Credit card holders, revolvers and convenience users:Evidence from Malaysia
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Date
2009
Authors
Andrew, K.G. Tan
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Abstract
This paper studies the characteristics of credit card holders in Malaysia and distinguishes
between convenience users and revolvers. The Tobit model with binary selection and ordinal
treatment is developed to accommodate the data feature that debts are incurred only among card
holders and the endogeneity of card holding in card debt. Results from a stratified sample in
Malaysia indicate that age, household size, income, education, loan commitments and currentaccount
ownership play a role in card holding. Age, loan commitments, previous credit cards
holdings, current-account ownership, and bad debt history affect the probability and level of card
debt. Multi-card holders are more likely to be credit revolvers than convenience users.