04 Apr 10 What Makes People Use their Credit Card

Written by: bikram

What is that one thing that pushes people to take their plastic out for swapping?

In a study conducted by compete.com of the credit card holders, it was found that 46% use credit card where there is any kind of reward points. And 31% of respondents said that they do use credit card if there is no annual fee involved. Another 12% respondents cited low interest rate as a feature that will push them to use their credit cards.

There is nothing new in these findings, as these results are always known to us, but having a research support the supposition means reliability of data. It would be interesting to see how credit card companies react to that (See image for complete result of the survey).

In my opinion, charging an annual fee for any card is insane. It is like asking people to pay to remain member of the community in the world where most of the good things are free. After all, who wants to pay fee for retaining a credit or debit card?

Tags: Credit Card Companies, Credit Card Holders, Credit Cards, Debit Card, Insane, Interest Rate, Reliability, Respondents, Reward Points, Supposition, What Makes People