Knowledge, Beliefs, and Practices in the Use of Credit Cards

Abstract

The purpose of this study is to investigate the relationships arnong knowledge, beliefs, and practices in the use of credit cards. Data were collected from 198 household money managers in a midwestem town during 1982. Those respon dents with high levels of credit card knowledge believe credit cards should be used more for installment reasons than convenience reasons. Those respondents who believe credit cards should be used for installment reasons are inclined to use more credit cards and to accumulate finance charges more often. Those with more education and income have a higher level of knowledge than those with less education and income. The older respondents and those with low incomes believe that credit cards should be used for convenience reasons. Those with high education levels and large household sizes use more credit cards and accu mulate finance charges more often.