Credit Card Holders: Characteristics of Users and Non-Users

This paper aims to distinguish between those who hold and use bank credit cards and those who hold but do not use them. Discriminant analysis is applied to a sample of 825 holders of a bank credit card. The most important discriminators were where a card holder lives, age, income, years for which an account has been held at the issuing bank, years at present address and residential status. The results suggest particular market segments towards which a bank may wish to target its promotion, product and pricing strategies if it wishes to attract users, non-users or to convert the latter into the former.