Professional Documents
Culture Documents
A Research Paper
Present to
The Faculty of Senior High School
ST. AUGUSTINE SCHOOL OF NURSING
Lagro, Quezon City
By:
Accepted and approved in partial fulfillment of the requirements for the strand of ABM
(Accountancy, Business and Management).
ii
ABSTRACT
No. of pages: 35
Summary
This study sought to find out the convenience of credit card usage among the
residents of Neo Vista Homes Subdivision, Caloocan City. The respondents were randomly
selected in the terms of gender and age as long as they were using credit card. The
iii
sampling used in this was randomly sampling. The respondents were limited to one
done by the researchers in order to find out the convenience of using credit card in Neo
Vista Homes Subdivision, Caloocan City. Also, in this study utilized all statistical data
Conclusions
Based on the findings of the study the following conclusions were drawn:
1. The residents of Neo Vista Homes Subdivision, Caloocan City used credit card in terms
2. The convenience of credit card affected the decisions of residents in Neo Vista Homes
3. Credit card usage had significant convenience among the residents of Neo Vista Homes
Recommendations
1. The researchers recommended that credit card should be used by people who are
knowledgeable about the important and conditions of credit card so that day may
avoid the excessive use of it and may also have control in using credit card.
and important of credit card so that the students may have the idea of the proper
iv
3. The researchers recommended to the future researchers to study on the negative and
positive effects of having credit card so that it may help them become responsible in
using it.
4. The researchers recommended to all the students to know the important of the
proper usage of credit card in case they decide to avail and use it in the future.
v
Acknowledgement
First and foremost, praises and thanks to the God, the Almighty, for His showers of
I would like to express my deep and sincere gratitude to my research professor, Ms.
Kriska B. Dela Cruz, LPT we are very grateful for your patience in helping and guiding us.
The time you have giving us and especially to your contribution, assistance support you have
shown us. All of this has a big part in the back of the creation and success of this timeless role
because of you; we cannot do it and finish well in just a short period of time.
We would also like to thank the panelist, especially Karla Flores, RN, MAN, for
investigating and assisting us to change the wrong we have done in research and Chizellyn
Villarosa, RN, LPT and Mr. John Lerry C. Ampo, Marketing and Business Finance
instructors, because they shared their knowledge with us and made it possible to carry out our
research. We are thankful because they help us to gather enough data for use in developing
this study.
To the residents of Neo vista Homes, for their cooperation and support. Above all else, the
deepest thanks to the researchers’ parents for their continuous support whom provides
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TABLE OF CONTENTS
Acknowledgement --------------------------------------------------------------- vi
List of Tables
Table 1 ------------------------------------------------------------------- 16
Table 2 ------------------------------------------------------------------- 17
Table 3 ------------------------------------------------------------------------- 18
List of Figure
Paradigm ------------------------------------------------------------------------- 4
Bibliography ---------------------------------------------------------------------- x
Appendices
Introduction ------------------------------------------------------------------- 1
vii
Theoretical Framework ------------------------------------------------------------- 3
Paradigm ------------------------------------------------------------------- 4
Assumption ------------------------------------------------------------------- 5
viii
CHAPTER IV: PRESENTATION ANALYSIS AND INTERPRETATION OF
DATA
Table 1 ------------------------------------------------------------------------- 16
Table 2 ------------------------------------------------------------------------- 17
Table 3 ------------------------------------------------------------------------- 18
Summary ---------------------------------------------------------------- 19
Conclusions ---------------------------------------------------------------- 19
Recommendations ----------------------------------------------------------- 20
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Chapter I
Introduction
A credit card is a payment card issued to user (cardholders) to enable the cardholder
to pay a merchant for goods and services based on the cardholder`s promise to the card
issuer to pay them for the amounts plus the other agreed charges. The card issuer (usually a
bank) creates a revolving and grants a line of credit to the cardholder,Edward, b. (1887)
from which the cardholder can borrow money for payment to a merchant or as a cash
advance in other word, credit cards combine payment services with extensions of credit.
Complex fee structures in the credit card industry may limit customers` ability to
comparison shop helping to ensure that the industry is not price-competitive and helping to
maximize industry profit. Due to concerns about this, many legislatures have regulated
credit card fees.A credit card is different from a cash card, which requires the balance to be
repaid in full each month. In contrast, credit cards allow the consumer a continuing balance
of dept. subject to interest being charge. A credit card also differs from a cash card, with
can be used like currency by the owner of the card. A credit card differs from a charge card
also in that a credit card typically involves a third-party entity that pays the seller and is
reimbursed by the buyer, where as a charge card simply defers payments by the buyer until
a later date. Credit comes in many different shapes and sizes includingmortgages,
loans,overdrafts and credit cards. In most cases you’ll have to pay an agreed amount back
every month with interest. Whatever credit you choose, it’s important to keep up with your
monthly repayments.
Background of the Study
Jay, M. Taylor, T. (2017) to fully appreciate the modern convenience of the credit
card, simply insert your chip card, pause while it processes, and consider what it replaced.
Prior to plastic, money as a means of exchange for goods and services was cumbersome, if
not outright dangerous. Beginning as far back as 9000 B.C. with cattle and camels,
currency took some truly odd shapes from cowries’ shells, bronze and copper imitation
cowries shells and gold and silver nuggets to Chinese deerskin notes and Native American
stringed wampum beads. Credit cards work to make tremendous revenues to credit card
companies, banks and retail sales. They do not however work the way they used to work
for the customer that temporarily possess them. Many years ago, when credit cards were
invented, and I was young boy they were a means to finance household items considered
necessary. These were things like washing machines and clothes dryers. Credit cards today
have such a high interest that they are no longer attractive to purchase such items. Credit
cards are primarily now seeming to be used to hide and avoid indebtedness. There is
nothing good debt. Americans have been convinced by retail salesmen and the banks that
to have good credit one must have a solid credit account. A solid history means more than
the fact that you have consistently made payments on time without failure. The credit card
companies and the banks evaluate your spending tends, the debt load over time, your
savings history, checking spending history. This personal information is felt by these
institutions because of their unique methods of collection, rather than belonging to the
individual who creates this activity. We chose credit card because it is important to people
who need financial support and it is convenience to people because there is a chance that
2
they need money to buy their needs and giving them a credit card and help them to meet
their needs.
Theoretical Framework
According Sujit Chakravort’s model (20’06), the five main credit card
merchant, the merchant’s financial institution or the acquirer, and the credit card
network—have been condensed to three participants. The issuer, the acquirer, and the
network operator are assumed to be a single agent and referred to as the issuer. This may
not be unrealistic given the history of the credit card industry—when Bank of America
started operating a credit card system in 1958 it served as issuer, acquirer, and network
operator. Each good is sold by a monopolistic merchant and Monopoly rents are
maintained because each good within this continuum is distinct from one another (e.g., car
attention on a world where merchants are small and have no bargaining power to set the
merchant discount rate. Since merchants earn rents, credit cards can be of value if they
increase sales.
As is typically true in actual practice, he assumes that merchants do not charge different
prices to their credit card and cash purchasers. Why merchants do not differentiate between
credit and cash purchases is a difficult question to answer. It may simply be the case that
faced with a higher price for credit purchases, consumers may choose to purchase
elsewhere rather than pay a higher price. For example, in the eighties, some gasoline
retailers gave discounts for cash payments but eventually returned to a policy of uniform
pricing (Barron et al., 1992). In addition, national and state laws have also restricted pricing
policies in the past and some states continue to do so. However, Federal Reserve
Regulation Z allows all merchants to offer discounts for non-credit card purchases. Given
that there is no economic difference between imposing surcharges for credit card purchases
or offering discounts for non-credit card purchases, it seems puzzling that both types of
statutes coexist.
Research Paradigm
Usage
The uniformity of the theory of credit card and the convenience of credit card usage
are important for consumer and the residents of Neovista we are all need a financial
support and to purchase their needs especially in emergency and you need to keep cash on
hand because not all the time you will take your money especially if fragile million due to
evil people because credit card it’s easy to use and easy to carry and you can be secure your
money.
1. How did the residents of Neo Vista Homes Subdivision, Caloocan City use credit
2. Did the convenience of credit card affect the decisions of residents of Neo Vista
3. Did the use of credit card have significant convenience among the residents of Neo
Assumption
The use of credit card had no significant convenience among the residents of Neo
Vista Homes.
Students. This study will help students in gaining understanding about the importance of
credit card. Learn to spend smart and budget right and have an urge to travel because
Researchers. The researchers will gain information about the convenience of credit cards,
This study delimited itself to the population in Neo Vista Homes Subdivision who
were using Credit Cards in purchasing items. This aimed to measure the convenient of
using credit card. It was only limited to the 100 selected residents in Neo Vista Homes
Subdivision Caloocan City. This study will be conducted in the (year, 2018-2019).
Definition of Term
Bank. Is a financial institution licensed to receive deposit and make place, and related in
the study.
Convenience. The state of being able to proceed with something with little effort or
Credit card. A small plastic card issued by a bank, business, etc., allowing the holder to
purchase goods or services on credit and this is the main topic in research.
6
Financial. The finance or financial situation of organization or individual in the resident of
Loans. Things that is borrowed, especially a sum of money that is expected to paid back
with interest, that was the first move to apply the resident to get credit card.
Neo vista homes. A breath taking delight of a residential haven in highly urbanized city
Residents. A person who lives somewhere permanently or on a long-term basis and living
Savings. The money has saved especially through a bank or official scheme, that was
7
Chapter II
This chapter presented the concise and concrete explanation of both foreign and local
Foreign Studies
Sarma E. J., (1989)10, used the ‘Lifestyle’ concept to understand the users of credit card
psycho graphically in 1989. He concluded that “the users of credit cards in contrast to
non-users exhibit a contemporary state of mind and reject conservative traditional concepts,
can indicate that the type of purchases that can be made on credit cards could be viewed as
‘luxury or necessity’ based on the lifestyles rather than broadly classifying them for all
groups. Therefore, the traditional orientation towards cash which can be a major barrier to
the use of credit cards must be tackled by card marketing banks through better marketing”.
Yeo (1990)11, in his Ph. D. thesis looks at identifying household credit card
choice and usage behavior of cardholders. It was found that several factors were significant
in determining the choice between the bank and retail credit cards in USA. These were the
level of family income, the household age, the number of bank card holdings, the number
of store card holding the related interest rate, the relative membership fees and the card
preference.
Yeo Jung Sang (1992)12, in his thesis had focused on the attitude and
behavior of credit card holders. The researcher had used dichotomous multi nominal logic
to analyze the demographic factors like age, education level, size of the house hold, income
level, number of bank card holdings, store card holdings, relative interest rate, and relative.
It’s all about the behavior of using credit cards by the convenience necessity, based
on the lifestyles rather than broadly classifying them for all groups. Therefore, the
traditional orientation towards cash which can be a major barrier to the use of credit cards
must be tackled.
Local Studies
Nestor V. Tan (1976) - In his research had focused on the impact of credit cards
on spending pattern to study the conceptual aspects and the evolution of credit cards in
Philippines. Interview schedule was given to three hundred credit card holders. Simple
Percentage, F- test were used to analyze the collected data. It was found out that almost all
the respondents irrespective of their income levels had agreed that their purchasing power
had increased after they had begun to use their credit cards.
Jaime Augusto zobel de ayala (1990) - in her Ph. D. thesis analyses and the
results of the credit cards services. The study based on the perception of selected credit
cardholders of various issuing banks in Quezon city. This research finding and conclusion
based on the hypothesis that single cardholders are less satisfied than multiple cardholders.
Further the results also stated that there are cardholders holding cards both in Philippines
and foreign banks are more aware of the services and experienced their greater satisfaction.
9
Frederick Y. Dy in (1995) - perception of cardholders and member establishments
towards plastic money in Philippines is a study that examines the perspective of users as
well as member establishments has towards the use of plastic money. It focuses on some
vital aspects like challenges experienced by customers and bankers. Value attribution It
also analyses the current status and trends of collecting money in Philippines.
cardholders and members. The perspective of users when they’re start using it their eager
to spend more and the effect of this was shortage of income or salary.
Foreign Literature
Zhao, Zhao, and Song. I (2009), credit card lending is risky for card issuers because
the loans are usually not secured by any assets. Furthermore, unlike traditional loans, which
are discrete, typically involve an individual analysis of credit risk, and have a specific
maturity date, credit cards invite a continuous flow of borrowing with limited subsequent
checks of financial status after the initial issuance of the card. It is so important to card
issuers to identify consumer risk types as early stage to prevent risky consumers from
borrowing too much before default appears and customize their marketing strategies to
Besides, credit cards also serve as an open-ended, easily available credit source (Lee
and Kwon, 2002). When the credit cards consumers use the credit cards as mode of
financing when they compete with bank loans and others forms of financing (Brito and
Hartley, 1995). Credits cards allow their customers to borrow their credit limit without
transaction costs. By this way, it can attract many consumers to pay high interest on
10
outstanding credit card balances, rather than taking the time to apply for a loan with a
lower interest rate. As a result, credit cards account for a substantial and growing share of
In this information is to how the credit card is riskyfor card issuers because the
loans are usually not secured by any assets and how the consumers use the credit cards as
mode of financing when they compete with bank loans and others forms of financing.
Local Literature
Rea Cu (2016) “Financial Cards and Payments in the Philippines,” the use of
financial cards has been further driven by the issuance of credit cards or fleet cards that are
tailored to a specific need.“As more consumers rely on financial cards for their purchases
and transactions, the use of financial cards has been further driven by the launch of cards
that address a specific need and by the expansion of card networks,” the report said.
It pointed out that due to the efficiency and convenience brought about by the use
of financial cards, Filipino consumers are now steering more toward using credit cards
rather than cash. The efforts of industry players in marketing credit cards and fleet cards to
provide better financial services also contribute to the increase in the number of users of
financial cards.
Lester yee (2014) Credit card debt is by far one of the biggest problems of many Filipinos.
According to statistics compiled by the Bangko Sentral ng Pilipinas, total credit card debt
in the Philippine banking system has totaled Php157.394 billion, with Php15.141 billion of
11
these classified as non-performing. These standards are very alarming, and many online
sites have given tips on how to reduce or eliminate credit card debt. However, it is
important to understand credit cards and how they work, to be able to realize the true value
A credit card represents the right to instantly borrow from a bank up to any amount
(up to the credit limit) to pay for any kind of transaction. Thus, a credit card has many
benefits. First, a credit card allows you to map out your transactions. You can do groceries
and pay for utilities on any day, and just settle the full amount before the due date. For
instance, if your salary is coming on May 30, and the credit card bill is due on June 5, you
can make purchases on May 17 even without having the cash on hand. All you need to do
is to swipe your credit card and pay for the balance after when you receive your salary.
In this study letting the risk of credit card in all of the Filipinos to use the
efficiency and convenience brought about by the use of financial cards and as more consumers
rely on financial cards for their purchases and transactions, The use of it has been further
driven by the launch of cards that address a specific need and by the expansion of card
networks.
Chapter III
research explained how the necessary data and information to address the research
objectives and questions was collected, presented and analyzed, reason and justification for
the research design, population of the study, sources of data, sampling technique, research
instrument, data gathering procedure and statistical treatment used were given.
Research Design
In this study a descriptive design was used. The purpose of this design is to describe
of how convenient the use of credit card and how does convenience affect the decisions of
The respondents of the study were 506 residents of Neo Vista Homes Subdivision
Sampling Method
This research study used purposive sampling because it was a sampling technique
in which researcher relied on his or her own judgment when choosing members of
population to participate in the study (Black, K., 2010). Thus, the researchers choose their
respondents, 100 participants from Neovista Homes who have credit cards. This includes
two persons per house who used credit cards, or as many as possible in one household.
13
Research Instrument
In this study a survey questionnaire used in the collection of data. The researchers
employed a self-made questionnaire to gather data of the study. The part 1 is How do you
use credit card in terms of convenience? The Part 2 is Does the convenience affect your
decisions in using credit card among the residents in Neovista Homes, Caloocan City.
The questionnaire must be subset to presenting or dry run. The researchers utilized
Researchers are not members of sample group to validate the preparation of the survey
instruments. The ten (10) trial respondents were being requested to comment or react on
the prepared survey tools. After this process all comments and reaction from the trial
respondents were collected and were incorporated in finalizing survey tool. Hence, the data
Sources of Data
The study used 2 kinds of data, the primary and the secondary data. The residents in
NeoVista Homes who were the respondents of the study are the source of Primary data.
The data will come through the use of survey questionnaire and the second is from the
internet.
The researchers must provide the questionnaire to residents of Neo Vista Homes
Subdivision because of their involvement in this study. The handling of questionnaire will
Statistical Treatment
To interpret the date effectively, the researchers will employ the following
statistical treatment. Percentage- this employ to determine the frequency counts and
the percent sign, "%", or the abbreviations "pct.", sometimes the abbreviation "pc" is also
used.
Formula:
The subscript “c” are the degrees of freedom. “O” is your observed value and E is
your expected value. It’s very rare that you’ll want to actually use this formula to find a
critical chi-square value by hand. The summation symbol means that you’ll have to
perform a calculation for every single data item in your data set.
Chi-squared test – is used to determine whether there is a significant difference between the
Chapter IV
15
PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA
Table 1
The Numbers of Convenience Affect the Decisions in Using Credit Card
Statement Frequency Percentage
Yes 52 52%
No 48 48%
Table 1 shows that 52% of respondents of Neo Vista Homes Subdivision Caloocan
City answered Yes that convenient of using credit card affect their decisions and 40%
Table 4 shows that the statement #4 got the highest weighted mean count of 4.82
and the interpretation of highly convenient. Second is the statement #3 with a 4.52
weighted mean count with its interpretation of highly convenient. Third is the statement #1
with a 4.48 weighted mean count along with its interpretation of highly convenient. Fourth
is the statement of #2 with the weighted mean of 4.18 and an interpretation of highly
convenient. and the statement #5 with the weighted mean count of 4.48 with an
Interpretation of highly convenient then the total of weighted average mean is 4.48 with the
Table 3
Summary of Values and Interpretation of the Significance of Credit Card Usage
Among the Residents of Neo Vista Homes
Table 3 shows the summary of values on the Chi-square test to the convenience of
credit card usage among the residents of Neo Vista Homes Subdivision Caloocan City.
This study employed the significant level of 0.05 interpreting the computed p-value of
0.05. Based credit card usage had significant effects to the residents Neo Vista Homes
Summary
This study sought to find out the convenience of credit card usage among the residents of
Neo Vista Homes Subdivision, Caloocan City. The respondents were randomly selected in
the terms of gender and age as long as they were using credit card. The sampling used in
this was randomly sampling. The respondents was limited to one hundred only from Neo
done by the researchers in order to find out the convenience of using credit card in Neo
Vista Homes Subdivision, Caloocan City. Also in this study utilized all statistical data
Conclusions
Based on the findings of the study the following conclusions were drawn:
1. The residents of Neo Vista Homes Subdivision, Caloocan City used credit card in
2. The convenience of credit card affected the decisions of residents in Neo Vista
Recommendations
1. The researchers recommended that credit card should be used by people who are 19
knowledgeable about the importants and conditions of credit card so that day may
avoid the excessive use of it and may also have control in using credit card.
and importants of credit card so that the students may have the idea of the proper
3. The researchers recommended to the future researchers to study on the negative and
positive effects of having credit card so that it may help them become responsible in
using it.
4. The researchers recommended to all the students to know the importants of the
proper usage of credit card in case they decide to avail and use it in the future.
BIBLIOGRAPHY
A. Websites 20
Black, K. (2010) “Business Statistics: Contemporary Decision Making” 6th edition, John
Wiley & Sons
B. (n.d) discounts for cash in retail gasoline marketing april. 10, 2019, from
http://citesecrx.ist.psu.edu/viewdoc/summary?doi=10.1.1.1.194.6311.
B. (n.d). the journal of law and economis. Retrieved april 10, 2019, from
http://www.journal.uchicago.edu/doi/10.1086/467049
J.M. (2019, March 11). The history of credit cards (timeline&major events). Retrieve 2019,
from http://www.credit cards.com/credit cards.php
JohnsHopkins.
https://www.statisticshowto.datasciencecentral.com/probability-and-statistics/c
hi-square/
com/wiki/jo_kwon
Sang.Y.J.(n.d).banking, credit cards, home loans and auto loans. Retrieved april 10, 2019 from
http://www.bankofamerica.com
Sang.Y.J.(n.d).banking, credit cards, home loans and auto loans. Retrieved april 10, 2019
fromhttp://www.bankofamerica.com
B. Books
Oxford English Dictionary (3rd ed.). Oxford University Press. September 2005.
Smith, D.E. (1958) [1951]. History of Mathematics. Courier Dover Publications. pp. 247–
C. PDF
SM. (2003) prentice hall economics. Principles in action, 2003…retrieve 2019 from
https://yny2agujyb.files.words press
word.com/2014/07/prentice-hall-economics-principles-in-action.pdf.
Z. (n.d). curriculum vitae yaozhao research interest education. Retrieved april 10, 2019, from
http: www.business.rutgers.edu/sites/default/files/documents/cx-yao-zhao.pdf
Xi
APPENDIX A
March 5, 2019
Dear Ma’am,
Warm regards,
Noted:
Kriska B. Dela Cruz, LPT
Research Adviser
xii
APPENDIX B
The Convenience of credit card usage among the residents of Neo Vista Homes
Subdivision, Caloocan City.
Gender: __ Age: __
A. How do you use credit card in terms of convenience? Please respond a check (√) in
the answer box that corresponds to your response.
Statement 4. 3. 2. 1.
Highly Convenient Less Unconvenient
convenient convenient
I use credit
card because
it is easy to
use.
I use credit
card because
it can help me
to secure
money.
I use credit
card because
it can help me
budget
expense each
month.
I use credit
card because
as in times of
emergency
cases.
I use credit
card because I
don`t need to
carry
cash/money
when I need
to buy
something.
Xiii
B. Does the convenience affect your decisions in using credit card? (choose your answer
by putting a check mark).
Yes NO
xiv