Questions tagged [consumer-credit]
The consumer-credit tag has no usage guidance.
8
questions
1
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1answer
46 views
Why charge higher interest rates to poorer customers?
Consumer loans/credit charge different rates depending on the individual's risk. In particular, it charges more to poorer individuals. Whilst this seems to make sense from a risk perspective, there ...
1
vote
1answer
93 views
Utility Function in Consumer Credit
I have been studying the area of unsecured consumer credit (consumer loans and credit cards) and credit scoring. My question is: can we have a utility function (either a lender's or borrower's utility)...
0
votes
1answer
181 views
Do credit cards create more printed money
As far as I know, when people take a loan from a bank, most of the loan value is electronically printed money, i.e. money that did not exist before.
Is it also what happens with consumer credit cards?
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4
votes
1answer
193 views
Why did the stock of consumer loans held by commercial banks jump in March 2010?
The graph below refers to "Consumer Loans: Credit Cards and Other Revolving Plans, All Commercial Banks", from here.
What happened in March 2010? The data come from the balance sheets of commercial ...
2
votes
2answers
34 views
What's the benefit the bank gets on offering me to pay my water/electricity/gas with credit card?
It says "get extra 40 days to pay your bills" with no interest!
Is it just based on the statistics that people will eventually forget paying and then charge interests from those 40 days, or are there ...
1
vote
1answer
76 views
Is the lack of information on customer behaviour good for banks?
Discussing chapter 18 on Microeconomic Theory Basic Principles and Extensions - Nicholson and Snyder book - regarding Asymmetric information a student raise an interesting point of view regarding the ...
5
votes
2answers
178 views
Learning about Debt and Credit
I am very interested in learning about debt and credit - not personal debt and credit - but debt and credit of countries and the like. I have searched everywhere but it's difficult to find books that ...
12
votes
1answer
681 views
What are estimates of the elasticity of demand for credit with respect to interest rates?
When interest rates go up one percent (not one percentage point), what happens to demand for credit? I've only been able to find two papers in this area:
Gross and Souleles (2001) study credit cards ...
