How Market Position Shapes Credit Card Interest Rates

The Quick Take
Why is it that two borrowers who look much alike can be offered very different rates when applying for a credit card? In a recent paper , we address this question by examining how the rate offered changes when the lender’s funding cost falls. Data on 14 million newly issued cards show that when a lender's funding costs decline, the lender passes less of that decline on to the offer rate when it ho
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