Credit Cardholder: Convenience User or Credit Revolver?

The credit card is a double-edged sword. Credit facilities offered by a credit card, which provide liquidity for unforeseen circumstances, can also tempt its holder to overspend. This paper investigates the factors that distinguish a cardholder who uses the credit card as a convenient payment tool from a cardholder who uses the credit card as a credit instrument. It is found that socio-economic variables are significant in profiling the type of credit card user. Credit education is also found to be important in shaping a responsible usage of credit cards.