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Never Lend Money To Gisele Bundchen

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by Felix Salmon
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Mar 12 2008 12:00am EDT

Never Lend Money to Gisele Bundchen!

Enrichetta Ravina studied 11,957 loan requests from 7,321 borrowers and concluded:

Borrowers whose appearance is rated above average are 1.41 percentage points more likely to get a loan and, given a loan, pay 81 basis points less than an average-looking borrower with the same credentials. Black borrowers pay between 139 and 146 basis points more than otherwise similar White borrowers... Personal characteristics are not, all else equal, significantly related to subsequent delinquency rates - with the exception of beauty, which is associated with substantially higher delinquency rates.

Incidentally, this is true of countries as well as individuals.

(Via Dillow)

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