Financial Illiteracy and customer credit history

Abstract Purpose: We study how financial illiteracy affects the probability of a derogatory mark on the customer’s credit history. Design/methodology/approach: We use the National Survey on Financial Inclusion in Brazil together with information on financial instrument usage and spending provided by the head of the household. To estimate the impact of financial illiteracy on the probability of a derogatory mark we use a logistic model to compute the odds ratio. Findings: Our main result is that financially illiterate individuals have between 57% and 143% more chance of having a derogatory mark. We find that age, income, expenses, and retirement positively affect the probability of a derogatory mark, while marriage has a negative impact. Gender does not have any impact over the probability of derogatory mark. Originality/value: The study uses a new proxy for financial illiteracy and correlates it to the investment and debt decisions of a family using a unique dataset.

摘要

研究目的：本文探讨金融知识匮乏（financial illiteracy）对消费者信用历史上出现不良记录（derogatory mark on customer’s credit history）的概率的影响。

研究设计/方法与途径：本文采用巴西全国金融包容调查数据，并结合户主提供的金融工具使用与支出信息。为评估金融知识匮乏对不良信用记录发生概率的影响，本文使用逻辑斯蒂模型（logistic model）计算比值比（odds ratio）。

研究结果：本文核心研究结果显示，金融知识匮乏群体出现不良信用记录的概率较普通群体高出57%至143%。此外，年龄、收入、支出状况与退休状态均会正向提升不良信用记录的发生概率，而婚姻状况则会产生负向影响；性别对该概率无显著影响。

研究原创性与价值：本研究采用全新的金融知识匮乏代理变量，并结合独有数据集，将金融知识匮乏与家庭的投资及债务决策相关联。