- This paper provides evidence on the determinants of household credit, formal and informal, in both urban and rural areas in Colombia. We also study the factors that affect the likelihood that a household is in arrears. Results show that the probability that a household has credit is positively related to marital status (married), education, income, household size, home ownership, and labor market participation. Estimates indicate that income and education are positively correlated with the probability of having a formal loan, and negatively related to the likelihood of having informal credit. Finally, household income, credit usage, and unexpected events increase the probability of credit default.