Credit preferred to loans in retail
(28 May 2008 – Australia) A Citibank survey of retail customers has found that credit cards are preferred to loans because of the loan application.
The Citibank survey has shown that despite the higher interest rates on credit cards compared with loans, people simply cannot be bothered with the loan application.
Of the 1,000 people surveyed, 33 percent said they would choose to pay for an item costing $3,000 or more with a credit card, while just 10 percent said a personal loan.
Individuals are most likely to pay for items using personal savings, which accounted for 38 percent.
Citibank head of consumer lending Jacqueline Nissen identified that the two most important factors for using credit were the interest rate and ease of the application process.
While Nissen said that more individuals were taking out personal loans because of the savings that could be found, brand was the least important factor in doing so.
Of the 1,000 people surveyed, 33 percent said they would choose to pay for an item costing $3,000 or more with a credit card, while just 10 percent said a personal loan.
Individuals are most likely to pay for items using personal savings, which accounted for 38 percent.
Citibank head of consumer lending Jacqueline Nissen identified that the two most important factors for using credit were the interest rate and ease of the application process.
While Nissen said that more individuals were taking out personal loans because of the savings that could be found, brand was the least important factor in doing so.
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