The Role of Student Loans in Credit Card Access Across Generations

2019 ◽  
Author(s):  
Troy Felver ◽  
Jane Yoo
Keyword(s):  
Credit Card ◽  
Student Loans

scholarly journals Credit card cue effect

2019 ◽  
Vol 38 (2) ◽  
pp. 368-383
Author(s):  
King Yin Wong ◽  
Michael Lynn
Keyword(s):  
Credit Card ◽  
Design Methodology ◽  
Credit Cards ◽  
Well Being ◽  
Financial Security ◽  
Consumer Spending ◽  
Content Type ◽  
Moderation Effect ◽  
Show Evidence

Purpose The extant literature has mixed results regarding the credit card cue effect. Some showed that credit card cues stimulate spending, whereas others were unable to replicate the findings or found that cues discourage consumer spending. The purpose of this paper is to investigate how consumers’ sensitivity to the pain of payment affects their mental associations about credit cards and how the differences in credit card associations moderate the credit card cue effect on spending, providing a possible explanation for the mixed results in the literature. Furthermore, this paper examines the role of consumers’ perceived financial well-being, measured by their perceptions of current and future wealth and their sense of financial security, in mediating this moderation effect. Design/methodology/approach An experimental study was conducted with a sample of 337 participants to test the hypothesized model. Findings After being shown credit card cues, spendthrift participants had more spending-related thoughts and less debt-related thoughts, perceived themselves as having better financial well-being and consequently spent more than tightwad participants. Originality/value To the authors’ knowledge, this is the first study to investigate the direct link between an exposure to credit card cues and perceived financial well-being, and one of the few to show evidence of the moderating effect of consumers’ sensitivity to the pain of payment on spending when credit card cues are present. This study suggests that marketers may use credit card cues to promote consumer spending, whereas consumers, especially spendthrifts, should be aware of how credit card cues may inflate their perceived financial well-being and stimulate them to spend more.

Electronic Publishing: The Role of Carrier and Publisher

1986 ◽  
Vol 21 (1) ◽  
pp. 40-47
Author(s):  
Richard M. Neustadt
Keyword(s):  
Los Angeles ◽  
Credit Card ◽  
Electronic Publishing ◽  
Bulletin Board ◽  
Credit Card Number ◽  
Electronic Bulletin Board ◽  
Phone Calls ◽  
Card Number ◽  
Criminal Charge

Since this is a legal seminar, I thought it would be appropriate to begin with a case. There is a person in Los Angeles who has been operating an electronic bulletin board on his personal computer. What that means is that he has memory attached to his computer, and it is possible for anyone else in the country with a computer to dial into that bulletin board and leave a message automatically in the memory. That message can then be accessed by anyone else who dials in.This person does not exercise any control over the messages that are put in. It is open to anyone who wants to put a message in there. Somebody put into that bulletin board the telephone credit card number of a rich person. Subsequently, many other people dialed into the bulletin board, got the telephone credit card number and charged phone calls to that person. No one knows where the number came from. The board operator was prosecuted under a criminal charge. The question is, is he liable?

scholarly journals Attitudes toward Credit and Finances among College Students in Brazil and the United States

2013 ◽  
Vol 1 (1) ◽  
pp. 132 ◽  
Author(s):  
Jill M. Norvilitis ◽  
Wesley Mendes-Da-Silva
Keyword(s):  
United States ◽  
College Students ◽  
Parenting Practices ◽  
Credit Card ◽  
Student Loans ◽  
Credit Cards ◽  
Well Being ◽  
Developed Countries ◽  
The United States ◽  
Delay Of Gratification

Although research on credit card debt in developed countries has identified predictors of debt among<br />college students, it is unknown whether these same predictors apply in emerging markets, such as<br />Brazil. To examine this issue, a total of 1257 college students, 814 from Brazil and 443 from the United<br />States, participated in a study exploring the utility of a theory of planned behavior as a predictor of<br />credit card debtand student loans among college students, as well as perceived financial well-being.<br />Compared to the Brazilian participants, the American sample was more financially self-confident,<br />reported better financial well-being, and was more likely to believe that credit cards are negative.<br />Similar predictors of financial well-being emerged in the samples. Specifically, parenting practices<br />related to money and better self-reported delay of gratification are related to more positive financial<br />attitudes and lower levels of debt. Although the debt to income ratio among card holders was similar,<br />Brazilian students held more credit cards than American students. Greater delay of gratification was<br />related to lower levels of student loans in the United States, but there were no significant predictors of<br />student loans in Brazil.

Kueski: Revolutionizing Consumer Credit in Mexico

2017 ◽  
pp. 1-10
Author(s):  
Sarit Markovich ◽  
Nilima Achwal
Keyword(s):  
Financial Market ◽  
Financial Services ◽  
Scoring System ◽  
Credit Card ◽  
Consumer Credit ◽  
Credit Scoring ◽  
Loan Approval

This case asks students to step into the role of Adalberto Flores, co-founder and CEO of Kueski, one of the first companies to develop a proprietary algorithm for online loan approval in Mexico. Mexico lacks a standardized credit scoring system, making it difficult for many Mexicans to get approved for a loan or credit card. This, together with the fact that Mexicans generally do not trust traditional banks, makes Mexico an attractive opportunity for fintech companies. Growth, however, could require fintech companies to partner with traditional banks. Students assume the role of Flores to think about the benefits and risks associated with a partnership between Kueski and traditional banks. Students are also challenged to compare the structure of U.S. financial services markets with the Mexican structure and consider the implications on the sustainability of fintech companies in the two markets. The teaching note analyzes the Mexican financial market and the benefits and threats it holds for fintech companies, and outlines a framework for evaluating the risk associated with partnerships.

The Hidden Role of Contract Terms: The Case of Credit Card Minimum Payments in Mexico

2021 ◽  
Author(s):  
Paolina C. Medina ◽  
Jose L. Negrin
Keyword(s):  
Credit Card ◽  
Total Effect ◽  
Regulatory Change ◽  
Financial Contracts ◽  
Point Change ◽  
Whole Number

This paper argues that thresholds in financial contracts act as implicit nudges in consumers’ decisions. Exploiting a regulatory change to credit card minimum payments in Mexico, we find that a 1-percentage point change in minimum payments leads to a 0.87-percentage point change in actual payments, both expressed as a percentage of total balances. We decompose the effect of minimum payments into a constraining effect and a reference effect. The former captures the effect of minimum payments as a binding constraint and accounts for 59% of its total effect. The latter captures any remaining impact of changes in minimum payments beyond their constraining effect and represents 41% of the total. In turn, 67% of the reference effect is explained by the multiple heuristic: the tendency of consumers to pay whole-number multiples of the minimum payment. This paper was accepted by Kay Giesecke, finance.

Securitization Process

2019 ◽  
pp. 365-382
Author(s):  
Mark Ferguson ◽  
Joseph Mcbride ◽  
Kevin Tripp
Keyword(s):  
Capital Structure ◽  
Credit Card ◽  
Student Loans ◽  
General Structure ◽  
Commercial Real Estate ◽  
Single Family ◽  
Risk Return ◽  
Mortgage Backed Securities ◽  
Asset Backed Securities ◽  
Opening Up

The securitization process has become an essential tool that provides liquidity to firms and borrowers while opening up the breadth and depth of the capital markets to previously underserved individuals and firms. Securitized products pool illiquid, idiosyncratic assets or contracts, turn those pools into claims (bonds) with a new capital structure with differing risk-return attributes, and sell those bonds to institutional investors. Securitization began in the housing market where single-family mortgages were pooled and sold to investors as mortgage-backed securities. The securitized market has increased in size and complexity to include many other asset classes such as commercial real estate loans in commercial mortgage-backed securities, student loans, credit card debt, auto leases, equipment leases, and aircraft leases in asset-backed securities. The purpose of this chapter is to describe the participants in and the general structure of securitizations.

The moderating role of perceived social risk in bank credit card referral programs

2020 ◽  
Vol 38 (7) ◽  
pp. 1601-1616
Author(s):  
Chanho Song ◽  
Tuo Wang ◽  
Hyunjung Lee ◽  
Michael Y. Hu
Keyword(s):  
Credit Card ◽  
Social Risk ◽  
Content Type ◽  
Referral Decisions ◽  
Social Risks ◽  
Risk Balance ◽  
Referral Decision ◽  
Amazon's Mechanical Turk ◽  
Moderating Role

PurposeThe purpose of this paper is to investigate how the effects of referral rewards in referral reward programs (RRPs) are moderated through perceived social risk of a recommender.Design/methodology/approachA total of 717 consumers are accessed through Amazon's Mechanical Turk worker panel. The authors use t-test and analysis of variance to test the proposed hypotheses.FindingsThe findings show that consumers with high perceived social risk balance financial rewards with social risks, while low social risk consumers largely ignore these social risk elements surrounding a referral decision.Originality/valueThe inclusion of perceived social risk provides the opportunity to fully understand how a consumer goes about balancing social risk and referral rewards in making referral decisions. The concept of social risk has not been previously applied to this context.

Surveying Mobile Commerce Environments

2005 ◽  
pp. 2702-2711
Author(s):  
Jari Veijalainen ◽  
Mathias Weske
Keyword(s):  
User Interface ◽  
Credit Card ◽  
Mobile Terminal ◽  
Mobile Commerce ◽  
Public Key ◽  
Mobile Terminals ◽  
The Public ◽  
Authentication And Authorization ◽  
New Phase

During the last five years, the term mobile commerce (m-commerce) has appeared in the vocabulary of business people and researchers. Historically and conceptually, m-commerce can be regarded a new phase in electronic commerce (e-commerce). Although the term was introduced without a clear meaning and it is still lacking a single widely accepted definition, most people would say that the term m-commerce refers to e-commerce activities performed by people while on the move. Thus, m-commerce involves e-commerce transactions where a mobile terminal and a wireless network are used to conduct them. Therefore, m-commerce takes advantage of the e-commerce infrastructure developed for Internet e-commerce. Although in some cases an m-commerce transaction might be an alternative to a regular e-commerce transaction (such as buying a book) performed using a workstation and wired network, in many cases this is not the situation. The limitations of the mobile device - for instance, user interface limitations - are such that it is not attractive to perform typical Internet e-commerce transactions on them. Wireless technologies, combined with so-called ‘Internet-enabled’ terminals, constitute an ideal platform to realize new types of e-commerce transactions that are not possible or reasonable for wired terminals. The small and light, yet powerful, mobile terminals are almost always carried by their owners, just like wallets or watches. They can indeed also store electronic cash, credit card information, tickets, certificates of the Public Key Infrastructure (PKI), and so forth. Thus, they can assume the role of an e-wallet, as well as function as authentication and authorization devices in various contexts.

The Relationship Between ADHD Symptomatology and Financial Well-Being Among College Students

2019 ◽  
pp. 108705471988744
Author(s):  
Jill M. Norvilitis ◽  
Braden K. Linn ◽  
Michelle M. Merwin
Keyword(s):  
College Students ◽  
Credit Card ◽  
Student Loans ◽  
Well Being ◽  
Student Loan ◽  
Financial Strain ◽  
Student Loan Debt ◽  
Financial Difficulties ◽  
Loan Debt ◽  
Students With Adhd

Objective: Although there is research that indicates financial difficulties among adults with ADHD, little research has examined financial well-being among college students with ADHD. Method: The present study explored the relationships between symptoms of ADHD and credit card and student loan debt, expected student loan debt, perceived financial well-being, worries about student loans, and financial strain behaviors among 612 college students at two public universities in different states. Results: Results indicated that students with more symptoms of ADHD reported lower perceived financial well-being, but there was no relationship between symptomatology and credit card and student loan debt or expected student loan debt. Conclusion: These results highlight the opportunity for interventions to address current perceived financial well-being and to prevent future financial concerns.

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