Credit Access Helps US Families Cover $400 Shock Bill in Study

Cash may be king but it isn’t the only indicator of financial resilience, according to research drawing on the bank records from 5.9 million American households.

Expanded access to short-term credit may provide low-income households with a crucial lifeline when faced with unexpected expenses, according to a report by JPMorganChase Institute released Tuesday.

The research looked at households’ cash balances, income, spending, and credit access in December 2023. It showed 92% were able to cover a $400 surprise bill with some combination of cash on hand, disposable income, and short-term credit.

Among low-income families, more than three quarters could cover ...