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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/10011281263

Borrowing on the wrong credit card : evidence from Mexico

Ponce, Alejandro; Seira, Enrique; Zamarripa, Guillermo - 2014

We study how consumers allocate debt across credit cards they already hold using new data on credit card activity for a … representative sample of consumers with two homogeneous cards in Mexico. We find that relative prices are a very weak predictor of … the allocation of debt, purchases, and payments. On average, consumers pay 31% above their minimum financing cost …

Persistent link: https://www.econbiz.de/10010363244

Are information disclosure mandates effective? : evidence from the credit card market

Elizondo Flores, 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/10010402563