Factors Affecting Credit Card Uses

In the current world of economics, macroeconomic issues have been on the rise and as such, several articles have addressed them at length. In this context, Tunali0131 (2010), has tried to address the issue of the use of credit cards as they are related to Turkey's economy. In this sense, the last 20 years have witnessed an increased tendency to use credit cards both by sellers and consumers. The use of credit cards has been over the time been used by both upper and middle income earners. In this case, credit cards are issued by banks and as a result, there has been an increased competition amongst banks in the aspect of issuing the cards.

Tunali0131 (2010) has explored the factors affecting the use of credit card by Turkish households. In this milleu, 1300 surveys were used in the city of Istanbul with questions being directed to the heads of the various heads of the households. In the same line of thought, the resulting data that was obtained was analyzed using Tobit model so as to determine the factors affecting the use of credit card. From a general point of view, Tunali0131 (2010) established that the use of credit cards in Turkey was affected in various dimensions; social, personal and economic factors in the larger perspective.

In essence, the use of credit cards is common in terms of business transactions, borrowing of money and as well in business dealings. It actually helps one to eliminate the burden of having to carry cash. According to the results from the 1300 surveys carried, age is a determinant factor of the number of cards used by a person with a positive effect among individuals of the age bracket of 35-44 years an 45-54 years of age. There was also a relationship that was realized between the use of credit cards and the lack of social security. The number of cards use was also affected by low monthly income in a positive way.  It has been established that total annual income along with daily income had positive impact on the use of credit cards.