全球智库信息集成服务系统(G2TT): DP13884 Credit Building or Credit Crumbling? A Credit Builder Loan’s Effects on Consumer Behavior, Credit Scores and Their Predictive Power

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP13884
	DP13884 Credit Building or Credit Crumbling? A Credit Builder Loan’s Effects on Consumer Behavior, Credit Scores and Their Predictive Power
	Jeremy Burke; Julian C. Jamison; Dean Karlan; Kata Mihaly; Jonathan Zinman
发表日期	2019-07-22
出版年	2019
语种	英语
摘要	How does the large market for credit score improvement products affect consumers and market efficiency? For consumers, we use a randomized encouragement design on a standard credit builder loan (CBL) and find null average effects on scores. But a generalized random forest algorithm finds important heterogeneity, most starkly with respect to baseline installment credit activity. CBLs induce delinquency on pre-existing loan obligations, suggesting that even a seemingly modest additional claim on monthly cash flows is too much for many consumers to manage. For the market, CBL take-up reveals information: takers experience future score improvements relative to non-takers, which, given null average treatment effects, implies positive selection. However, we find suggestive evidence that the CBL weakens the score’s power for predicting default in some cases. We propose simple changes, to CBL provider strategy and credit bureau reporting categories, that could produce more uniformly positive effects for both individuals and the market.
主题	Financial Economics ; Public Economics
关键词	Subprime Thin file Credit scoring Screening Credit invisibles Household finance Consumer finance
URL	https://cepr.org/publications/dp13884-0
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/542760
推荐引用方式 GB/T 7714	Jeremy Burke,Julian C. Jamison,Dean Karlan,等. DP13884 Credit Building or Credit Crumbling? A Credit Builder Loan’s Effects on Consumer Behavior, Credit Scores and Their Predictive Power. 2019.