Correlates of Credit Card Adoption in Urban China

Abstract

Analysis of data from the 2008 Survey of Chinese Consumer Finance and Investor Education indicated that 30.0 % of the sample households held at least one credit card. Significant factors associated with the probability that an urban Chinese individual would hold a credit card included income, age, education, occupation, and awareness of credit card risks, default consequences, the credit system, and that late payments increase interest.

Credit Card Usage Pattern in Ozamiz City, Philippines

“…In the study from Singapore, credit cards can provide lower income households a line of credit that is easier to access than other potential sources of credit (Sharpe et al, 2012). However, several studies from different countries suggest that card ownership is positively related to income (Themba & Tumedi, 2012;Abdul-Muhmin & Umar, 2007;Kaynak & Harcar, 2001;Chan, 1997;Heck, 1987;Adcock et al, 1977).…”

“…The findings are consistent with the results from Botswana (Themba & Tumedi, 2012), Singapore (Ramayah et al, 2002) and USA (Hamilton & Khan, 2001). Sharpe et al (2012), in a study conducted in China, explained further that older cardholders had less awareness of the consequences of defaulting on payments. In contrast, a study from India (Khare et al, 2012) showed that younger cardholders were the ones who had the tendency to revolve while the findings from Saudi Arabia (Abdul-Muhmin & Umar, 2007) showed that age was not an influential variable when it came to determining the tendency to revolve.…”

“…However, other literature revealed otherwise. Highly educated cardholders owned more credit cards, used credit cards more frequently and spent more using credit cards (Themba & Tumedi, 2012;Sharpe et al, 2012;Abdul-Muhmin & Umar, 2007;Kaynak & Harcar, 2001;Chan, 1997;Canner et al, 1992;Danes & Hira, 1990;Heck, 1987;Adcock et al, 1977). The study from Saudi Arabia (Abdul-Muhmin & Umar, 2007) and India (Khare et al, 2012) showed that highly educated cardholders are less likely to revolve but the study from Botswana (Themba & Tumedi, 2012) showed otherwise.…”

“…These are largely undertaken in the middle and high-income countries such as India, USA, Malaysia, Singapore, Saudi Arabia, China, Turkey, London and Hongkong (Khare et al, 2012;Hancock et al, 2013;Wang et al, 2011;Gan et al, 2008;Abdul-Muhmin & Umar, 2007;Ramayah et al, 2002;Sharpe et al, 2012;Kaynak & Harcar, 2001;Hamilton & Khan, 2001;Chan, 1997). These studies indicate that the credit card usage pattern of consumers, which includes the type of commodities paid through credit card, number of credit cards owned, frequency of usage, monthly credit card expense, payment practice and attitude towards credit card, is influenced by the socioeconomic status of the cardholders.…”

“…For example, Choi and DeVaney (1995) reported that credit card ownership was not influenced by income level while studies of Danes and Hira (1990), Sharpe et al (2012), Themba and Tumedi (2012), Abdul-Muhmin and Umar (2007), Kaynak and Harcar (2001), Chan (1997), Heck (1987) and Adcock (1977) found that income level was influential.…”