social shocks at the time of borrowing. There are indications that some borrowers suffer income shocks, but the magnitude is … when borrowing for the first time. Further, I find that high-cost borrowers persistently spend more than they earn and that …-essential spending around the time of borrowing. Taken together, the results indicate that high-cost borrowers have self-control problems …

Using comprehensive credit bureau data, we document that consumers who borrow from marketplace lending (MPL) platforms … have lower credit scores and higher default rates in the long run relative to observably similar applicants for bank loans …