What's in a Score? Differences in Consumers' Credit Knowledge Using OLS and Quantile Regressions

Abstract

Credit literacy depends, in part, on understanding credit reports and scores. The US Government Accountability Office (GAO) conducted a study in 2004 to assess consumers' knowledge of credit reports, credit scores, and the dispute resolution process. This study uses the GAO data and estimates a series of OLS and quantile regressions to identify specific subgroups of the population that could benefit from more targeted consumer policies and financial education. The findings from this research have important implications for consumer educators, financial professionals, and policymakers, especially with respect to national strategies designed to improve consumers' financial well-being.