Those who exert more patience and are willing to wait for larger financial payouts down the line have credit scores an average of 30 points higher than those who are less patient, according to a study to be published in the journal Psychological Science next month.
Time Moneyland’s Martha White reports that Stephan Meier and Charles Sprenger, professors at Columbia and Stanford, respectively, found that people who need instant gratification are also more likely to pay their credit cards late or skip a payment altogether.
Impatient consumers want to feel the immediate benefit of cash in the bank, which outweighs the benefit of not paying interest or late fees.
Meier and Sprenger based their findings on a survey of 437 people they asked a variety of questions, noting how much money it took before the respondents’ impatience kicked in and they opted for a smaller amount of money faster. The study was controlled for income, total debt, and demographic differences.
Read the whole story: Business Insider