Credit Building or Credit Crumbling? A Credit Builder Loan's Effects on Consumer Behavior and Market Efficiency in the United States
成果类型：
Article
署名作者：
Burke, Jeremy; Jamison, Julian; Karlan, Dean; Mihaly, Kata; Zinman, Jonathan
署名单位：
University of Southern California; University of Exeter; Northwestern University; RAND Corporation; Dartmouth College
刊物名称：
REVIEW OF FINANCIAL STUDIES
ISSN/ISSBN：
0893-9454
DOI：
10.1093/rfs/hhac060
发表日期：
2023
页码：
1585
关键词：
摘要：
A randomized encouragement design yields null average effects of a credit builder loan (CBL) on consumer credit scores. But machine learning algorithms indicate the nulls are due to stark, offsetting treatment effects depending on baseline installment credit activity. Delinquency on preexisting loan obligations drives the negative effects, suggesting that adding a CBL overextends some consumers and generates negative externalities on other lenders. More favorably for the market, CBL take-up generates positive selection on score improvements. Simple changes to CBL practice, particularly to provider screening and credit bureau reporting, could ameliorate the negative effects for consumers and the market.
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