
Author(s):  
Lucas Nathe ◽  
Keyword(s):  
Consumer Credit ◽  
Credit Market ◽  
Key Factors ◽  
Access To Credit ◽  
Credit Score ◽  
Credit Scores ◽  
Credit Bureau ◽  
Entry Age

The consumer credit market plays a prominent role in the financial life of U.S. households. Consumers' credit histories and, in particular their credit scores, are key factors that determine their access to credit and the price at which they borrow.

scholarly journals Do Neighborhoods Affect the Credit Market Decisions of Low-Income Borrowers? Evidence from the Moving to Opportunity Experiment

2020 ◽  
Author(s):  
Sarah Miller ◽  
Cindy K Soo
Keyword(s):  
Young Children ◽  
Low Income ◽  
Large Scale ◽  
Credit Market ◽  
Neighborhood Environment ◽  
Moving To Opportunity ◽  
Credit Scores ◽  
Causal Impact ◽  
Scale Experiment ◽  
Neighborhood Choice

Abstract This paper isolates the causal impact of neighborhood environment on the credit outcomes of low-income borrowers by analyzing the participants of the Moving to Opportunity (MTO) experiment. MTO was a unique, large-scale experiment that offered families vouchers to move to better neighborhoods via randomized lottery. We find higher credit scores and use among those required to move to the lowest poverty areas as young children. For those who moved as adults, we find that better neighborhoods lead to a reduction of overdue debts and delinquencies, but only among those given unrestricted neighborhood choice.

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