Hu, Luojia; Huang, Xing; Simonov, Andrei - 2020
We study how the existence of cutoffs in credit scores affects the behavior of homebuyers. Borrowers are more likely to … purchase houses after their credit scores cross over a cutoff to qualify them for a higher credit score bin. However, the … credit accounts of these individuals (crossover group) are more likely to become delinquent within four years following home …