Credit scoring and its effects on the availability and affordability of credit

Journal of Consumer Affairs

Volumn 43, Issue 3, 2009, Pages 516-537

  Avery, Robert B ^a   Brevoort, Kenneth P ^a   Canner, Glenn B ^a  

^a FEDERAL RESERVE BOARD   (United States)

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EID: 70349317275     PISSN: 00220078     EISSN: 17456606     Source Type: Journal    
DOI: 10.1111/j.1745-6606.2009.01151.x     Document Type: Article

References (7)

1. The Fact Act, Public Law 108-159, enacted December 4, 2003.
2. The three national consumer-reporting agencies are Equifax, Experian and TransUnion LLC.
3. Personal identifying information of the individuals in the sample, such as names and Social Security numbers, was not made available to the Federal Reserve.
4. For the study, staff developed five distinct measures of performance that relate to payments on new or existing accounts and collection actions and derogatory public records. The study focused on credit history scores, that is, scores calculated exclusively on the basis of individuals' credit records as assembled by the three national consumer-reporting agencies. Other kinds of credit scores were not studied here.
5. TransRisk Account Management Score is a registered trademark of TransUnion LLC, and VantageScore is a service mark of VantageScore Solutions LLC.
6. The details of the estimation process and the credit characteristics and their associated weights are provided in the study.
7. The lending industry uses evidence of inquiries made by creditors about an individual's credit record without the issuance of new credit as an indication of loan denial. The data on inquiries are likewise used in this study to infer whether an individual likely experienced a credit denial.