Dissertation

³MSC International Business and management´

Topic:

³The difference and similarities of Consumer behavior of India and UK towards usage of Credit Cards´

Submitted To:

Dr. Juanling Huang By:
Rohit Sharma

Birmingham City University

ABSTRACT This piece of systematic study has been done on the area of consumer behaviour towards the use of credit card as a medium of purchasing power. This study includes a comparative study of Birmingham based consumers and New Delhi (India) based consumers. In order to achieve the objectives of this piece of work researcher has done extensive literature review and chosen sample from both the countries towards conducting primary research. Researcher has collected data from the identified samples and analysed that data to get the conclusion and relate the same with the established objectives. Conclusion of this project is very interesting. Researcher found that it is the good and bad experience of the consumers that influencing consumer behavior that leads to usage and non usage of the credit card. But in India this outcome is completely different. Most of the consumer are falling in the same category, that is their choice of using and non using of credit card is depending on the good and bad experience of the consumer with the service provider but there are some factor which seems equal influence to the consumer behavior of Indian consumers that is the influence of their family members and overall their family culture.

ACKNOWLEDGEMENT I would foremost like to place on record my deepest regards, gratitude and appreciation to my supervisor in the research work Dr. Juanling Huang, who have been a driving force behind the completion of this project. She has been a great source of inspiration and learning, guiding me smoothly throughout this period.

Although there was drastic affect of recession in many parts of the world. There are various pros and cons in use of Credit Cards. card holders enjoy the fun of shopping and making expenditures without cash payments. Plastic money holds a wider place in everyone¶s life. Many people fear using credit cards because of high interest rates to be paid at nonpayment of the credit cards bills. The use of plastic money (Credit/Debit/ATM cards) has made life easy and comfortable. It is easy to carry and simple to use but on other side of the coin it has many negative effects in respect to which there have been huge default ratio of credit cards and of course one of the major reason of recession in the US. Credit cards basically offer the most flexible form of short term borrowings and repayment terms available on the high street. with expansion of new industries and globalization there are many sectors which have flourished other then Production and Manufacturing units. Use of credit card is of great ease while using them at the time of travelling or purchase of some expensive item at one point for which customer might not be carrying hard cash in pocket. As students prefer to use ATM/DEBIT card for their day to day expenditures whereas business men prefer to use Credit Cards as the common mode of expenditure. . The use of plastic money varies from individual to individual. Secondly it does not let make a hold on person¶s expenditure list. Many consumers regard them safer then use of cash. In this competitive world. as customers do not feel hard to pay through credit cards as compared to paying Hard cash. There has been outstanding improvement in the financial sector all over the world. With use of Plastic money. In today¶s era.INTRODUCTION Credit cards are convenient way to pay for all kind of products. The use of credit cards is increasing rapidly all over the world but percentage of consumers varies in different countries according to the consumer usage behavior. still the financial sector has regained its position by upcoming Technology and debt covers.

The UK is made up of 4 countries.000 villages in India lack banking services. Scandinavian Vikings and the Normans all invaded and settled in the UK a thousand years or more ago. The banking sector is held back by low levels of per capita GDP. India is included in large domestic markets and there is dramatic rise in domestic demand.018. ³Throughout history. which include land: 2. Population of India is the second highest in the world. 2010). Central bank of India is showing positive attitude towards stable policy and encouraging commercials to introduce new products.000 of those by 2015(Chibber.263 sq km.1% from 140 million issued a year earlier ³(Chibber.193 sq km water: 314. the Romans. UK has people all around the world. and is considered one the most developed country on this world. UK is also one of those countries where people enjoy their basic human rights. for example logistics involve in running the bank operations.173. many different races and cultures have had an influence on the UK and consequently played a role in creating the diverse society UK is living today. There are other problems involve are too much dependency on papers for example cheques. ³Some 600. The central bank has ordered commercial and regional banks to bring financial services to at least 400. 2010). Banking sector in India have to face some problems of logistics. up 32. There is lack of links between Indian banks and the global financial system .108. Indian financial institutions issued 185 million debit cards as of the end of April.India and its banking sector: India Is consisted on Area of total: 3. Currently banking sector of India is facing some difficulties for example increasing number of loans. Reserve Bank of India data show. UK is one of those countries which have low poverty level.287.973. Selection of UK: Uk is multicultural country with 61 million people. and is set to be a global growth outperformer Indian economy is showing stability from number of years and is among countries have high growth rate. and UK Government is working for basic human right in other countries like Pakistan and Afghanistan. More .070 sq km with the population of 1. Economy of India is going good. Germanic tribes such as the Angles and Saxons.

To identify the impact of cultural difference on credit cards usage. large numbers of South Asians. 2. AIM & OBJECTIVES / RESEARCH QUESTIONS / HYPOTHESIS This project is based on credit cards and its usage.The behavior of these consumers towards the acceptance and negligence of credit cards has been studied. 2009). West Indians. South Africans and others have come to live in the UK's towns and cities´ (FCO. Australians. This study is based on factors which affect the behaviour of consumers in these categories towards usage of credit cards . Africans.recently. Suggestions on the base of findings. Various kinds of cultural values and norms has been studied which relates to the credit cards usage in both the categories and countries. Aim: The aim of this research is to explore the consumer behavior on usage of credit card as a mode of expenditure in India and UK. Objectives: 1. 3. . to improve the usage of credit cards. To review and critically analyze the consumer behavior of India and UK towards usage of credit cards as mode of expenditure. To identify various reasons that affects the usage/Non usage of credit cards in India and UK 4. The project has been undertaken to bring in lime light the usage of credit cards between Birmingham (UK) based and New Delhi (India) based consumers.

Consumer behavior is an important expects of any business success. What are the factors that affect usage and non usage of credit card in India and UK? 2.Research Questions: 1. Consumer behavior is more important for organizations operating in different cultures. and capture more markets. The main obstacles they feel in operating in different countries are difference of culture. company¶s works to maximize their profits. A lot of companies are already operating in different parts of world. what is the difference in preference of usage of credit card in the consumers of New Delhi (India) based and consumers of Birmingham (UK)? 3. . Selection of Industry and product: Banking industry is one of those industries which are globally recognized. Key strategies for profit saving companies use are Cost saving and getting more specialization on key competencies aspects. Indian banking industry is somehow influenced by UK banking industry. norms values and different environment. Justification of the Topic Organizations expansion is key point for any organization in this world. Credit card is considered as a global product and will be a good selection In order to understand the clear picture of cultural impacts on business operating in different areas of world with same product. and is directly related to culture of any society. What are the possible cultural and other difference effecting the usage of credit cards.

Structure of Dissertation: This piece of research project has been presented in following order. Introduction chapter Literature review Research method Analysis and discussion Conclusion and recommendations Bibliography and Appendix. .

Chapter 2 Literature review Background Information: In our day of age. Credit cards companies are now beginning to offer less µfree¶ balance transfers. All these things bring more competition in Banking Sector. It will not be false if we say that electronic banking has changed the shape of the competition and competitive environment. the subject of this experimental study is to determine the factors of how to become a credit card holder and the effective user of the credit cards. Credit card is and important part of electronic banking. 2 out of 5 factors were found to be effective on owning/using credit card. Credit Card usage in UK: A recent survey shows that nearly one in four people in UK use credit cards to pay their household bills and meet day-to-day expenses. 2000). Technology assures the customers to meet their demands and wants at right time and right place. It is clear that the organizations that are unable to keep align themselves with these technological advancement for example electronic banking are faced with the threat of not being able to compete with their competitors and faced the danger of going out of business. The credit card market has grown markedly since the first cards were introduced in the 1950s ([2] Durkin and Price. Credit card is used instead of paper money and is considered as contemporary tool for paying bills. As the credit card services currently focus on customers. This . As the summary of research obtained via factor analysis. determining the effective factors on credit card ownership and usage is crucial for marketing purposes. According to this. there is rapid growth of technological which has not only improve the system and operations but brought a different view of handing different things and situations. introducing the balance transfer fee.

followed by the fact consumers don't like to carry cash (17%) and that cards offers added protection (16%) Credit cards are still the preferred method of online payment probably because any personal information lost to hackers wouldn't empty their bank accounts. implying that the market had become more saturated. (Sarawak. was longitudinal. (1989) identified the characteristics of consumers who held credit cards and established the types of spending for which they used their credit cards. The findings suggested that the growth in number of households which possess credit cards had slowed since 1971. with the average value of a credit card transaction being £60 ( APACS. clothing/shoes and small household goods (sheets. 2006). 2006). In the UK by the end of 2005 there were 70 million credit cards in circulation. According to research from the Halifax. with an average of 2. Almost one in three (29%) say they would feel comfortable going a month or more. towels. When asked to 935 UK consumers.4 cards per person. the top answer was convenience (49%).6 million cardholders. And it is the convenience of paying with a credit card that is most appealing. cash is no longer king. how long they could last with their credit card alone.) but had declined for gasoline/oil payments. with debit cards growing significantly faster than credit cards. When asked "why do you use your credit card?" by Halifax. just like that of Hawes (1988). over 54% of respondents say a week or more. Lindley et al. This study.is a charge levied on balance transfers that you make and are set around 2% of the balance. held by 31. (APACS. This is a growth of 14 million cardholders since 1995 and credit cards are now held by over two-thirds of the UK over-18 population.2008) Credit card usage in India: India's improving economy is helping to drive higher overall payment card usage. dishes. Spending on credit cards in the UK was £125 billion in 2005. etc. new data from India's central . They also found that women use credit card more often as mode of expenditure whereas men use it occasionally Card usage had increased for payments relating to furniture/appliances.

The second group is labeled "convenience users". The current upswing for credit card spending bodes well for card issuers affected by the economic slowdown. The first group is labeled "installment users" because they elect to pay an amount less than their monthly balance and by rolling over part of the debt. . Indian financial institutions issued 20. More recent terminology (see Worthington. They initiated 20. an analyst with Mumbai-based electronic payments research firm Dassler Business Intelligence. the researchers compare cardholders based on their social class. This group considers cards as substitutes for cash and they pay all the balance due within the billing cycle.2 billion) on credit cards. 2005) categories these repayment behaviors as "transistors" (those who repay in full at the end of each billing cycle) and "revolvers" (those who do not repay in full and hence take debt and pay interest on that debt). the central bank says. But still credit card consumers are very less in India as compared to the other big developed or developing nations. Mrinalini Manral.1969) classify credit card holders into two categories. in comparison with lower class cardholders. 31." she says.. "The lack of confidence could also be seen by the decision of RBS to not carry on with ABN Amro's card operations This card-usage upsurge should instill some confidence back into the market.6 billion rupees spent during June 2009.bank show. up 5.9% from 25. have a greater tendency to use cards for the convenience they offer and to pay the whole sum due within the billing period..4 billion rupees (US$1. according to the Reserve Bank of India. In both studies.1 million during the same period a year ago. (By: Ankush Chibber) Credit Card Users: (Mathews and Slocum.2 million transactions.. tells Payments Source." she adds. down 20. based on their "use" of credit cards. up 14% from 48.4 million credit cards as of Dec. They find that upper class cardholders. they consequently pay interest charges. "Card issuers like ICICI have been paring down cards .8% from 19. It is because of uncertainty and insecurity and high debt risk people want to go for debt cards but still Indian consumers in June spent 55.8 million a year earlier.

no matter where ever u are. making them very useful for dealing with unexpected costs and expenses. Some cards even give insurance on large purchases. such as discounts from particular stores or companies. hotels. and car rental agencies).) .In addition to the benefits listed above. If you don't like to carry large amounts of cash with you or if a company doesn't accept cash purchases (for example most airlines. last minute or unexpected costs can be covered without any tension as you are given at least 56 days before paying interest. one can easily track his or her purchases as all purchases made by a credit card listed (online and in bills)as compare to chauqes or cash which involve keeping numerous receipts. some credit cards offer additional benefits. It gives you quick access to finance up to your credit limit at any time u want. putting purchases on a credit card can make buying things easier. Though you should always pay off as much off the credit card balance as possible to avoid interest building up. Credit Card Benefits . Flexible ± You can use credit cards to pay for anything as you need it.Advantages of Credit Card FAST ± Credit cards are quick and easy to use. Purchase Protection± In a way credit card gives protection to your purchases means if u lost your real receipt card statement helps you to prove that that u purchase such things. I¶d you provide employees with a credit card then it becomes much easier to keep track of their purchases. and advise them where purchases may not be considered suitable expenditure by you. and special insurances (like travel or life insurance. bonuses such as free airline miles or travel discounts.

Expenses Control ± If you give a credit card to an employee. so even if you only have £100. While this may seem like 'free money' at the time. or from a Web site) and use your card for large purchase. you may be able to spend up to £500 or £1. which means if you allow interest to accrue. Most credit cards don¶t ask you to pay off your balance each month. the more money you will owe since credit card companies charge you interest each month on the money you have borrowed. The benefits are real and can be helpful as long as you remember your spending limits. but you will have to pay it off -. over the phone. they are able to pay for expenses and other costs instantly. Cost ± Most credit cards have relatively high rates of interest compared to loans and other finance. They may be physically stolen (if you lose your wallet) or someone may steal your credit card number (from a receipt. Credit Card Fraud .000 on your credit card.Like cash.The biggest disadvantage of credit cards is that they encourage people to spend money that they don't have. The good news is that.Most of these benefits are meant to encourage you to charge more money on your credit card. credit card companies start making their money when you can't afford to pay off your charges! Blowing Your Budget -. credit cards can also be stolen. Even if you don't realize your credit card . Whereas if they had to pay cash you could ensure that they do not get their money back for items you consider not to be expenses. unlike cash. if you realize your credit card or number has been stolen and you report it to your credit card company immediately. the cost of using credit cards can be very high. you will not be charged for any purchases that someone else has made.and the longer you wait. Disadvantages of Credit Card Remember.

number has been stolen (sometimes you might not know until you receive your monthly statement). Some . There are several things you can do to prevent credit card fraud: o If you lose your card or wallet. but if they aren't used wisely they can become a huge financial burden. Pay off your balance on all of your credit cards at the end of each month. o o Credit cards can make life easier and be a great tool. The introductory time period is typically anywhere from three months to eighteen months. Payback your charges quickly Find the right deal for yourself Don't spend outside your budget. or no interest rates. report it to your credit card company immediately. If you do decide to use credit cards. These introductory low interest rate offers are intended to attract the individuals to open an account with the financial institution or to transfer their balance to a lower interest rate credit card. most credit card companies don't charge you or only charge a small fee. remember these simple rules: y y y y y y Keep track of all your purchases. Don't loan your credit card to anyone and only give out your credit card information to trusted companies or Web sites. Other promotions offer the introductory rate until the balance is paid off. Don't loan your credit or give out your credit card information to anyone but reliable companies. Check your statement closely at the end of each month to make sure all charges are yours. Evidence on the profitability of credit card arbitrage Many banks offer credit card balance transactions with low. The low interest rate offers generally apply to an introductory period and have an up-front fee. The balances can generally be transferred to pay off another card.

some introductory offers. they may also provide the customer with the potential to earn an arbitrage profit. He finds evidence of adverse selection whereby the least creditworthy individuals receiving the offer are more likely to respond. He . In the event of a missed or late payment. Some of the offers are made on accounts with an annual fee. Banks profit from these offers in several ways. the issuer's ability to charge higher merchant discount fees depends on the number of customers gained when the credit cards are accepted. Chakravorti and To (2002) propose a model that explains interactions between consumers. An arbitrage profit is earned if the interest earned on the money market account exceeds the cost of funds related to the credit card cash transfer. In their model. Finally. relative to the duration of the introductory offer and to the interest rate that applies after the introductory period. Specifically. much higher rate allowing the bank to earn a profit. despite having an enticing appearance. To earn an arbitrage profit. however all merchants' profits are reduced because of inter temporal business stealing across industries.promotions require the cardholder to make a purchase to receive the special rate. Moreover. Low introductory rates serve as a loss leader for the financial institution. The bank earns a transaction fee in these instances. These transaction fees offset the cost of providing the low introductory rate. merchants and card issuers. an individual takes a cash advance against the credit card and deposits the funds received into an FDIC insured money market account. Banks may also earn a profit if the cardholder uses the card for purchases in addition to the cash advance. The paragraph above has directly analyzed arbitrage opportunities available through the use of credit cards. Ausubel (1999) examines preapproved credit card solicitations. Although the credit card offers are intended to attract more credit card business for the bank. the interest rate on the card reverts to the regular. he finds that recipients of credit card solicitations over respond to the introductory interest rate. Each merchant faces a prisoner's dilemma where each independently chooses to accept credit cards. he finds that consumers are at least three times as sensitive to changes in introductory interest rates as compared to dollar-equivalent changes in the post introductory interest rate. are designed in such a way that arbitrage attempts will be unprofitable.

or limited credit history are neglected by credit card companies. They find evidence of a moral hazard where consumers who are paying high interest rates on credit cards. and a track record of responsible credit use. . Kidane and Mukherji (2004) analyze the characteristics of consumers who are targeted and those who are neglected by credit card companies.and high-income households. Sullivan and Worden (1995) consider credit card defaults and bankruptcy. Some people surmise that credit card companies have taken steps to target individuals who are least likely to incur and manage additional credit card debt well.also finds that consumers are two to three times as responsive to changes in the introductory interest rate as compared to dollar-equivalent changes in the duration of the introductory offer. Hagstrom and Wild (1999) argue that credit card debt has become more readily available to lower income households on an absolute basis and has increased at a faster rate than for middle. They argue that these findings provide a plausible explanation for consumers' seeming insensitivity to interest rates charged on credit cards. This measurement provides additional evidence on the motivations of individuals to respond to interest rate changes. Contrary to the spirit of the previous work in this area. Our research will extend this line of literature by precisely measuring arbitrage profits at different interest rate combinations. Stavins (2000) finds evidence that bank credit card companies which extend credit to higher risk borrowers. charge higher interest rates and fees. a clean credit history. recent payment problems. They also find evidence that individuals with fewer financial resources. including Black and Morgan (1999) and Bird. they provide evidence that credit card companies target consumers who have greater financial resources. These results have important implications for our study of credit card arbitrage. They imply that individuals with better credit history and financial resources are more likely to receive credit card offers that position them to execute credit card arbitrage transactions. Several studies. tend toward the aggressive use of credit in an apparent attempt to maximize the value of their option to default. earning higher net revenues.

So credit card companies need to . many popular press articles propose actions that will improve individual credit scores. Some factors that are commonly referenced include the number of credit cards. then the previous marketing strategy will not work. the impact led to higher mortgage rates and down payments.270 to $12. Because the credit function of the cards is not the focus of their work. This approach assumes that individuals pay off the balance of their credit cards each month. In credit card market. This is very simple and easy marketing condition where there will be less cost of advertising and other marketing efforts for the customers. there are vast number of credit card issuers all over the world which leads to high competition in the market. While the precise computation of credit scores is not publicly available. In this situation there should be a separate marketing strategy for the different kind of customers along with different kind of the product.300. Cardline (2006) reports that from 2001 to 2006 the average consumer credit score fell seven points to 675 whereas the average consumer balance on credit card debt increased from $7. Two other factors potentially contributing to these lower credit scores are an increase in late payments and delinquencies and an increase in the credit balance to credit limit ratio. Another situation where product doesn¶t match the objective of every customer. Spencer (2006) describes situations where consumer credit scores have been damaged by fees and fines owed for items like overdue library books and unpaid parking tickets. they do not address the issue of credit scores.A critical issue related to credit card arbitrage is the impact that it might have on a consumer's credit score. King and King (2005) provide a compelling argument for consumers to prefer the use of credit cards over debit cards under the assumption that the credit card balance is paid on time each payment period. and the incidence of late or missed payments. and debit cards. Their work considers the use of credit cards as a substitute for cash. the length of credit history. checks. Credit Card Market When customers in the market are homogeneous then in that case we can offer the product with undifferentiated marketing strategy that implies that product will go after the whole market with one offer. In some cases.

³Market segmentation is the process of classifying customers into groups with different needs.benefits. who want to earn online. rather it is to have customer satisfaction. Market strategies 1 ³With emerging globalization trends in trade and technology. For a small business entrepreneur. When marketing strategy is made to offer right product to the right people that basically requires matching the product with the people. there is a vast growth in financial markets. Credit cards are used by people all over the world and the number of users is growing at an extremely high rate. Right marketing is not simply sale of the product. attitudes or beliefs and personality or lifestyle etc. While doing the segmentation we need to match the above factors along with factors like. But. But advantages of Internet Promotions and affiliate marketing are known to credit card companies. 2 Credit card companies are using affiliate marketing as a strategy and the use of internet has proven to be a success. As per Kotler 1993. Internet offers opportunities to small entrepreneurs. the business house has lot more options to go ahead with. They use conventional marketing tools like advertisements in newspaper. This division of the market is known as Market Segmentation.segment the market according to the need of customers of different age group or different cultures and accordingly try to satisfy their needs. 3 The advent of internet and its spread to the household has been understood by prime financial institutions. magazine. with . to market or promote its product or services through online media can be difficult. market should be segmented in to different groups of people with same requirements . In order to do the exercise of matching the product with the people. characteristics or behaviors´. So market can be segmented based on the demographic factors. They are no longer under pressure and continue to find innovative ways to market their products and services. socio-economic factors and even the geographical factors. Cross-border transactions can happen easily and with use of credit cards. radio and television as well.

The number of Credit cards sold by affiliate marketing over the internet has grown rapidly over the number of years proves the success of such strategies. affiliate marketing strategy generates the highest return on investment if adequately supported by online interment advertisements. Universal Default When you are late with a credit card payment it could affect your other credit card accounts with other companies. depending on the credit card. Even if you have a zero percent promotional rate for balance transfers. . increase your rate. They could lower your credit limit.sufficient information small businesses can get significant advantages from Internet. Credit card policies Arbitration Clause/Agreement Some credit cards have a mandatory arbitration clause. or close your account. The majority of mediation cases are decided in favor of the credit card company. Instead your case will be heard by a mediator.99 percent. In other words. If you are late with your payment your interest rate could increase to 29. However one must fully understand the implications of this strategy. It all depends on that credit card company. This is known as the universal default clause. a late payment will cause it to increase. This clause states that if you have a dispute with the credit card company you waive your right to have your case heard in a court of law. Default Rate A credit card usually has a default rate.

Banks should widely disseminate the contents thereof including through their websites. They have to give you written notification. secure and efficient manner as well as to ensure that the rules. Issue of cards . The following guidelines on credit card operations of banks have been framed based on the recommendations of the Group as also the feedback received from the members of the public. All the credit card issuing banks / NBFCs should implement these guidelines immediately. Guidelines for Implementation 1. When you make your monthly payments the balance with the lowest interest rate gets paid first. card issuing banks and others. which is usually 15 days prior to the change in rate. The bank / NBFC's Fair Practice Code should. regulations. Rate Change A credit card company can change your interest rate any time even if the rate is fixed. The Group has suggested various regulatory measures aimed at encouraging growth of credit cards in a safe. 2005. incorporate the relevant guidelines contained in this circular.Payment Allocation When you make a purchase or a balance transfer they are usually subject to different interest rates. standards and practices of the card issuing banks are in alignment with the best customer practices. at a minimum. In March 2005. the Reserve Bank of India had constituted a Working Group on Regulatory Mechanism for Cards. at the latest by November 30. ³Credit Card Operations of banks Pursuant to the announcement made in the Annual Policy Statement 2004-05. Each bank must have a well documented policy and a Fair Practices Code for credit card operations. the IBA released a Fair Practices Code for credit card operations which could be adopted by banks / NBFCs.

b. may be issued with the clear understanding that the liability will be that of the principal cardholder. Card issuers should quote annualized percentage rates (APR) on card products.e. especially to students and others with no independent financial means. at the time of application. The APR charged and the annual fee should be shown with equal prominence. should be highlighted and advertised/ sent separately to the prospective customer/ customers at all the stages i. the terms and conditions for issue and usage of a credit card should be mentioned in clear and simple language (preferably in English. as given in the Appendix. at the acceptance stage (welcome kit) and in important subsequent communications. The late payment charges. As holding several credit cards enhances the total credit available to any consumer.a. Banks / NBFCs should independently assess the credit risk while issuing cards to persons. (separately for retail purchase and for cash advance. those that are subsidiary to the principal card. 2. d. b. Card issuers should ensure that there is no delay in dispatching bills and the customer has sufficient number of days (at least one fortnight) for making payment before the interest starts getting charged. banks should assess the credit limit for a credit card customer having regard to the limits enjoyed by the cardholder from other banks on the basis of self declaration/ credit information. While issuing cards. during marketing. Interest rates and other charges a. The Most Important Terms and Conditions (MITCs) termed as standard set of conditions. even where DSAs / DMAs or other agents solicit business on their behalf. Add-on cards i. The method of calculation of APR should be given with a couple of examples for better comprehension. including the method of calculation of such charges and the number . The card issuing banks / NBFCs would be solely responsible for fulfillment of all KYC requirements. c. Hindi and the local language) comprehensible to a card user.e. if different).

of days, should be prominently indicated. The manner in which the outstanding unpaid amount will be included for calculation of interest should also be specifically shown with prominence in all monthly statements. Even where the minimum amount indicated to keep the card valid has been paid, it should be indicated in bold letters that the interest will be charged on the amount due after the due date of payment. These aspects may be shown in the Welcome Kit in addition to being shown in the monthly statement. c. The bank / NBFC should not levy any charge that was not explicitly indicated to the credit card holder at the time of issue of the card and getting his / her consent. However, this would not be applicable to charges like service taxes, etc. which may subsequently be levied by the Government or any other statutory authority. d. The terms and conditions for payment of credit card dues, including the minimum payment due, should be stipulated so as to ensure that there is no negative amortization. e. Changes in charges (other than interest) may be made only with prospective effect giving notice of at least one month. If a credit card holder desires to surrender his credit card on account of any change in credit card charges to his disadvantage, he may be permitted to do so without the bank levying any extra charge for such closure.

3. Wrongful billing
a. The card issuing bank / NBFC should ensure that wrong bills are not raised and issued to customers. In case, a customer protests any bill, the bank / NBFC should provide explanation and, if necessary, documentary evidence to the customer within a maximum period of sixty days with a spirit to amicably redress the grievances. b. To obviate frequent complaints of delayed billing, the credit card issuing bank / NBFC may consider providing bills and statements of accounts online, with suitable security built therefore.

4. Use of DSAs / DMAs and other agents

a. When banks / NBFCs outsource the various credit card operations, they have to be extremely careful that the appointment of such service providers does not compromise with the quality of the customer service and the bank / NBFC¶s ability to manage credit, liquidity and operational risks. In the choice of the service provider, the bank / NBFCs have to be guided by the need to ensure confidentiality of the customer¶s records, respect customer privacy, and adhere to fair practices in debt collection. b. The Code of Conduct for Direct Sales Agents (DSAs) formulated by the Indian Banks¶ Association (IBA) could be used by banks / NBFCs in formulating their own codes for the purpose. The bank / NBFC should ensure that the DSAs engaged by them for marketing their credit card products scrupulously adhere to the bank / NBFC¶s own Code of Conduct for credit card operations which should be displayed on the bank / NBFC¶s website and be available easily to any credit card holder. c. The bank / NBFC should have a system of random checks and mystery shopping to ensure that their agents have been properly briefed and trained in order to handle with care and caution their responsibilities, particularly in the aspects included in these guidelines like soliciting customers, hours for calling, privacy of customer information, conveying the correct terms and conditions of the product on offer, etc.

5. Protection of Customer Rights
Customer¶s rights in relation to credit card operations primarily relate to personal privacy, clarity relating to rights and obligations, preservation of customer records, maintaining confidentiality of customer information and fair practices in debt collection. The card issuing bank / NBFC would be responsible as the principal for all acts of omission or commission of their agents (DSAs / DMAs and recovery agents). i. Right to privacy a. Unsolicited cards should not be issued. In case, an unsolicited card is issued and activated without the consent of the recipient and the latter is billed for the same, the card issuing bank / NBFC shall not only reverse the charges forthwith, but also pay a

penalty without demur to the recipient amounting to twice the value of the charges reversed. b. Unsolicited loans or other credit facilities should not be offered to the credit card customers. In case, an unsolicited credit facility is extended without the consent of the recipient and the latter objects to the same, the credit sanctioning bank / NBFC shall not only withdraw the credit limit, but also be liable to pay such penalty as may be considered appropriate. c. The card issuing bank / NBFC should not unilaterally upgrade credit cards and enhance credit limits. Prior consent of the borrower should invariably be taken whenever there are any change/s in terms and conditions. d. The card issuing bank / NBFC should maintain a Do Not Call Registry (DNCR) containing the phone numbers (both cell phones and land phones) of customers as well as non-customers (non-constituents) who have informed the bank / NBFC that they do not wish to receive unsolicited calls / SMS for marketing of its credit card products. The DNCR should be set up within two (2) months from the date of this circular and wide publicity should be given to the arrangement. e. The intimation for including an individual¶s telephone number in the Do Not Call Registry (DNCR) should be facilitated through a website maintained by the bank / NBFC or on the basis of a letter received from such a person addressed to the bank / NBFC. f. The card issuing bank / NBFC should introduce a system whereby the DSAs/ DMAs as well as its Call Centers have to first submit to the bank / NBFC a list of numbers they intend to call for marketing purposes. The bank / NBFC should then refer to the Do Not Call Registry (DNCR) and only those numbers which do not figure in the Registry should be cleared for calling. g. The numbers cleared by the card issuing bank / NBFC for calling should only be accessed. The bank / NBFC would be held responsible if a Do Not Call Number (DNCN) is called on by its DSAs / DMAs or Call Centre/s.

duly approved by their Board. The card issuing bank / NBFC should not reveal any information relating to customers obtained at the time of opening the account or issuing the credit card to any other person or organization without obtaining their specific consent. Before reporting default status of a credit card holder to the Credit Information Bureau of India Ltd. violation of "do not call" code etc. In case of providing information relating to credit history / repayment record of the card holder to a credit information company (specifically authorized by RBI). The disclosure/ release of information. Banks / NBFCs/ their agents should not resort to invasion of privacy viz. In all cases. particularly about the default. as regards the purpose/s for which the information will be used and the organizations with whom the information will be shared. The card issuing bank / NBFC should ensure that the Do Not Call Registry (DNCR) numbers are not passed on to any unauthorised person/s or misused in any manner. persistently bothering the card holders at odd hours. banks / NBFCs may ensure that they adhere to a procedure. including issuing of sufficient notice to such card holder about the intention to report him/ her as defaulter to the Credit Information Company. i. . (ii) Customer confidentiality a. based on specific legal advice that the information being sought from them is not of such nature as will violate the provisions of the laws relating to secrecy in the transactions. Banks / NBFCs should be particularly careful in the case of cards where there are pending disputes. The procedure should also cover the notice period for such reporting as also the period within which such report will be withdrawn in the event the customer settles his dues after having been reported as defaulter. c. b. Banks / NBFCs would be solely responsible for the correctness or otherwise of the data provided for the purpose.. the bank / NBFC may explicitly bring to the notice of the customer that such information is being provided in terms of the Credit Information Companies (Regulation) Act.h. (CIBIL) or any other credit information Company authorized by RBI. Banks / NBFCs should satisfy themselves. should be made only after the dispute is settled as far as possible. 2005.

it is essential that such agents refrain from action that could damage the integrity and reputation of the bank / NBFC and that they observe strict customer confidentiality. The card issuing bank / NBFC should ensure that the DSAs / DMAs do not transfer or misuse any customer information during marketing of credit card products. d. including acts intended to humiliate publicly or intrude the privacy of the credit card holders¶ family members.007 / 2002±03 dated May 5. (iii) Fair Practices in debt collection (a) In the matter of recovery of dues. Leg. banks / NBFCs may ensure that they. 104 /09. No. The disclosure to the DSAs / recovery agents should also be limited to the extent that will enable them to discharge their duties. 2003) as also IBA¶s Code for Collection of dues and repossession of security. Redressal of Grievances . as also their agents. either verbal or physical. (c) Banks / NBFCs / their agents should not resort to intimidation or harassment of any kind. incorporate all the terms of IBA's Code. (b) In particular. in regard to appointment of third party agencies for debt collection. at the minimum.07. against any person in their debt collection efforts. BC. In case banks / NBFCs have their own code for collection of dues it should. 6.a well laid down procedure should be transparently followed. adhere to the extant instructions on Fair Practice Code for lenders (circular DBOD. Personal information provided by the card holder but not required for recovery purposes should not be released by the card issuing bank / NBFC. making threatening and anonymous calls or making false and misleading representations. All letters issued by recovery agents must contain the name and address of a responsible senior officer of the card issuing bank whom the customer can contact at his location. These procedures should also be transparently made known as part of MITCs. referees and friends.

The name and contact number of designated grievance redressal officer of the bank / NBFC should be mentioned on the credit card bills. The designated officer should ensure that genuine grievances of credit card subscribers are redressed promptly without involving delay. c. The card issuing bank / NBFC should constitute Grievance Redressal machinery within the bank / NBFC and give wide publicity about it through electronic and print media. Internal control and monitoring systems With a view to ensuring that the quality of customer service is ensured on an on-going basis in banks / NBFCs. expenses. he will have the option to approach the Office of the concerned Banking Ombudsman for redressal of his grievance/s. If a complainant does not get satisfactory response from the bank / NBFC within a maximum period of thirty (30) days from the date of his lodging the complaint. a time limit of sixty (60) days may be given to the customers for preferring their complaints / grievances. The name. even if the complaints are received on phone. the Standing Committee on Customer Service in each bank / NBFC may review on a monthly basis the credit card operations including reports of defaulters to the CIBIL. 7. There should be a system of acknowledging customers' complaints for follow up. d. Banks / NBFCs should put up detailed quarterly analysis of credit card related complaints to their Top . such as complaint number / docket number. Generally.a. b. The bank / NBFC shall be liable to compensate the complainant for the loss of his time. financial loss as well as for the harassment and mental anguish suffered by him for the fault of the bank and where the grievance has not been redressed in time. designation. address and contact number of important executives as well as the Grievance Redressal Officer of the bank / NBFC may be displayed on the website. credit card related complaints and take measures to improve the services and ensure the orderly growth in the credit card operations. The grievance redressal procedure of the bank / NBFC and the time frame fixed for responding to the complaints should be placed on the bank / NBFC's website.

to stay within your income. budgeting is an alien concept during this and spending can spiral out of control. I am . or other expenses. There are advantages to using the card to finance your expenditure: i) It gives you free access to about a month¶s credit. ii) It gives you the temporary ability to spend beyond your current means. consider cutting intended festive expenses. Research indicates that spending could increase by up to 35% when using a credit card compared with using cash. Use of credit card. 8. the credit card is an obvious attraction. Short term finance With holidays like Christmas or the New Year seeming to come round too quickly. 1949 for violation of any of these guidelines´. does carry with it significant dangers if it is not carefully controlled.Management. Card issuing banks should have in place a suitable monitoring mechanism to randomly check the genuineness of merchant transactions. iii) It allows you to track your expenditure. 1. Spending Plan If your spending is going to exceed your income for the festive month. Here are some key principles to help you guard against running into credit card debt trouble. Right to impose penalty The Reserve Bank of India reserves the right to impose any penalty on a bank / NBFC under the provisions of the Banking Regulation Act. however. To cover the inevitable shortfall in resources. iv) You do not have to carry lots of cash around with you. people often find they have not saved up enough for their celebrations. Moreover.

Unless you are monitoring your spending in both cash and credit. Bridging Finance Use of a credit card is ideally a means of short. Net Worth Credit card debt incurred during the festive season is usually for consumer spending paying for your holiday. and you need to be ready to be ready to reduce other regular expense to accommodate this.assuming you have drawn up your spending plan for that period. This adds to your expenses. This kind of debt adds to your liabilities. 2. If you are not confident that you can pay it off in full. That means settling any debt incurred using your card within days. 3. If you already have credit card debt that is overdue. you need to be prepared for extra costs in interest and penalties associated with extended credit. one of the key indicators to watch is your debt-income ratio. and raises a red flag when you tinker with too much debt.term financing of your operations. you wound do yourself a huge favor by not using a credit card. Debt to Income Ratio Do not forget that use of your credit card adds to your indebtness. This is monthly debt repayment as a percentage of your monthly after-tax income. the use of your credit card can create distortions in the management of your finances. Should you decide to go ahead and use a card. otherwise you run the risk of creating ongoing hard-core debt. It would therefore be unwise to begin using a credit card if you are not in control of your finances. traveling expenses. Paying the minimum balance will not do. Though not readily apparent. entertainment. do not add to it. buying gifts. A ratio of over 20% is becoming unhealthy. there is a danger that you will be uncertain whether or not you are living within your means. that means using a spending plan. etc and creates what is known as consumer debt. 4. In managing your financial affairs. Your net worth is reduced to the extent of consumer . but contributes nothing to your assets. That¶s where a credit card comes to the rescue.

or at least not to all buyers in the same way. For . coca-Cola at one time produced only one drink for the whole market. major consumer products companies held fast to mass marketingmass-producing. For most of the past century. and too varied in their needs and buying practices. Most have moved away from mass marketing and inclined towards market segmentation and targeting-identifying market segments. each company must identify the parts of the market that it can serve best and more profitably. too widely scattered. and developing products and marketing programs tailored to each. and mass-promoting about the same product in about the same way to all consumers. many factors now make mass marketing more difficult. selecting one or more of them.debt incurred. This in turn. Moreover. Buyers are too numerous. can translate into either lower prices or higher margins. however. But as you go about it. most companies are being choosier about the customers with whom they wish to build relationships. Henry ford typified this marketing strategy when he offered the model T Ford to all buyers. So do have yourself a happy holiday.´ Similarly. Thus. Instead of scattering their marketing efforts. hoping it would appeal to everyone. Shrinking net worth is not good for your financial health. the companies themselves vary widely in entire market. mass-distributing. which leads to the lowest costs. Companies have not always practiced market segmentation and targeting. These companies argued that mass marketing creates the largest potential market. finance it in a way that gives you the comfort that you won¶t be debt-laden the following month Understanding consumers As per Kotler Armstrong (1996) ³Companies today recognize that they cannot appeal to all buyers in the marketplace. firms are focusing on the buyers who have greater interest in the values they create best. they could have the car ³in any color as long as it is black. sometimes against superior competitors.

g. here the Hispanic segment. culture. signs. marketers find it very hard to create a single product or program that appeal to all of these diverse groups. there single parents. y How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer. here working women. products. Today.the baby boomers here. feel. and select between different alternatives (e.. the world¶s mass markets have slowly splintered into a profusion of smaller segments. for making better marketing campaigns.e.. here the Sun Belt. y The behaviour of consumers while shopping or making other marketing decisions. family. there the African American segment. For example. y Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. There are four main applications of consumer behaviour: y The most obvious is for marketing strategy²i. y The psychology of how the consumer is influenced by his or her environment (e.´ Kotler Armstrong (1996). media).g. What is Consumer behavior? Consumer behavior depends on some basic points y The psychology of how consumers think. Credit card companies were also in to mass marketing in the past years as they were offering the same services to all types of customers but now as the competition is high. there the Rust Belt.example.. they should provide services according to needs of different type of customers as students have different needs in terms of use of credit cards as compared to business men or a housewife. by understanding that consumers are more receptive . the Gen Xers there. brands. reason. and y How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. and retailers).

a number still became pregnant while taking the drug.to food advertising when they are hungry. was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. obviously. however. to the rest of the population. y As a final benefit. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them. y Social marketing involves getting ideas across to consumers rather than selling something. you often pay a size premium by buying the larger quantity. the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. Common sense suggests. however. using knowledge of consumer attitudes. was introduced. in this case. would be if we could get illegal drug users to stop. knowing this fact will . In the 1980s. Accutane. In practice. and then only gradually. a marketing professor. a goal that was believed to be more realistic. a near miracle cure for acne. Unfortunately. studying consumer behaviour should make us better consumers. Accutane resulted in severe birth defects if taken by pregnant women. Marty Fishbein. since they will in turn influence many subsequent customers¶ brand choices. In other words. we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers. Although physicians were instructed to warn their female patients of this. The best solution. To get consumers¶ attention. for example. By understanding that new products are usually initially adopted by a few consumers and only spread later. As a result. you should pay less per ounce than if you bought two 32 ounce bottles. This. we learn to schedule snack advertisements late in the afternoon. went on sabbatical to work for the Centres for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. y A second application is public policy. that if you buy a 64 liquid ounce bottle of laundry detergent. Dr.

More precisely. Oliver 1981) or a response to an evaluation process (e. consumer satisfaction definitions have either emphasized an evaluation process (e. 1981. a fulfillment response (Oliver 1997). Westbrook and Reilly 1983).. Fornell 1992. It¶s not an easy concept to conclude because there are many factors leads to consumer satisfaction. Oliver 1997. and Schmidt 1994). Howard and Sheth 1969. Hunt 1977. From an operational perspective. and Schmidt 1994. psychological state (Howard and Sheth 1969). global evaluative judgment (Westbrook .g. From a general definition perspective. Consumer satisfaction In order to understand the consumer behavior one should consider the concept of consumer satisfaction too. thus. there is an overlap between the domains of the determinative process constructs and the consumer satisfaction construct. Tse and Wilton 1988. process definitions are plagued by antecedent constructs included in the conceptual definition. process definitions are problematic in that there is little consistency in the satisfaction process. overall evaluation (Fornell 1992).e. affective response (Halstead. Hartman. Hartman. there is an overriding theme of consumer satisfaction as a summary concept (i.sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain.. Most definitions have favored the notion of consumer satisfaction as a response to an evaluation process. Specifically. Consumer satisfaction is that area of consideration that attracts all the efforts of an organization. Halstead. To understand the concept one should consider all aspect of the topic area. At the end of the efforts to save the products long term loyalty can be achieved if consumers are satisfied. ³A basic definitional inconsistency is evident by the debate of whether satisfaction is a process or an outcome (Yi 1990). basically satisfaction part..g. Researchers agree on the concept that it¶s a wide area that is not easy to conclude.

Of course. Studies conducted by Cronin and Taylor (1992) in service sectors such as: banking. whether a customer¶s expectations are met or exceeded in an individual transaction or a longer-term relationship ± is the lowest level of this hierarchy. "I would recommend the school to students interested in a business career. However. A five-level hierarchy of customer behavior can be developed on the basis of this information. dry cleaning. and to acquire repeat and referral business. we know that it supplies the preconditions under which customer loyalty ± in which a customer devotes an increasing ³share of wallet´ to repeat purchases from the same supplier ± may be developed (Heskett. Furthermore. McAlexander et al. Cadotte. Bolton and Drew 1991.although conceptual definitions are void of a behavioral orientation. It suggests that customer satisfaction ± as determined by. Halstead. among other things." (Halstead. 2002). 1992). The obvious need for satisfying the firm's customer is to expand the business.g. .. or evaluative response (Day 1984)). They are built on the foundation of understanding customer needs and wants. pest control. Howard and Sheth 1969. and fast food. Hartman. there is disagreement concerning the nature of this summary concept. Westbrook and Reilly 1983). Tse and Wilton 1988) or an affective response (e. service or brand again and again means customer loyalty to that product. Customer satisfaction is considered to be one of the most important outcomes of all marketing activities in a market-oriented firm. Woodruff. to gain a higher market share. Similarly. all of which lead to improved profitability (Barsky. and Jenkins 1987. and Schmidt 1994. and Schmidt 1994)... (1994) found that patient satisfaction and service quality have a significant effect on future purchase intentions. operational definitions may include a behavioral dimension of satisfaction (e. found that customer satisfaction has a significant effect on purchase intentions in all four sectors.g. values and attributes of customer which encourage them to purchase and use the same product.g. Feelings. Researchers portray consumer satisfaction as either a cognitive response (e. Hartman. in the health-care sector. summary attribute phenomenon (Oliver 1992).1987).

manufacturers can boost production and inventories. found that service quality was the single most important determinant of image. public relations. Image is considered to influence customers' minds through the combined effects of advertising. Similarly. Investors. (Selnes. Government can expect improved tax revenues based on the increase in consumer spending. such as mortgage applications and credit card use. 1991). if consumer confidence is improving. Banks can plan for a rise in demand for credit products. banks and government agencies use various assessments of consumer confidence in planning their actions. Thus. they will prepare for the reduction in lending activities. word-of-mouth. The government will get ready for the reduction in future tax revenues. especially for expensive and durable goods. manufacturers. a customer's experience with the products and services is considered to be the most important factor that influences his/her minds in regard to image. Differences of consumer behavior in UK and India Consumer¶s behavior on usage of credit cards is very variant in UK and India. The ability to predict major changes in consumer confidence allows businesses to gauge the willingness of consumers to make new purchases. using numerous researches on service organizations. As a result. Builders will plan for the decline in home construction volumes. people are expected to increase their purchases of goods and services. If confidence is dropping and consumers are expected to reduce their spending. The relevance of a consumer confidence index for a country like India is . In anticipation of that change. businesses can adjust their operations and the government can prepare for changing tax revenue. Large employers can increase hiring rates. most producers will tend to reduce their production volumes accordingly. Similarly. Builders can prepare for higher housing construction rates. and their actual experiences with the goods and services (Normann. retailers. On the other hand. 1993). For example. they will cut down their inventories in advance and may delay investing in new projects and facilities. physical image. if banks expect consumers to decrease their spending.Literature identifies a number of factors that reflects image in the customer's mind. if manufacturers anticipate consumers will reduce retail purchases.

The group said autumn sales.524 billion (E96.2008) the diffusion of credit cards is very slow in India compared to the international scenario. while the rising cost of food and cotton may also be starting to filter through into prices. According to the research done by ³Morgan Stanley /*-Group´. Stuart Neal. Most of the daily use items are being bought with the use of credit cards. further boosting spending levels. According to the study done by Chitra krishnaswmay (Sarawak. Patrick Muir (Marketing Director of Morgan Stanley Consumer Banking). Many Indian consumers still prefer to use debit cards linked to salary accounts when spending their money. The 'buy now. People spent 9. the trend for using credit cards for daily use items .evident from the fact that Consumption Expenditure accounts for over 60% of India¶s GDP. India leads the way in debit in terms of card transaction value. The total universe of plastic cards issued . The total value of card transactions in India grew to INR6. and back-to-school spending had helped keep the retail sector buoyant during the month.Credit cards are being used for every day bills as the customers are becoming very plastic concisions. it is good to see a fourth month of increased spending. challenging suggestions that consumers are tightening their belts.credit and debit is just over 30 million in India. said: "With leading retailers warning that the Government austerity drive will keep the economy in the doldrums and hit consumer confidence hard. The low cardholding rate in the Indian market shows that the country still has untapped potential to be explored. Mr. head of Barclaycard UK Payment Acceptance. Britons are turning in to a credit card dependent society at a fast clip .4 billion) in 2008 On the other hand spending on credit and debit cards in the UK rose at a near doubledigit rate during the past year. discounts in shops. according to Barclaycard. Regarding the age of adopters of credit cards in India most (40%) of the adopters is in the age group of 46 to 55 years. pay later' concept is yet to catch on with most consumers in the nation. While Asia Pacific as a whole is clearly dominant in the pay later card markets.2% more on their cards during August than they did in the same month of the previous year.

MOTIVATING FACTORS OF USAGE AND OWNERSHIP Recognizing the case that credit card usage patterns of emerging markets in which India takes place largely differ from those of well-developed markets such as UK¶s market. Master card is . 2006). where as 45% use them for essentials like petrol and car expenses .continuing to grow. and Nasir. So these types of cards are very useful for salary class consumers. As per their research on 2000 consumers . Technological Factor Major changes have been done in UK for the plastic money people keep in their pockets and wallets.it is found that 38% of overall credit card holders use their credit cards to purchase groceries. Credit card issuers now finding different ways to attract customers in UK by adding different facilities to the cards according to the needs of the card holders. but there are moves to make the cards easier and quicker to use. understanding attitudes and credit card usage behavior may affect the development of marketing strategies of credit card companies. Barclaycard revealed the brand name of its three-in-one payment card ± One Pulse The card will be the only one in the UK to combine Transport for London's Oyster card with a credit card facility. credit card companies may be able to change consumer attitudes towards using and owning credit cards (Kurtulus. for not only are credit card companies taking tentative steps to ensuring the material the cards are made of is more environmentally friendly. Equipped with this kind of knowledge. Meanwhile. Such factors can be Population Factor The population of India is a lot more than UK but the use of credit card as a mode of expenditure is very high in UK as compared to India.

material objects. Patrick Muir (Marketing Director of Morgan Stanley Consumer Banking). rock music and slang words. and participate in a common culture. People in UK use credit cards for daily grocery or for petrol in car or to pay for a drink in the pub where as the culture in india is totally different .Some people don¶t use credit cards due to religious values like in muslim religion its not allowed to take or give any interest on money. socially transited costume. including ice cream cones. Culture consists of all objects and ideas within society. Mr. In sociological terms. initially in partnership with fast-food chain McDonald's (MW April 7). knowledge. and behavior. According to the research done by ³Morgan Stanley Group´.looking to introduce a similar product in the UK. A society consists of people who a common heritage and culture. are relatively independent of people outside their area. Culture and Society Factor Culture is the total of learned.Credit cards are being used for every day bills as the customers are becoming very plastic concisions. values and artifacts of groups of people. Culture includes the ideas. the trend for using credit cards for everyday items are continuing to grow. A fairly large number of people are said to constitute a society when they live in the same territory. . These "wave and pay" or "contactless" cards aim to make life easier for consumers. Members of the society learn this culture and transmit it from one generation to the next. culture does not refer solely to the fine arts and refined intellectual taste.people still use cash as main mode of payment for daily use things . Britons are turning in to a credit card dependent society at a fast clip . Most of the daily use items are being bought with the use of credit cards.

Language can be a barrier in india for global companies because in all 28 states of India people speak different languages and to provide them complete knowledge about the product or taking exact feedback from them can be only possible in their own language. Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. A society consists of people who a common heritage and culture. which facilitates day to day exchanges with others. Having a common culture also simplifies many day to day interactions. are relatively independent of people outside their area. and behaviour through his or her family and other key institutions. when you buy an airline ticket. perceptions. You can pay with credit card. racial groups. For example. you know you don¶t have to bring along a hundreds of pounds or thousands of rupees in cash. ³Cultural. Language is a critical element of culture that sets human apart from other species. So using credit cards which is an easy and safe mode of payment which saves time of withdrawing cash from bank or keeping cash with you all the time has become an important part of daily life of UK based customers. Members of a society generally share a common language. English is the main language which is used all over world however. subculture. grass signifies both a plant eaten by grazing animals and an intoxicating drug. Members of the society learn this culture and transmit it from one generation to the next. and social class are particularly important in buying behavior. For example. When subcultures .A fairly large number of people are said to constitute a society when they live in the same territory. in United States. religions. beliefs. Subcultures include nationalities. preferences. and participate in a common culture. Culture is the fundamental determinant of a person¶s want and behavior. This assumption reflects basic values. Most of the big brand stores in UK like Tesco or Argos who provide service of online shopping sitting at home take the payment from cards and having a good response from customers of online shopping because it makes their life comfortable and easy and saves a lot of time. a term can have a number of different meanings. and customs of the culture of United Kingdom. even within the same society. and geographic regions. The growing child acquires a set of values.

From traditional people we mean by the class of people who think that it is a wrong habits of spending money without having money in hand. free cash withdrawal facilities during festival times etc. Its simply because of the kind of consumers. As far as non usage of credit cards is concerned it is heavily depends on the thinking and background of the consumer. In UK the cards being used from last few years comes with a chip and pin number .kotlar (2004) it is true that consumers are heavily affected by the culture and subculture. (kotlar 2004) Based on the above statement of Philip kotlar. Awareness factor Usage of credit card is depends on the awareness of the consumers of the product. Awareness factors include the education and proper information about the product. but still this concept is not acceptable to traditional people. Such programs are known as diversity marketing´. There is a huge number of service providers competing in the market working at different levels. types of facilities available on the product and in terms of credit card most important is the security of the credit card. Suitable deals. In India this product is ruling the market for last 12 to 15 years. In UK. these days credit card companies are providing insurance. In India main revolution came after liberalization of Indian economy in the year 1991.Earlier the companies provide cards with magnetic strip on the back of the card and the problem with the cards was that the details of the cards were easily traced by hackers . In term of credit card usage it is true that indian people still having conservative approach towards credit card proving Kotlar¶s(2004) statement. This is being seen as a kind of taking loan-which is a big fear. In UK consumers are well aware and aggressive and overall education level is higher than in India.grow large and affluent enough. it¶s being used and offered for many years back. companies often design specialized marketing programs to serve them.

for example World Bank reports. it could be via journals and text books. Numbers of ways are available to collect the secondary data. the best source of secondary data is companies¶ According to john in 2000 ³Secondary data is the data which already used. Reliability of data also depends on the updated information. In India. written by well-known and qualified authors. General articles are more reliable because they are more updated as compare to books. Methodology: Secondary Data: Secondary data could be raw data or could be published data. secondary data is used to get a new look of the current research or can be used to compare currant work with author (John. which is collected by others for any reason. performance reports. But people are still unaware of it yet. journal articles. books and internet is considered as major source of secondary data for research. It took years to bring books in markets. The more updated information will leads towards more reliable data.which was used to make fake or counterfeit cards to rob the actual owner. the most important factor is the source of data. news papers and internet portals can also be used . reports by government or financial institutes. 2000). There are number of questions on the reliability of the secondary data gathered on internet but it is still important if it is handled carefully. The cards being used now adays with chip and pin are more secure and can be trusted by the customers. this because of the changing nature of environment. the credit card companies now started using the chip and pin service in their cards as well. Secondary data will be reliable if source of data is reliable. Reliability of secondary data depends on number of factors. Case studies. In the case of corporate companies.

videos and broadcasts. Internet.Secondary data can be collected in many ways such as via journals and text books written by the qualified authors. Primary Data: Most research requires the collection of primary data (data that you collect at first hand). the data is collected using methods such as interviews and . Unofficial or general business sources. indexes. journals. internal records of organisations. y There are many sources of data and most people tend to underestimate the number of sources and the amount of data within each of these sources. annual reports. directories. periodicals. market reports. newspapers and articles which contains the recent information about current innovation activities. research reports. It is most likely that the place for this data will be in main introduction or literature review as support or evidence for the argument. in primary data collection. y The main sources of qualitative and quantitative secondary data include the following: y y Official or government sources. If it used (analyse it or re-interpret it) for a different purpose to the original then the most likely place would be in the µAnalysis of findings¶ section of the dissertation. abstracts. conference papers. case study relevant to the current work. newspapers and magazines Electronic sources± CD-ROMs. on-line databases. Sources can be classified as: y Paper-based sources ± books. Secondary data can be used in different ways: y The data can simply report in its original format.

The popular ways to collect primary data consist of surveys. which shows that direct relationship between potential customers and the companies whereas secondary research is a means to reprocess and reuse collected information as an indication for betterments of the service or product. Both primary and secondary data are useful for businesses but both may differ from each other in various aspects. until you publish.questionnaires. Primary research entails the use of immediate data in determining the survival of the market. which depend upon the type of research and also depends upon the findings we need. There are different ways to get primary data. There are two bas Primary data is the main data which is gathered it is mainly consist of survey questionnaire which is mixture of structured and unstructured questions. There are two basic approaches of research y y Qualitative research Quantitative research . no one else has access to it. which is mostly gathered by using different tools like question are and interviews which could be structured or unstructured. Primary data is considered as a main data. The usage of tools is depends upon what type of research method we are using. The key point here is that the data collected is unique to you and your research and. interviews and focus groups. There are many methods of collecting primary data and the main methods include: y y y y y y y y questionnaires interviews focus group interviews observation case-studies diaries critical incidents Portfolios.

in other words quantitative research is more structured and more formalized as compare to qualitative research.Solvang 1991). This research is also considered an inductive approach between theory and research.Qualitative Research: Qualitative research is related to more about words not numbers.´ Qualitative research is deeper and tends to have complete understanding of the data or the problem. Qualitative research could be called as deeper and is tends to understand the deep roots of the data about the problems ³Qualitative research is less formalized than quantitative research. Generally open ended questions are part of the interview in qualitative approach. in qualitative research questions are mainly designed to investigate the subject area of certain problem. which means it can be change during its operations. in broad perspective and is mostly generalised the situation (Holme. the main concern of Qualitative research is explaining a social phenomenon. rather than going for numerical results 2) Sponsorship is not a linear process. Key Points about Qualitative Research 1) According to Flick U. Quantitative Research: In quantitative research numbers are considered central unit for analysis. There are number of things which make quantitative research easy to handle as compare to quantitative research. (Holme. Moreover quantitative research treats the problem. The most important reasons is less number . Qualitative research can be called as investigative methodologies. 1988). quantitative research is mostly used for large scale research. (2002). Solvang 1991). The result of quantitative research is mostly measurable and easily understandable because of the numeric terms used in such type of research. interview is the main source of data gathering. In qualitative approaches Interview is considered as an integral part for investigation (Jacob. The major difference of qualitative research with quantities research is that quantitative research is more formalized and qualitative research is less formalized. In qualitative research variables are looked in the nature they exist.

Quantitative research is divided into different steps. but small enough to be manageable. Random sampling technique ensures that bias is not introduced regarding who is included in the survey. In this section the two major types of sampling. and the making of hypothesis.of variables in quantitative research as compare to qualitative research. The population of this study comprises of various individuals who bear at least one or more credit cards.  Random sampling In random sampling. research design is next step. Research Type Selected: Sampling method and techniques Sample decisions hold the key to usefulness of a survey exercise. in the process of quantitative research data is gathered and analyzed to find a solution of problem or to prove hypothesis. A sample must be large enough to give a good representation of the population. and these variables can be applied on large scale . random and non-random. Five common random sampling techniques are: y y y y y simple random sampling systematic sampling stratified sampling cluster sampling multi-stage sampling . will be examined. all items have some chance of selection that can be calculated. the first step is it starts with theory.

or clusters. The advantage of simple random sampling is that it is simple and easy to apply when small populations are involved. every fifteen minutes) to ensure that machines and equipment are working to specification. Other strata may be religion. means that there is a gap. It also gives a good spread right across the population. Some examples of strata commonly used by the ABS are States. A number of clusters . this method is very cumbersome to use for large populations. The advantage of systematic sampling is that it is simpler to select one random number and then every µIth¶ (e. A sample is then drawn from within these strata. if you wish to know your sample size and calculate your sampling interval. or interval. between each selection. where an item is selected for testing from a production line (say. academic ability or marital status.g. than to select as many random numbers as sample size.  Stratified sampling In stratified sampling. Simple random sampling With simple random sampling. each item in a population has an equal chance of inclusion in the sample. This method is often used in industry. Cluster sampling divides the population into groups. the population is divided into groups called strata. However. A disadvantage is that you may need a list to start with.  Cluster sampling It is sometimes expensive to spread your sample across the population as a whole. sometimes called interval sampling. 20th) member on the list.  Systematic sampling Systematic sampling. Age and Sex. because every person or item in a population has to be listed before the corresponding random numbers can be read.

Researcher went to the Crown Plaza Hotel Birmingham (UK) to pick 30 samples and same numbers of samples from New Delhi (India) were taken with the help of an employee working in the hotel. In the first stage. It is on this collected data that the researcher performs the analysis and arrives at the conclusion. The Simple Random Sampling Method was used. So researcher went with simple random sampling techniques. They are represented by those from selected clusters. rather than including all units in the cluster. Sample size: 30 sample from India and 30 from UK has been taken as sample size for this study. multi-stage sampling involves selecting a sample in at least two stages. Researcher referred . but involves selecting a sample within each chosen cluster.are selected randomly to represent the population. No units from non-selected clusters are included in the sample. This differs from stratified sampling. large groups or clusters are selected. Thus. Instruments of Data collection: A market research project is based on the data collection. Researcher chosen hotel because he believe hotel is the right place to find professionals. These clusters are designed to contain more population units than are required for the final sample. where some units are selected from each group. and then all units within selected clusters are included in the sample. Sample type selected: Sampling techniques used in this research is simple random sampling on the hotel guest from India and UK. This characteristic of probability sampling makes it much more desirable given our goal of generalizing to the larger workforce population. The selection probability of a case was equal to 30 guests (target sample). Every guest in the hotel had an equal chance of being selected to avoid any bias.  Multi-stage sampling Multi-stage sampling is like cluster sampling.

74 are male from total responders. How many don¶t have a credit card and why Main reasons for not having a credit card. expressed in differing ways. Researcher chosen questionnaire because researcher feels that this segment of the people who coming to the 5star hotel is very high and intellectual so time could have been the limiting factors and they would not allowed to conduct interview because conducting interview is time consuming. Researcher saved respondents time so respondents can answer his questions truly and comfortably without wasting too much of their precious time. In India usage of credit card is increasing steeply specially in youth as they think that having a credit is status symbol. through choice. Only 15 out of 95 have a credit card. Don't know Prefer to use charge card Put off by complexity Never thought about it 1 2 4 6 .questionnaire as a tool to collect data from the primary source. are a claimed preference for using cash (44%) or a debit card (23%). Almost 47 women and 45 men have a credit card from total respondents. Using cash may also include cheques and debit cards. On the other hand in UK credit cards are equally famous in men and women but women use credit cards more frequently. which are widely considered as µcash¶. In practice. it is possible these reasons may all be related to a fear of debt. Data analysis and results How many have a credit card and which gender is more in numbers About 95 people ask that how many of them have a credit card in both the countries. fear of getting into debt (33%) and not being interested (30%). But women still are not encouraged to have one.

Prefer to use cash 44 Some people regard having a credit card solely as a means of borrowing money (11%). Don't know Other Indebted/ CCJ Lack of credit history Applied but been refused Not bothered to apply think will be refused Insufficient income Too young/ recently financially independent 5 7 9 7 10 14 27 28 Credit cardholders were asked how often they used their credit card . Barriers to obtaining a credit card One key reason why the minority who would like a credit card do not have one is that they are too young and only just finding their feet financially.No need to borrow Prefer to use debit card Not interested Fear of getting into debt 11 23 30 33 No need.Those who work are much more likely to mention a preference for using cash (53%) than those who do not work (33%). about half are aged 16 ± 24. Another important reason is low income. Although a small number in total.

over a quarter of those with two or more only have one in active use. Well over a third (36%) use it at least once a week and three in four (74%) use it at least once a month. several times a week Daily 2 8 16 17 17 18 3 Not weekly. a significant minority have two or more. Don't know Varies from month to month Less than once a month Once a month Once a week Not daily.On average. several times a month 19 Credit card users ask how many of them have 2 or more cards Although a majority of people have one credit card (63%). the number with one increases to three in four (73%). there is wide variation in actual usage. When asked how many are in active use. It is therefore the case that at least one in ten credit cardholders have one or more credit cards that have fallen into disuse but not been destroyed. 1 63 73 2 23 19 Total In active 3 Or More 14 8 . credit cards are used a little more than once a week.

not surprisingly.There are five reasons for having more than one credit card people give ‡ to maximise the amount they want to borrow (22%) ‡ one came automatically with their bank account (18%) ‡ they offer different things .48%). Don't know Other Free gift To support a charity Can use anyw here/ convenient To consolidate debts My bank offered me it 3 7 5 4 6 3 7 . one is for exceptional items ± e. Motivating factors when choosing a credit card Credit Card holders were asked what factors persuaded them to choose their credit card. a holiday (15%) ‡ one is for personal spending and one is for joint use with partner (20%). The balance transfer interest rate (typically 0% for the first 6 months) is a consideration with one in five (22%).e. Taking all answers into account. Another one in five (19%) did not so much choose their card as have it issued to them when they opened their bank account. mentioned by four in ten. one gives low interest rate the other gives loyalty points (16%) ‡ one is for everyday spending. Points/reward schemes are a motivating factor with 18%. Along with these factor there is one extra factor which only effects in India that is culture.g.g. another 9% say their bank offered it to them as an existing customer. Similarly. Indian¶s have a great influence of that in their lives and almost half of them are still so traditional in using money instead of a card. the interest rate. The brand name/ reputation of the company issuing the card was also a key factor in choice of card. is the choice factor mentioned by the largest proportion of card holders (almost half.

Timing (leaflet came at right time) Cash back scheme Extended w arrant/insurance benefits Personal recommendation Points/rewards scheme Offered w hen opened bank a/c Balance transfer interest rate Brand name/reputation Interest rate 10 12 13 11 18 20 21 41 46 The young (16-24) and the old (55+) are more influenced by brand/reputation perhaps for different reasons. The young may be thinking more in terms of trendy brand image while the old are thinking about reputability. Level of understanding Card holders were asked whether they:a) Have a very good understanding of credit cards and what¶s on offer b) Understand a fair bit about how things work and what¶s available c) Have a limited understanding. 10% are just not interested in how credit cards work (in spite of having one). The largest proportion claim to understand them a fair bit (45%). or d) Are not really interested in how credit cards work Only one in five claim to have a very good understanding. trustworthy name. However as high a proportion only three in ten admit to having only a limited understanding. Not really interested Limited understanding Understands a fair bit Very good understanding 10 32 45 13 Credit Card agreement ± easy to understand information .

Only a minority within each group find the credit card agreement easy to understand. the cash withdrawal fee and one in six. The main reasons for finding the agreement difficult to understand are as follows. the fee for using the card abroad. Late payment penalty fees 50 Cash withdrawal fee Fee for using card abroad 36 15 . almost four in ten. 12% mentioned an annual fee and 11%. This varies by demographics with the 55+ less likely to find it easy. a fee for replacement cards. Only a quarter found it easy. Multiple responses were accepted for this question:‡ Print too small (40%) ‡ Too much information (25%) ‡ Jargon (19%) ‡ Difficult to understand (14%) ‡ Looks complicated (12%) ‡ Confusing (9%) ‡ Figures need explaining (5%) ‡ Not laid out well (8%) ‡ Other (7%) ‡ Don¶t know (1%) Awareness of other charges other than interest When cardholders ask about charges other than interest they might be liable to pay.Cardholders were asked whether they found the information in the credit card agreement easy to understand. half of them mentioned the late payment fee.

safe.Annual fee 10 Fee for replacement card Fee for statement copies 10 8 Handling fee Balance transfer fee 5 2 Other DK/None 2 27 Just over half are aware that there is often more than one APR quoted on promotional literature. fast. Easy to use Easy to carry 22 33 Fast 19 . Like 2 out of six mentioned easy payment (22). There are different answers from a number of people. As mentioned in literature review above it easy to use. It¶s easy to carry a single card as compare to big amount of money 33 said. Advantages of having a credit card Cardholders asked what advantages do they think the can have with a credit card. flexible.

High rates of interest Out of budget Cost 31 25 17 Extra expenses 18 Hidden charges Frauds 11 16 . extra cost and most important is credit card frauds. Short term finance end up in a big loan 4 out 10 says and as mention above blow your budget. When cardholders ask about them they mentioned extra paybacks 3 out 5.Flexible 17 Safe Extra benefits 20 15 Helpfull in emergencies Others Dont know 12 10 2 Disadvantages of having a credit card Just advantages there some disadvantages as well.

spread payments out over several months. Mostly people took out credit cards with one good offer and don¶t even bother to get information about the rest things in it. Now these cards are status symbol as well as a necessity of life. One can buy anything he wants with a credit card which usually he don¶t even afford. from air tickets to gardening tools. interest rate service charges. This thing put them in huge trouble. Now it the time of online shopping from cloths to shoes. Like APR. groceries to toiletries and to buy all these things u need a card which is an important essential of life now a days. credit cards have grown to become an indispensable part of modern life. It¶s attractive till here but when it comes to paying back if he is not efficient it¶ll put him in great problem. Nowadays consumers rely on their credit cards to help them achieve their lifestyle goals by letting them take advantage of special bargains.Don¶t know 3 Conclusion In 1951. Even in the traditional country like India the usage of credit card has increase steeply. Credit cards have become so widespread that they are often accepted as a piece of primary identification. From that modest beginning. and provide cash in emergencies. annual fee. late fee charges and many other which can also make great trouble for them in future. Little information or sometime no information mostly put them in big amount of debt. Everybody want a credit card today but according to a survey only 20% total consumers have complete understanding to it all rest either have a bit or no understanding. Short term finance can helps one in his bad time but high interest rate can put him in debt as well. . Credit cards are convenient way to pay for all kind of products. Diners Club issued the very first credit card to 200 customers who could use it at a selection of twenty seven restaurants in New York City. Many consumers regard them safer then use of cash.

To minimize the dangers to your financial health. giving information about your card to just anyone or on any website. And some time it¶s not that safe also if you don¶t use it carefully. And extra expenditure makes you out of pocket. a credit card is just a tool. pay your bills on time. Credit cards themselves don't put people in debt. You need to use them wisely to have the full advantage of them and stay away from the trouble. After all. choose your cards wisely. don't use it. and tools are only as dangerous as the people who use them. . most importantly. think twice before using them and.It¶s easier and safer to carry a card instead of liquid cash but having a card in your pocket makes you spendaholic as well. All in all credit cards are essential to life now days but they need care and full understanding. don't carry a balance. it includes your signature. There are plenty of places where your credit card will come in handy just be sure that you dson't let the cost of this convenience get out of hand. If your credit card doesn't help you save money or provide a useful reward at no cost to you. If one use his credit card wisely it never create trouble for him. not checking your statement regularly and so on.

. Protect yourself against fraud. Do all the charges look correct? Have any required credits been applied? Are there any unusual or unexpected charges? Your credit card company will correct legitimate errors.1 You need to follow these simple tips to get the most from your card. A little budgeting can save you big money down the road. then make as large a payment as you can comfortably afford.Recommendations Here are some recommendations to get the most from your credit cards and stay away from the problems it involves four main steps: y y y y Use your credit cards wisely. This is the most important thing you can do to preserve and enhance your credit rating. Pay your credit card bills on time. If this is not possible. pay off your balance in full each month. then slow down on your credit card use for some time. Check your statement carefully each month. Review your statement carefully. If you can¶t pay off your balance in full. but only if you bring them to their attention in a timely manner before you pay your bill. Review your credit history regularly Get the right card for your needs. If possible. Always pay at least your minimum payment and allow time for your payment to reach the company. Take time to step back and have a careful look at how much you earn and how much you spend each month. Paying off or paying down your balance is a sound financial move that will save you money on interest charges. Use your credit cards wisely 1.

Anyone passing by can record your number and begin to use your card number fraudulently.Transfer your balance to a card with a lower interest rate. It doesn¶t hurt to ask. You can purchase an inexpensive paper shredder at an office supply store. y y y Use caution when giving your credit card number out on the phone or on the Internet. Negotiate for a lower rate with your credit card company. When you receive you¶re new or replacement card in the mail. Shred old credit card receipts. and you may be surprised at the results. imply you may cancel the card and go with a competitor unless they adjust your rate downward. You will save money each month and simplify your record keeping by receiving only one bill. Call them and seek ways to lower your interest rate. Only give out your credit card number on telephone calls you . you are a valuable asset to your credit card company. right away. in ink. here are a few simple steps you can take to greatly reduce the risk of becoming a victim. y Sign new cards immediately. Your credit card number can lie for hours in the fax basket at the other end. This is often possible. 1. but never advertised. This prevents the common practice of criminals going through the trash to find receipts and stealing your identity Never fax your credit card number. It is even possible for criminals to intercept your credit card number while the fax is in transmission.2 Protect yourself against fraud While credit card fraud is a problem. sign it. destroy the old card by cutting it into many small pieces. If it is a replacement card. If you have a good credit history. If the interest rate you are currently paying is very high. If you have two or more credit cards with outstanding balances. consider moving the outstanding balances to the card with the lowest interest rate. All old receipts with your credit card number and any unneeded documents with your social insurance number or other sensitive personal information should be shredded before disposal.

offer better features. and even support a cause you believe in. review your credit history on a regular basis. look for an Internet addresses that begins https:\\. This is excellent protection and is highly recommended. Here are some tips on finding the right card and where to check that you have the best card for your needs . This helps ensure your history is accurate and that any issues have been resolved to your satisfaction.3 Review your credit history regularly After you have obtained the best credit card. Never give your number out to callers who call unannounced. When checking on your rating. chances are good. The ³s´ indicates that it is a secure connection and a small padlock symbol should appear in the bottom right hand corner of your screen. be sure to contact all credit check bureau. Call your credit card company instantly if you suspect trouble. 1. y On the Internet.initiate to business or organizations you trust. Take advantage of any security features your card offers. call without delay Much fraud happens within the first hour or two. as your rating may be held on file at more than one bureau.4 Get the right card With all the choices in cards available. and are using it wisely. And keep our self uptodate. no matter how legitimate the call sounds. If you lose your wallet or purse or have it stolen. y y 1. before the victim realizes the cards are missing. All credit card companies have 24 hour lost and stolen help lines. Check the Yellow Pages. very good. Many newer cards have the option of including your photograph on the card. you can find a better card for your needs. indicating it is safe to transmit your credit card number. Today¶s cards can save you money. under Credit to find the numbers in your area. Your credit card company will block your cards from being used and stop you from being responsible for any charges.

trip cancellation coverage. y y y . Other options worth having include car rental insurance coverage. and cards that support charitable organizations. programs that bank points toward a new car. including frequent flier points. you can find cards that do not charge this annual fee. While this may be offset by other benefits the card may offer. Many credit cards charge you a fee each year to use their cards. as each percentage point drop will save you money on the months you have an outstanding balance. You want the lowest rate possible. the rate can revert to a much higher permanent rate. Why pay for the privilege of using a credit card when you don¶t have to? Explore the options: Today¶s cards offer a wide range of excellent features. This is the interest rate the companies charge you if you carry a balance. At the end of this time. Lower is better: read the fine print and find the Annual Percentage Rate (APR). Keep your eye on the Annual Percentage Rate (APR). and extended warranty coverage. Go for best: Try for a credit card that does not charge an annual fee. often six months.y Be alert for companies offering a great interest rate for transferring your existing balance to their card. Usually these rates are only in effect for a short time. this is the figure that counts in the long run.

2010 Vol.T. P. Iss. 1-52. H. P. Emergency funds and alternative forms of saving. L. 50-81. (2004). Third Quarter (3). 133. Jr (1989). Okan Veli Safakli. & Montalto. L. pg. C.W. Association for Payment Clearing Services. pp. Sumy: 2007. Journal of Economics and Business. Jr and Mathews. Lindley. The Journal of Marketing. Working paper. Investment Management & Financial Innovations. Business Monitor International Q3. Adverse selection in the credit card market.. Financial Services Review. 10 (27). 41. Bi. Vol.. J. India's Rural Banks Asked To Offer 'No-Frills' Credit Cards. L. The failure of completion in the credit card market. UK Payment Statistics. 5 Chibber. and Selby. Vol. Slocum. "Credit card possession and use: changes over time". (1991). pg. Cardline Newyork. Iss. pp. (2010). American Economic Review. Ankush Chibber cardline . (1999). 4. (1970). 10. Vol. 69-74. 12 pgs . 34. 81. Ausubel.Referencing : APACS (2006). p1. (2010).L. Rudolph. Business Monitor International. Ausubel. E. 93-109. 12. April. India commercial Banking Report. New York: Mar 19. 127-42. 4. University of Maryland.B. 5. London. A. 13. J. "Social class and income as indicators of consumer credit behavior".

Sign up to vote on this title
UsefulNot useful