Can Credit Cards with Access to Complimentary Credit Score Information Benefit Consumers and Lenders?

21 Pages Posted: 2 Oct 2015

See all articles by Vyacheslav Mikhed

Vyacheslav Mikhed

Federal Reserve Bank of Philadelphia

Date Written: September 2015

Abstract

Barclaycard U.S. is one of a growing number of banks offering cardholders free access to their FICO® Credit Scores with credit card products. On November 19, 2014, Paul Wilmore of Barclaycard U.S. presented Barclays’ rationale for offering this feature and provided his perspective on its development. He also discussed how consumers responded to this feature in terms of their spending, repayment behavior, and lifespan and intensity of their relationship with the bank. According to Wilmore, program participation is correlated with increased card spending, decreased credit utilization and delinquency, increased digital engagement, and lower cardholder attrition.

Keywords: Credit Reports, Risk Scores, Credit Cards, Consumer Lending, Information, Credit Performance

JEL Classification: D12, D14, G21

Suggested Citation

Mikhed, Vyacheslav, Can Credit Cards with Access to Complimentary Credit Score Information Benefit Consumers and Lenders? (September 2015). FRB of Philadelphia - Payment Cards Center Discussion Paper No. 15-03. Available at SSRN: https://ssrn.com/abstract=2668179 or http://dx.doi.org/10.2139/ssrn.2668179

Vyacheslav Mikhed (Contact Author)

Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

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