New Study Finds Link Between Your Face and Your Credit Score

24 Mar New Study Finds Link Between Your Face and Your Credit Score

Jefferson Duarte, a Rice University finance professor, designed a study to analyze more than 12,000 loan applications submitted to Prosper.com, a internet lending company.  Prosper.com matches borrowers with a group of lenders they have assembled.  Applicants submit all the standard financial information plus a picture of themselves.

Dr. Duarte had twenty-five people review the photos and rate applicants based on the appearance of trustworthiness.  He defines trustworthiness as someone’s willingess to abide by a contract.  He found that the more people trust you, the lower the interest rate the person will be charged.  In his study he discovered that one bank loaned a person $6,000 at 6.7 percent and another person the same amount of money but at 24 percent interest.  You can find the study at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1343275

 

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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