Discussion Paper

Can credit cards with access to complimentary credit score information benefit consumers and lenders?

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;

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Consumer Finance Institute discussion papers

Publication Date: 2015-09-30

Number: 15-3