The CARD Act and Young Borrowers: The Effects and the Affected

Peter Debbaut, Andra Ghent and Marianna Kudlyak

Journal of Money, Credit and Banking, 2016, vol. 48, issue 7, 1495-1513

Abstract: We study a new law that restricts credit to individuals under age 21. We first use a difference‐in‐difference approach to estimate the effect of the law on credit card availability. Following the passage of the law, individuals under age 21 are 8 percentage points (15%) less likely to have a credit card, have fewer cards, and, conditional on having a card at all, are 35% more likely to have a cosigned card. We then use data from before the passage of the law to identify the characteristics of those individuals most likely to be affected by the Act.

Date: 2016
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https://doi.org/10.1111/jmcb.12340

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Persistent link: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:48:y:2016:i:7:p:1495-1513

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