Very little is known about the number or characteristics of credit invisibles or consumers with unscored credit records. This Data Point documents the results of a research project undertaken by Staff in the Office of Research of the Consumer Financial Protection Bureau (CFPB) to better...

This study analyzes the effect of individual finances (specifically creditworthiness and severely delinquent debt) on mortality risk. A large (approximately 170,000 individuals) subsample of a quarterly panel data set of individual credit reports is utilized in an instrumental variables design....

Many service providers work with clients who are financially unstable. Financial instability can vary depending on the person, but common characteristics include having limited or unpredictable income, being behind on rent, not having enough money for food and other basics, and having...

This report presents the results of the Survey of Consumer Views on Debt (“survey”) which was conducted by the Consumer Financial Protection Bureau (“Bureau”) between December 2014 and March 2015. The survey results substantially expand the understanding of debt collection in the United...

To test out the impact of rules of thumb in helping consumers decrease their credit card debt, the CFPB commissioned a rigorous study of two financial rules of thumb on consumers with revolving credit card debt. We created two new guidelines aimed at aiding consumers to decrease their revolving...

Using a dataset covering one quarter of the U.S. general-purpose credit card market, we document that 29% of accounts regularly make payments at or near the minimum payment. We exploit changes in issuers' minimum payment formulas to distinguish between liquidity constraints and anchoring as...

This Debt Management Guide was created to assist volunteers at WoodGreen’s groundbreaking Debt Management Clinic, who meet one-on-one with community members to educate them on their options. It is now available for social services staff who want to know how to help clients deal with...

This guide explains what a line of credit is and how to choose a line of credit to suit your borrowing needs. A line of credit is a type of loan that lets you borrow money up to a preset...

This is a detailed guide from the FCAC on how to read your credit report and understand your credit score. Building a good credit history is important for your financial health. Along with millions of other Canadians, you have a credit history that is kept on file by companies called credit...

Your credit report is important for your financial health. It can help you get approved for credit cards and other loans. It can also affect your ability to rent housing or get hired for a job. Protect your credit report by checking carefully for errors and signs of identity theft. You have the...

Credit cards can be useful and convenient. But if you aren’t careful about how you use them, you can put yourself on a path to serious financial trouble. You could build up debt that might take you years to pay off or damage your credit...

Credit cards can be very convenient, but it’s important to keep in mind that when you apply for a credit card, you are entering into a contract. Like any contract, it is legally binding and gives each party certain rights and responsibilities. There are rules that federally regulated financial...

You have the right to see your own credit report. And there are ways you can order it for free. It is a record of your past and present use of credit cards and loans. Mobile phone and Internet accounts may also be included, even though they are not credit accounts. It includes details about your...

This short guide explains the process of getting debt management help from a credit counselling agency. Credit counselling agencies provide a range of services for people in financial difficulty. One of the most common services they offer is help with finding the best strategy to pay off your debt...

Considering the increasing indebtedness of young people, the ubiquitous advertising of credit, their possible ignorance of how credit operates, etc., this article examines young people’s perception of credit, the factors that have moulded that perception, and the latter’s consequences on credit...

BDSC firms are using varied forms of non-traditional data—from mobile call data records and bill payments to Internet browsing patterns and social media behaviour—to create a new way to assess consumer risk, determine the creditworthiness of previously “invisible” consumers, and...

This guide informs on credit and debt in Canada, including types of credit, credit cards, dealing with collection agencies, and tips for managing...

Canadian households are now deeper in debt than at any time since Statistics Canada began collecting debtor data in 1961. Debt, payment delinquency, and bankruptcy are increasingly a part of the lives of the young, the socioeconomically marginalized, and renters. This In-Brief explores the...

Debt buyers, specialized debt-collection companies, purchase defaulted consumer debt from creditors such as credit card companies for pennies on the dollar. Debt buyers then attempt to collect the debt, often by suing borrowers in court. State and federal officials should continue to strengthen the...

Millions of small-dollar credit borrowers are set back by predatory lending practices. There is a critical need for high-quality products designed for both borrower success and lender profitability. This report shares an analysis of practices of 16 installment lenders that have adopted some of the...

For unbanked and underbanked borrowers, ncome supports, budgeting guidance, and additional savings will not entirely fill the need that credit satisfies. First, well-structured credit can support a household’s ability to save. Second, building a credit history is a critical financial asset in its...

This Guide seeks to define characteristics of a high- quality small-dollar credit product. It does not assume, however, that credit is the answer for every consumer. When people who face a chronic income shortfall or who already have debts they cannot manage use credit to meet their basic needs,...

Banks and credit unions can and should be doing much more to support consumer credit building – and, importantly, they can do so in ways that align their own success with the success of their customers. CFSI has identified a number of initiatives that financial institutions can implement over the...

The Center for Financial Services Innovation (CFSI), with support from the Ford Foundation, has undertaken extensive consumer research to examine the needs, decisions, and experiences of SDC consumers, with the goal of promoting the development of high quality SDC solutions. As CFSI defines it,...

The challenges that credit invisibles and consumers with unscored records face in accessing credit markets has generated considerable attention from researchers and industry participants. Despite all of this attention, very little is known about the number or characteristics of credit invisibles...