An Investigation Into The Factors That Influence Students ' Credit Card Usage

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Module Code:PM002 2T
Class/Group: Group 3
Module Title:Research Project
Assessment Title:Proposal
Assignment Title: An investigation into the factors that influence students’ credit card usage
Tutor Name: Debbie Hinds
Student ID Number: 2171360
Date of Submission: 2nd March, 2015

Rationale

Nowadays, it seems that trading method tends to be cashless, credit card as a pattern of payment allows a purchaser to buy a product or service instantly even if the purchaser does not have the money at hand (Foscht et al., 2009:325). In modern world economic systems, an increasing trend of transactions proceed via credit cards (Geanakoplos and Dubey, 2010:153), which is no exception for students. Firstly, they have powerful purchasing ability. According to Blankson et al (2012:568), College students have purchasing power of $200 billion annually. Recent data indicate that 84% of undergraduate students have a credit card, and the average number of cards held per cardholder is 4.6 (Mae, 2009, cited in Robb, 2011:690). Moreover, half of the students have at least four credit cards with an average total debt of $3,170(Hancock et al., 2012:369). Credit card debt levels of this dimensions indicate that a large number of college students use credit cards as a source of short-term revolving credit, being called installment users (Robb, 2010:824). According to Robb (ibid), previous research has identified two different types of credit-card users: instalment user and
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