IDEAS home Printed from https://ideas.repec.org/a/fip/fedgrb/y2003ifebp47-73nv.89no.2.html
   My bibliography  Save this article

An overview of consumer data and credit reporting

Author

Listed:
  • Robert B. Avery
  • Paul S. Calem
  • Glenn B. Canner

Abstract

For some time, the Board of Governors of the Federal Reserve System has sought to obtain more detailed and timely information on the debt status, loan payment behavior, and overall credit quality of U.S. consumers. For decades, information of this type has been gathered by credit reporting companies primarily to assist creditors in evaluating the credit quality of current and prospective customers. To evaluate the potential usefulness of these data, the Federal Reserve Board engaged one of the three national consumer reporting companies to supply the credit records, without personal identifying information, of a nationally representative sample of individuals. This article describes the way the credit reporting companies compile and report their data and gives background on the regulatory structure governing these activities. This description is followed by a detailed look at the information collected in credit reports. Key aspects of the data that may be incomplete, duplicative, or ambiguous as they apply to credit evaluation are highlighted in the analysis. The article concludes with a discussion of steps that might be taken to address some of the issues identified. ; Also identified as FRB Philadelphia Payment Cards Center Discussion Paper 03-03

Suggested Citation

  • Robert B. Avery & Paul S. Calem & Glenn B. Canner, 2003. "An overview of consumer data and credit reporting," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Feb, pages 47-73.
  • Handle: RePEc:fip:fedgrb:y:2003:i:feb:p:47-73:n:v.89no.2
    as

    Download full text from publisher

    File URL: http://www.federalreserve.gov/pubs/bulletin/2003/0203lead.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rajdeep Sengupta & Geetesh Bhardwaj, 2015. "Credit Scoring and Loan Default," International Review of Finance, International Review of Finance Ltd., vol. 15(2), pages 139-167, June.
    2. Barakova, Irina & Bostic, Raphael W. & Calem, Paul S. & Wachter, Susan M., 2003. "Does credit quality matter for homeownership?," Journal of Housing Economics, Elsevier, vol. 12(4), pages 318-336, December.
    3. Sumit Agarwal & Souphala Chomsisengphet & Lawrence Mielnicki, 2008. "Do Forbearance Plans Help Mitigate Credit Card Losses?," Journal of Family and Economic Issues, Springer, vol. 29(2), pages 191-201, June.
    4. Amy Finkelstein & Sarah Taubman & Bill Wright & Mira Bernstein & Jonathan Gruber & Joseph P. Newhouse & Heidi Allen & Katherine Baicker, 2012. "The Oregon Health Insurance Experiment: Evidence from the First Year," The Quarterly Journal of Economics, Oxford University Press, vol. 127(3), pages 1057-1106.
    5. Khandani, Amir E. & Kim, Adlar J. & Lo, Andrew W., 2010. "Consumer credit-risk models via machine-learning algorithms," Journal of Banking & Finance, Elsevier, vol. 34(11), pages 2767-2787, November.
    6. Jonathan Spader, 2010. "Beyond Disparate Impact: Risk-based Pricing and Disparity in Consumer Credit History Scores," The Review of Black Political Economy, Springer;National Economic Association, vol. 37(2), pages 61-78, June.
    7. Sengupta, Rajdeep & Bhardwaj, Geetesh, 2015. "Credit scoring and loan default," Research Working Paper RWP 15-2, Federal Reserve Bank of Kansas City.
    8. Avery, Robert B. & Calem, Paul S. & Canner, Glenn B., 2004. "Consumer credit scoring: Do situational circumstances matter?," Journal of Banking & Finance, Elsevier, vol. 28(4), pages 835-856, April.
    9. Meier, Stephan & Sprenger, Charles D., 2013. "Discounting financial literacy: Time preferences and participation in financial education programs," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 159-174.
    10. Lukasz A. Drozd & Ricardo Serrano-Padial, 2017. "Modeling the Revolving Revolution: The Debt Collection Channel," American Economic Review, American Economic Association, vol. 107(3), pages 897-930, March.
    11. Dobbie, Will & Goldsmith-Pinkham, Paul & Mahoney, Neale & Song, Jae, 2016. "Bad credit, no problem? Credit and labor market consequences of bad credit reports," Staff Reports 795, Federal Reserve Bank of New York, revised 01 May 2017.
    12. Julie Carlson & Leemore Dafny & Beth Freeborn & Pauline Ippolito & Brett Wendling, 2013. "Economics at the FTC: Physician Acquisitions, Standard Essential Patents, and Accuracy of Credit Reporting," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(4), pages 303-326, December.
    13. Aliprantis, Dionissi & Hartley, Daniel, 2015. "Blowing it up and knocking it down: The local and city-wide effects of demolishing high concentration public housing on crime," Journal of Urban Economics, Elsevier, vol. 88(C), pages 67-81.
    14. Stephan Meier & Charles Sprenger, 2007. "Impatience and credit behavior: evidence from a field experiment," Working Papers 07-3, Federal Reserve Bank of Boston.
    15. Carlos Dobkin & Amy Finkelstein & Raymond Kluender & Matthew J. Notowidigdo, 2016. "The Economic Consequences of Hospital Admissions," NBER Working Papers 22288, National Bureau of Economic Research, Inc.
    16. Tal Gross & Matthew J. Notowidigdo & Jialan Wang, 2016. "The Marginal Propensity to Consume Over the Business Cycle," NBER Working Papers 22518, National Bureau of Economic Research, Inc.
    17. Andersson, Fredrik & Mayock, Tom, 2015. "The microdynamics of household credit use through a boom–bust cycle," Journal of Housing Economics, Elsevier, vol. 27(C), pages 22-36.
    18. L. Douglas Smith & Michael Staten & Thomas Eyssell & Maureen Karig & Beth A. Freeborn & Andrea Golden, 2013. "Accuracy of Information Maintained by US Credit Bureaus: Frequency of Errors and Effects on Consumers' Credit Scores," Journal of Consumer Affairs, Wiley Blackwell, vol. 47(3), pages 588-601, November.
    19. Kenneth P. Brevoort & Robert B. Avery & Glenn B. Canner, 2013. "Credit Where None Is Due? Authorized-User Account Status and Piggybacking Credit," Journal of Consumer Affairs, Wiley Blackwell, vol. 47(3), pages 518-547, November.
    20. Calem, Paul S. & Gordy, Michael B. & Mester, Loretta J., 2006. "Switching costs and adverse selection in the market for credit cards: New evidence," Journal of Banking & Finance, Elsevier, vol. 30(6), pages 1653-1685, June.
    21. Ashlyn Aiko Nelson, 2010. "Credit scores, race, and residential sorting," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(1), pages 39-68.

    More about this item

    Keywords

    Credit cards ; Consumer behavior;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedgrb:y:2003:i:feb:p:47-73:n:v.89no.2. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Franz Osorio). General contact details of provider: http://edirc.repec.org/data/frbgvus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.