Recent study indicated a drop in credit card usage - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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

Recent study indicated a drop in credit card usage
The content is accurate at the time of publication and is subject to change.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Chase Freedom Categories for January Unveiled

Posted: December 17, 2018

With the Chase Freedom credit people earn 5% cash back in three bonus areas per quarter, and they have just announced the offerings for the next quarter. Cardholders will earn enhanced rewards when they pull up to the gas station, make ... Continue reading
Get 100,000 Bonus Points with the Radisson Rewards Premier Visa Signature

Posted: December 14, 2018

If you have been thinking about getting the Radisson Rewards Premier Visa Signature credit card, now might be the time to take another look because it now comes with 100,000 bonus points. This is a limited time offer, which is in play from ... Continue reading
Minor League Baseball and Allegiant Airlines Partner Up

Posted: December 13, 2018

Allegiant Airline and Minor League Baseball have inked a deal paving the way for a credit card partnership, one giving fans a credit card that reflects their fandom in terms of rewards whether they are traveling or catching a game. When ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!