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Creditworthiness may be linked to looks
A credit score can tell a lender a lot about a prospective borrower, but so can the borrower's looks, a new study says. People who are perceived to be trustworthy are more likely to have a higher credit score and pay lower interest rates on loans, and are less likely to default, according to the study by Rice University in Houston, Texas. Even when hard facts such as credit scores are available, people rely on an assessment of trustworthiness to decide whether to make a loan.
"It turns out that if you look trustworthy, you're more likely to get a loan," said Jefferson Duarte, a professor of real estate finance at Rice University, one of the study's authors.
Tue Mar 17, 2009
Reuters