Degree Name

Master of Science

Graduate Program

Agribusiness Economics

Advisor

Sanders, Dwight R.

Abstract

AN ABSTRACT OF THE RESEARCH PAPER OF

ABBY KERN, for the Master of Science degree in AGRIBUSINESS ECONOMICS, presented on APRIL 20th, 2017 at Southern Illinois University Carbondale.

TITLE: CREDIT SCORE ANALYSIS

MAJOR PROFESSOR: Dr. Dwight R. Sanders

A person’s credit score defines their credit and lending ability throughout their life. Building a credit score takes time and multiple steps. However, there are not a lot of studies done that help define the effects different variables have on credit scores and the effects different variables have on interest rates. This study explores the effects of age, income, and debt to income ratio have on a person’s credit score. It explores the effects credit score, amount of the loan, term of the loan and loan type (agriculture, real-estate, and consumer) have on the interest rate a lender offers a customer. This report will be helpful for those who are trying to improve their credit score as well as for lenders who want to know what influences interest rates. Using the results, consumers can focus on the main factors that influence their credit score. By doing so, they can work on those areas to improve their score. Also, professional banks can focus on the main variables that impact the interest rates they offer. This shows the lending field what actually determines the consumer interest rates.

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