Relationship between the Incentives Offered on Credit Card and Its Usage

Credit card is a financial product and it is defined as, a plastic card having a magnetic strip, issued by a bank or business authorizing the holder to buy goods or service on credit, also called charge card. The paper is all about the credit card usage behavior and factors that are affecting the usage of credit card. The main focus of the study is to find out the relationship between the facilities that are offered on the credit card and intensity of using the credit card. Besides it this study also focuses on that why people prefer to use the credit card and the other determinants that are affecting the usage of credit card like, Hidden charges, and higher interest rate. The survey is conducted in Rawalpindi region of Pakistan. The sample for this research is credit card customers in areas of Rawalpindi. Unit of analysis is credit card customer (individuals). After the collection of data, it is analyzed by frequencies and correlation check to find out the relationship between motives and hidden charges with the usage of the credit card. And the results reveals that there is a positive strong relationship between motives/facilities and usage of credit cart card. And there is a negative relationship between hidden charges and usage of credit card. Hence, motives/facilities are positively correlated with the usage of the credit card and hidden charges are negatively correlated with the usage of credit card.