The Financial Credit Profile of Low-Income Families Seeking Assets
Individual Development Account (IDA) participants need strong credit histories to access affordable credit for their IDA asset purchase. Using a convenience sample of IDA participants (N = 188) recruited from the St. Louis, MO area, this study presents credit profile data addressing utilization...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
New Prairie Press
2012-01-01
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| Series: | Journal of Financial Therapy |
| Subjects: | |
| Online Access: | http://jftonline.org/journals/jft/article/view/1512 |
| _version_ | 1811281524858814464 |
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| author | Patrick Kelley Jamie Curley Julie Birkenmaier |
| author_facet | Patrick Kelley Jamie Curley Julie Birkenmaier |
| author_sort | Patrick Kelley |
| collection | DOAJ |
| description | Individual Development Account (IDA) participants need strong credit histories to access affordable credit for their IDA asset purchase. Using a convenience sample of IDA participants (N = 188) recruited from the St. Louis, MO area, this study presents credit profile data addressing utilization of alternative and mainstream financial services, amount of debt carried, and elements needed to improve credit. This study presents data on the credit profile of IDA participants (N = 188). Compared to national IDA participants, participants in this study had higher incomes, were more educated, and had a higher rate of being “banked.” The sample was not overburdened with their monthly debt. However, participants also utilize higher-cost alternative financial services, such as payday lenders and pawnshops, at similar rates to other low-income families and are beginning their IDA programs with low credit scores and poor credit history. Participant needs for credit assistance is discussed, and practice, policy, and research implications are provided. |
| first_indexed | 2024-04-13T01:35:11Z |
| format | Article |
| id | doaj.art-5215f5f80ef24e1d8822afa4fb93c1cc |
| institution | Directory Open Access Journal |
| issn | 1945-7774 1944-9771 |
| language | English |
| last_indexed | 2024-04-13T01:35:11Z |
| publishDate | 2012-01-01 |
| publisher | New Prairie Press |
| record_format | Article |
| series | Journal of Financial Therapy |
| spelling | doaj.art-5215f5f80ef24e1d8822afa4fb93c1cc2022-12-22T03:08:24ZengNew Prairie PressJournal of Financial Therapy1945-77741944-97712012-01-012210.4148/jft.v2i2.1512The Financial Credit Profile of Low-Income Families Seeking AssetsPatrick KelleyJamie CurleyJulie BirkenmaierIndividual Development Account (IDA) participants need strong credit histories to access affordable credit for their IDA asset purchase. Using a convenience sample of IDA participants (N = 188) recruited from the St. Louis, MO area, this study presents credit profile data addressing utilization of alternative and mainstream financial services, amount of debt carried, and elements needed to improve credit. This study presents data on the credit profile of IDA participants (N = 188). Compared to national IDA participants, participants in this study had higher incomes, were more educated, and had a higher rate of being “banked.” The sample was not overburdened with their monthly debt. However, participants also utilize higher-cost alternative financial services, such as payday lenders and pawnshops, at similar rates to other low-income families and are beginning their IDA programs with low credit scores and poor credit history. Participant needs for credit assistance is discussed, and practice, policy, and research implications are provided.http://jftonline.org/journals/jft/article/view/1512creditasset developmentIndividual Development Accounts |
| spellingShingle | Patrick Kelley Jamie Curley Julie Birkenmaier The Financial Credit Profile of Low-Income Families Seeking Assets Journal of Financial Therapy credit asset development Individual Development Accounts |
| title | The Financial Credit Profile of Low-Income Families Seeking Assets |
| title_full | The Financial Credit Profile of Low-Income Families Seeking Assets |
| title_fullStr | The Financial Credit Profile of Low-Income Families Seeking Assets |
| title_full_unstemmed | The Financial Credit Profile of Low-Income Families Seeking Assets |
| title_short | The Financial Credit Profile of Low-Income Families Seeking Assets |
| title_sort | financial credit profile of low income families seeking assets |
| topic | credit asset development Individual Development Accounts |
| url | http://jftonline.org/journals/jft/article/view/1512 |
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