Consumer rationality/irrationality and financial literacy in the credit card market: Implications from an integrative review

2014 ◽  
Vol 19 (1) ◽  
pp. 29-42 ◽  
Author(s):  
Na Shen
Keyword(s):  
Financial Literacy ◽  
Credit Card ◽  
Integrative Review ◽  
Credit Card Market

scholarly journals Credit Card Rates and Consumer Switch: New Evidence

2016 ◽  
Vol 8 (12) ◽  
pp. 95
Author(s):  
Omar A. Abdelrahman
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Credit Card ◽  
Percent Level ◽  
Empirical Finding ◽  
Credit Cards ◽  
Credit Card Market ◽  
The Ohio State University ◽  
Using Data ◽  
Level Of Significance

This paper investigates the underlying determinants of consumer’s choices regarding switching credit-card balances. To estimate the likelihood that consumers switch credit cards, two logit models are estimated. Using data from the Consumer Finance Monthly (CFM) of The Ohio State University, the author finds that at the conventional 5 percent level of significance, the following variables have significance: old interest rate, new interest rate, duration of the introductory rate, balances, number of credit cards, homeownership, and age. As expected, interest rates, balances, the duration of new introductory offer rates, and homeownership have the greatest influence on why or why not people switch credit cards. The findings are consistent with the view that consumers make rational decisions in the credit card market, challenging Ausubel’s (1991) argument of credit card consumer irrationality and Calem and Mester’s (1995) empirical finding that credit card rates are sticky because consumers are irresponsive to rate cuts.

scholarly journals The Issue and Risk Analysis of the Credit Card

2021 ◽  
pp. 615-617
Author(s):  
Dhartee Ghawale ◽  
Pratiksha Gharde ◽  
Ashvini Bagade ◽  
N. Lakshmanan ◽  
Prof. Omkar Dudhbure
Keyword(s):  
Risk Analysis ◽  
Credit Card ◽  
Credit Rating ◽  
Rapid Development ◽  
Rating System ◽  
Credit Card Market

In order to systematically evaluate credit card risk, opportunities for specific action and activity are used on paper. Based on the rapid development of the local credit card market, the current risks of the application and the issue of the credit card are discussed. With a credit card application using a credit card, a situation may arise where a customer may wish to repay the loan on time. In addition, the credit rating system, marketing and approval method, credit card overpayment, incentive orders and penalties, use management and other related angles are considered to solve the credit card risk problem.

On the Use of Intelligent Systems for the Modelling of Financial Literacy Parameters

2009 ◽  
Vol 2 (4) ◽  
pp. 17-35
Author(s):  
H. Tawfik ◽  
R. Huang ◽  
M. Samy ◽  
A.K. Nagar
Keyword(s):  
Financial Literacy ◽  
Educational Level ◽  
Credit Card ◽  
Intelligent Systems ◽  
Input Parameter ◽  
Support Vector ◽  
Financial Decisions ◽  
Relative Contribution ◽  
Main Determinants ◽  
And Gender

Research has shown that more young people lack good financial literacy and make poor financial decisions. Financial literacy is not only important for individuals, but also for families, financial institutions, and the entire economy. In this paper, artificial neural networks (ANNs) and support vector machines (SVMs) are used as tools to model the financial literacy levels of young university students across Australia and three Western European countries. The goal was to ascertain the students’ level of financial knowledge in relation to the use of credit card and loan facilities based on a number of input parameters such as age, gender and educational level. Sensitivity analysis is applied to determine the relative contribution of each input parameter to the overall financial literacy model. The experiments show that ANNs and SVMs exhibit promising results and capabilities for effectively modeling financial literacy. Our findings indicate that the main determinants of young people’s level of financial literacy include educational level, length of employment, age, and credit card status – in terms of the use of credit card facilities, and gender, living status and credit card status – in terms of the use of loan facilities.

scholarly journals Factors Effecting Towards Personal Bankruptcy among Residents: Case Study in Klang Valley, Malaysia

2016 ◽  
Vol 6 (3) ◽  
pp. 98 ◽  
Author(s):  
Mahiswaran Selvanathan ◽  
Uma Devi Krisnan ◽  
Wong Chui Wen
Keyword(s):  
Financial Literacy ◽  
Credit Card ◽  
Pearson Correlation ◽  
Simple Random Sampling ◽  
Money Management ◽  
Personal Bankruptcy ◽  
Notable Increase ◽  
Klang Valley ◽  
The Government

In Malaysia, there is a notable increase in the number of bankruptcy cases. The personal bankruptcy trend has become one of the major concern to the government. The purpose of this research is to study the factors lead to personal bankruptcy. This research tested the few factors effect on personal bankruptcy based on Klang Valley residents. The research used a quantitative approach and data was gathered from survey questionnaire. The questionnaire measurement quantify the respondent’s response with the help of five point Likert scale. Respondents was designated to respond on the questionnaire by simple random sampling techniques. Data collected was analyzed using Pearson correlation coefficient and multiple regression analysis. The data has been presented in the form of tables. Relationship that were assessed; credit card debts, money management, financial literacy and non-performing loan effects towards personal bankruptcy. The finding shows that there are positive relationship between money management, financial literacy and non-performing loan. 

Credit Card Satisfaction and Financial Literacy: Evidence from an Emerging Market Economy

2012 ◽  
Vol 48 (sup5) ◽  
pp. 103-115 ◽  
Author(s):  
G. Gulsun Akin ◽  
Ahmet Faruk Aysan ◽  
Serap Ozcelik ◽  
Levent Yildiran
Keyword(s):  
Market Economy ◽  
Financial Literacy ◽  
Credit Card ◽  
Emerging Market
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