Credit Card Behavior

A study on the behavior of student credit card users with respect to default, penalty and loss of credit card

Abstract

The research was on credit card usage behavior among students. The study was conducted online, by sending a questioner to around 150 peoples who stay in Mumbai. The study was conducted to understand credit card behavior among students means how many credit card does each student has, what are their opinion regarding awareness level of credit card, what types of credit card does they use, what is their monthly income, who much is their credit card monthly bill etc. The study focus on the credit card usage behavior among all age group of students. Data was analyzed on bases of the responses we got. We got 121 responses out of

Student believes that having credit card in their opinion makes one spend more than what they have. Student thinks that credit card is useful and convenient, but should be used in emergency only. Student believes that before owing a credit card, Credit Card Company should arrange some program that gives information about credit card and how they work (i.e. interest rate etc.).Most of the student use credit card to purchase books, laptop, to pay tuition fees, and also use for vehicle maintenance and to pay internet bill. Student also use credit card for online purchase, store purchase, reward points and also for discount. Behavior of the student might be improved if they are made aware of the numerous cost of credit card misuse. Now a day’s credit card has become way of life for students. To find out credit card usage behavior, we did a research in which we first send a questioner form to around 150 peoples out of which we got 121 responses. Out of 121 responses, 40 responses are of student. From 40 students around 14 students have at least one credit card. Two students out of 40 students have lost their credit card

Primary data were collected through sending a questioner to around 150 people in Mumbai which include student also. The survey was limited to people of Mumbai. A total 121 responses were analyzed for this research. Secondary data has been collected through various like internet, Research already publish on different site.

Literature review:

Credit card usage behavior among student and financial knowledge by Cliff .a. Robb (8 may 2011).The credit card availability has raised concern that how the student can use those card that have negative consequence which are mismanagement and credit card abuse. They used a sample around 1354 students from a major southern university. The result was that the knowledge was a significant factor in credit card decision of student. Student who has higher financial knowledge is more likely to engage in more responsible credit card use.

Jing j Xiao, Franzsika E, Noring and Joan G Anderson in his paper college’s student attitude towards credit card. They constructed an instrument to measure college student attitude towards credit card. They also run a chi square to indicate the factors associated with difference in attitude towards credit card use comprising three component affective, cognitive, behavioral included number of credit card owned, number of all card owned, time of using credit