@article{37926e0eff614e22a0921060213e5d15,
title = "Does knowing your fico score change financial behavior? Evidence from a field experiment with student loan borrowers",
abstract = "One in five consumer credit accounts incurs late fees each quarter. Evidence on the efficacy of regulations to improve behavior through enhanced disclosure of financial product attributes is mixed. We test a novel form of disclosure that provides borrowers with a personalized measure of their creditworthiness. In a field experiment with over 400,000 student loan borrowers, treatment group members received communications about the availability of their FICO Score. The intervention significantly reduced late payments and increased borrowers{\textquoteright} FICO Scores. Survey data show treatment group members were less likely to overestimate their FICO Scores, suggesting the intervention may correct for overoptimism.",
author = "Tatiana Homonoff and Rourke O{\textquoteright}brien and Sussman, {Abigail B.}",
note = "Funding Information: We gratefully acknowledge Marianne Bertrand, Anat Bracha, Michael Collins, Jacob Goldin, Sam Hartzmark, Emir Kamenica, Neale Mahoney, Sanjog Misra, Devin Pope, Justin Sydnor, Oleg Urminsky, George Wu, and several seminar participants for conversations that have greatly improved the quality of this project. We also thank Jennifer Chellew, Monica Milone, Ryan Corey, Annat Shrabstein, and Marie O Malley from Sallie Mae, as well as Joanne Gaskin and Jenelle Dito from FICO for their assistance throughout the project. Nicholas Herzog provided excellent research assistance. All remaining errors are our own. This work was supported by the True North Communications Inc. Faculty Research Funds at the University of Chicago Booth School of Business. Publisher Copyright: {\textcopyright} 2019 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.",
year = "2021",
month = may,
day = "14",
doi = "10.1162/rest_a_00888",
language = "English (US)",
volume = "103",
pages = "236--250",
journal = "Review of Economics and Statistics",
issn = "0034-6535",
publisher = "MIT Press Journals",
number = "2",
}