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Credit Card Averters and Amassers: Evidence from Malaysia *
Author(s) -
Loke Yiing Jia,
Yen Steven T.,
Tan Andrew K. G.
Publication year - 2011
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/j.1467-8381.2011.02068.x
Subject(s) - credit card , credit card interest , chargeback , loan , business , issuer , atm card , credit history , competition (biology) , credit reference , economics , actuarial science , financial system , finance , payment , credit risk , ecology , biology
Various socio‐demographic characteristics determine credit card ownership. Based on a hurdle‐count data model, the decision on card ownership is separated into two parts: whether to own one, and if so, how many cards to hold. Results indicate that age, race, education, income, number of loan commitments, household size and current account ownership have clear influences on the probability of ownership and quantity of card holdings. Common perception that easy access to credit via credit cards makes multiple card holdings enticing is not validated as results show that easy access to credit was not a significant driver of the number of cards owned. Card ownership and quantity of card holdings have implications for market competition among credit card issuers.