[PDF] Credit Building or Credit Crumbling? A Credit Builder Loan's Effects on Consumer Behavior, Credit Scores and Their Predictive Power | Semantic Scholar (2024)

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@article{Burke2019CreditBO, title={Credit Building or Credit Crumbling? A Credit Builder Loan's Effects on Consumer Behavior, Credit Scores and Their Predictive Power}, author={Jeremy Burke and Julian C. Jamison and Dean S. Karlan and Kata Mihaly and Jonathan Zinman}, journal={Household Finance eJournal}, year={2019}, url={https://api.semanticscholar.org/CorpusID:201442692}}
  • Jeremy Burke, Julian C. Jamison, Jonathan Zinman
  • Published in Social Science Research… 1 July 2019
  • Economics

There is little evidence on how the large market for credit score improvement products affects consumers or credit market efficiency. A randomized encouragement design on a standard credit builder loan (CBL) identifies null average effects on whether consumers have a credit score and the score itself, with important heterogeneity: those with loans outstanding at baseline fare worse, those without fare better. Selection, treatment effect, and prediction models indicate the CBL reveals valuable…

7 Citations

Background Citations

6

7 Citations

Free Riding in Loan Approvals: Evidence from SME Lending in Peru
    I. ArráizM. BruhnBenjamin N. RothC. Ruiz OrtegaRodolfo Stucchi

    Economics

    SSRN Electronic Journal

  • 2019

This paper provides evidence that commercial lenders in Peru free ride off their peers'screening efforts. Leveraging a discontinuity in the loan approval process of a large bank, the study finds that…

An Alternative Credit Scoring System in China's Consumer Lending Market: A System Based on Digital Footprint Data
    G. FuMinjuan SunQingyuan Xu

    Economics, Computer Science

  • 2020

Digital footprints can become an alternative information source for creditworthiness assessment, because of their near-universal data coverage, and because they can by and large resolve the "thin-file" issue, due to the fact that digital footprints come in much larger volume and higher frequency.

  • 3
Consumer Protection for Financial Inclusion in Low and Middle Income Countries: Bridging Regulator and Academic Perspectives
    S. GarzX. GinéDean S. KarlanR. MazerCaitlin SanfordJonathan Zinman

    Law, Economics

    SSRN Electronic Journal

  • 2020

Markets for consumer financial services are growing rapidly in low- and middle-income countries and are being transformed by digital technologies and platforms. With growth and change come concerns…

  • 22
  • PDF
Does Lasting Behavior Change Require Knowledge Change? Evidence from Savings Interventions for Young Adults
    Samantha HornJulian C. JamisonDean S. KarlanJonathan Zinman

    Economics

    SSRN Electronic Journal

  • 2020

Is financial knowledge change necessary for lasting savings behavior change? Or, akin to the canonical Friedman billiards player, can behavior persist “as if” such knowledge is held? We randomize 240…

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Financial Outcomes of Interventions Designed to Improve Retirement Savings: A Systematic Review
    J. BirkenmaierYoungmi KimBrandy R Maynard

    Economics, Business

    Journal of gerontological social work

  • 2020

There is no clear rigorous evidence that the interventions that use a financial capability approach to promote retirement savings improve individual financial behaviors or financial outcomes, according to this systematic review.

  • 9
Five-Year Impacts of Group-Based Financial Education and Savings Promotion for Ugandan Youth
    Samantha HornJulian C. JamisonDean S. KarlanJonathan Zinman

    Economics, Education

    Review of Economics and Statistics

  • 2023

We experimentally evaluate group-based financial education, savings account access, or both for members of Ugandan youth groups. We measure both short- and long-run impacts with one- and five- year…

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  • PDF
Results Using a Strict Scoring Rule among Underserved Clients in Paraguay

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Credit information affects the allocation of consumer credit, but its effects on other markets that are relevant for academic and policy analysis are unknown. This paper measures the effect of…

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Why do negative credit events lead to long-term borrowing constraints? Exploiting banking regulations in Peru and utilizing currency movements, we show that consumers who face a credit rating…

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This paper provides a simple model showing that the extent of competition in credit markets is important in determining the value of lending relationships. Creditors are more likely to finance credit…

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When taking up high-cost debt signals poor credit risk to lenders, consumers must trade off alleviating credit constraints today with exacerbating them in the future. We document this trade-off by…

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