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Consumer Perceptions of the Consumer Credit Process
Author(s) -
DAUTEN DALE A.,
DAUTEN JOEL J.
Publication year - 1976
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.1976.tb00572.x
Subject(s) - loan , scope (computer science) , business , credit history , credit reference , credit enhancement , credit card interest , credit rating , process (computing) , perception , interest rate , finance , marketing , actuarial science , credit risk , operating system , neuroscience , computer science , biology , programming language
This research contrasts the perceptions of consumers with those of loan officers faced with similar credit application situations. Fundamental misperceptions of the credit granting process are encountered. Consumers clearly misperceive the credit standards of both banks and finance companies. Given large interest rate differentials between loan sources and the narrow shopping scope of most consumers for consumer credit, equitable allocation of credit dollars demands greater appreciation of the nature of the credit evaluation process by lender and borrower.