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Does getting a mortgage affect credit card use?

Fulford, Scott L.; Stavins, Joanna - 2019

ways: A debt effect increases credit card spending, while a credit effect leads to higher credit limits. In the short run … crisis, the credit effect exceeded the debt effect in the long run, pushing down long-term utilization. In our sample period … after the financial crisis, the debt effect dominated in the long run, and credit card utilization rates rose upon the …

Persistent link: https://www.econbiz.de/10012388944

The role of credit on the evolution of wealth inequality in the USA

Oviedo Moguel, Rodolfo - 2020

In the USA, the share of household wealth held by the richest 1% increased from 23.5% in 1980 to 41.8% in 2012. This paper contributes to understanding the causes behind this increase. First, using an accounting decomposition, I show that more than half of the increase in the share of the top 1%...

Persistent link: https://www.econbiz.de/10012616406

Access to credit: Awareness and use of formal and informal credit institutions

Campero, Alejandra; Kaiser, Karen - 2013

In this paper we study the determinants of use of formal and informal credit sources. Given that awareness is a necessary step towards use of credit, in order to control for the possible selection bias we decompose the decision to use credit as a two stage decision process in which first,...

Persistent link: https://www.econbiz.de/10010322566

How consumers pay: Adoption and use of payments

Schuh, Scott; Stavins, Joanna - 2012

Using data from a nationally representative survey on consumer payment behavior, we estimate Heckman two-stage regressions on the adoption and use of seven different payment instruments. We find that the characteristics of payments are important in determining consumer payment behavior, even...

Persistent link: https://www.econbiz.de/10010343358

Integrated household surveys: An assessment of U.S. methods and an innovation

Samphantharak, Krislert; Schuh, Scott; Townsend, Robert M. - 2017

We present a vision for improving household financial surveys by integrating responses from questionnaires more completely with financial statements and combining them with payments data from diaries. Integrated household financial accounts - balance sheet, income statement, and statement of...

Persistent link: https://www.econbiz.de/10012059581

Credit card utilization and consumption over the life cycle and business cycle

Fulford, Scott L.; Schuh, Scott - 2017

individuals. We show that debt changes at the same time as credit, so credit utilization is remarkably stable. From ages 20 … stable utilization closely matching the individual, life-cycle, and business-cycle relationships between credit and debt. The …

Persistent link: https://www.econbiz.de/10012059588

Credit card debt and consumer payment choice: What can we learn from credit bureau data?

Stavins, Joanna - 2018

consumers who carry credit card debt might be liquidity constrained and not have cheaper borrowing alternatives, the high cost … of paying off credit card debt could exacerbate existing inequalities in disposable income among consumers. …

Persistent link: https://www.econbiz.de/10012059598

Income and the CARD Act's ability-to-pay rule in the US credit card market

Fulford, Scott L.; Stavins, Joanna - 2024

In consumer credit, "ability-to-pay" (ATP) rules require lenders to consider whether the consumer can repay a loan without experiencing undue hardship. ATP rules have recently been implemented or considered in many countries and markets. Using a large panel of credit card accounts, we study the...

Persistent link: https://www.econbiz.de/10014581809

Bancarizing with credit cards: Experimental evidence on interest rates and minimum payments elasticities for new clients

Seira, Enrique; Castellanos, Sara G.; Hernández, Diego … - 2015

We study the bancarization of marginal borrowers using credit cards and document that this process is difficult: default risk is substantial, returns heterogeneous, and account closings common. We also take advantage of a randomized control trial that varied interest rates and minimum payments...

Persistent link: https://www.econbiz.de/10011445061

Are information disclosure mandates effective? Evidence from the credit card market

Elizondo, Alan; Seira, Enrique - 2014

Consumer protection in financial markets in the form of information disclosure is high on governments agendas, despite the fact that the empirical evidence on its effectiveness is scarce. To measure the impact of Truth-in-Lending-Act-type disclosures on default and indebtedness, as well as of...

Persistent link: https://www.econbiz.de/10011445078