Utilizing the Theory of Planned Behavior to Understand Convenience Use of Credit Cards

Abstract

Utilizing the theory of planned behavior, factors influencing convenience use of credit cards were investigated. The analysis was prepared using data from 3,476 households in the 2004 Survey of Consumer Finances. Results from logistic regression indicated that convenience users of credit cards: were more likely to believe that using credit was bad, had longer financial planning horizons, did more shopping for credit, were older, had a college education, and had higher income. Respondents were less likely to be convenience users of credit cards if they: had no tolerance for risk, were late with payments, thought it was all right to use credit for vacations, and sought credit advice from other people and the media instead of doing their own search.