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Factors Determining Credit Worthiness of Low Income Consumers
Author(s) -
TABOR JOAN S.,
BOWERS JEAN S.
Publication year - 1977
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.1745-6606.1977.tb00614.x
Subject(s) - loan , socioeconomic status , low income , credit history , business , credit union , juvenile delinquency , actuarial science , economics , credit reference , finance , demographic economics , credit risk , psychology , population , demography , psychiatry , sociology
The purpose of this study was to identify variables that can be used in granting credit to low income consumers. Credit behavior, as exemplified by loan repayment, was examined with respect to economic, demographic, and socioeconomic characteristics of borrowers from a credit union that had been established to serve low income people in Columbus, Ohio. Findings indicate that early warning signals—default and delinquency—are given by borrowers when a loan is going bad. Consumer education and financial counseling might help eliminate this problem.