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What Are The Advantages And Disadvantages Of Credit Cards

2251 Words10 Pages

STATUS AND USE TOWARDS CREDIT CARDS PRACTCES AMONG GEN Y IN AEON SHAH ALAM.

CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION
Credit cards usages are becoming integral parts of life for the most generation Y either students or working adults in Malaysia. Some use credit cards for convenient and some use for prestige. There are advantages and some disadvantages to have credit cards. Credit card is just a tool to smooth financial lifestyle. But if the credit card usages are not handled carefully it would bring to losses and debt. (HSBC Malaysia) So a quantitative research on credit card practices is conducting in order to reveal the credit card usages among generation Y at area Shah Alam.

1.2 BACKGROUND OF STUDY The usage of credit cards is starts in Malaysia on 1970. The total number of credit cards under circulation during that time is just 20,000. Consumers feel very proud to have credit cards on that time because it is a symbol of prestige. But this facts change when got changes in eligibility criteria to have a credit cards. So it automatically increase the number of credit card holders. (Ahmed, Ismail, Sohail, Tabsh, & Alias, 2010). According to Bank Negara Malaysia statement, the number of credit card in circulation until 2015 is 8.6 million. This figure increased from 8.07 million on 2012. That is around 6.57%. The credit card industry in Malaysia is fast growing and unique because it operates in a dual banking system where the conventional and Islamic banking systems.

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