Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Recent study indicated a drop in credit card usage

Recent study indicated a drop in credit card usage

By
Add to Favorites:
Recent study indicated a drop in credit card usage

According to the study conducted by Javelin Strategy and Research, consumers are not using credit cards as much they used to in the past. As per the results of a survey conducted in November 2009, 56% of the consumers have admitted to using the card in the last month which is down from 87% during the same period in 2007. This 56% has been the lowest since the start of the survey conducted by Javelin in its series of annual surveys since the last six years. The figures according to Javelin were expected to drop to approximately 45% during this year’s survey.


Javelin’s president and founder, James Van Dyke, has said that the decline is a calculated move by the consumers, where they have consciously moved away from credit cards and have opted for other alternative modes of payment, such as debit cards, as well as reloadable prepaid cards. The speeding up also seems to have happened due to the weak economy.


As of such, the usage of credit cards had gone down; due to the recent recession the drop in usage is more noticeable. This trend seems to be more prevalent among the card users in the 18-24 age groups according to Javelin, where they seem to prefer much more real-time and immediate payment options. The credit card usage in general, seems to be more prevalent in the higher-income groups, where they prefer to use their cards more in order to obtain rewards while paying off their balances regularly every month. The logic here seems to be that the more a person earns, the less likely they will give up using the card.


The usage patterns according to Javelin seem to have positive implications on customers, as issuers may try to spur the usage of credit cards due bearing in mind the new regulations with debit cards. The positive side to this would be that issuers will now try other new strategies such as rewards, lower fees, reduced rates etc., to readjust their strategies to attract customers to spend more while using the credit card.


As per the survey done by Javelin, the results are not actually comparable with the purchase volume data because the results are actually based on consumer feedback with regard to their purchase patterns. Around 4,000 customers were asked about their recent usage and different payment options.

Add to Favorites:

Related News:

Frugal Fashionistas Rejoice: Century 21 and Alliance Data Launch New Credit Card

By Elizabeth Nelson, Posted: September 26, 2016

New York City-based bargain department store Century 21 is partnering with Alliance Data to launch a new credit card program. A favorite of fashionable bargain-hunters, Century 21 operates 10 stores across the greater New York City area ... Continue reading
Talking About Money Equals Happiness

By Dar Dowling, Posted: September 23, 2016

Love and money are the two biggies in life and relationships, and now, according to a new study by TD Bank, couples who talk about money have a higher happiness factor than those that don't. Continue reading
Credit Card Limits Up, Up and Away

By Dar Dowling, Posted: September 22, 2016

Credit card limits had an upswing during the first six months of this year, according to a new study by Experian, with credit card limits in both the subprime and deep subprime credit range equaling $6.4 billion – the largest amount in the ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit