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One card fits all? Exploring the incidence, intensity, and extent of credit card use in Canada (1999–2019)

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  • Khan Jahirul Islam

    (The University of British Columbia, Okanagan Campus)

  • Julien Picault

    (The University of British Columbia, Okanagan Campus)

Abstract

The effects of credit card usage on well-being depend on factors determining its usage, repayment habits, and responsible utilization. Although international literature extensively covers credit card usage, a notable gap exists in Canadian research, where no comprehensive analysis of credit card debt with a representative Canadian sample has been conducted over an extended period. This study utilizes Statistics Canada’s Survey of Financial Security to investigate the determinants of the incidence, intensity, and extent of credit card usage between 1999 and 2019. Education, income, and assets are identified as significant determinants, with their impact evolving over time. Most Canadian households hold one or two credit cards, while family budgeting, financial expectations, stock market investment, and bank savings are significantly associated with usage intensity. Regional disparities exist, with certain provinces exhibiting higher credit card usage. Average credit card debt doubled between 1999 and 2019. Findings emphasize the need for comprehensive policy measures to promote responsible credit card usage, addressing income, gender, and regional disparities while prioritizing financial literacy, debt management resources, and strengthening credit card industry regulations.

Suggested Citation

  • Khan Jahirul Islam & Julien Picault, 2025. "One card fits all? Exploring the incidence, intensity, and extent of credit card use in Canada (1999–2019)," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 30(1), pages 1-28, March.
    • Handle: RePEc:pal:jofsma:v:30:y:2025:i:1:d:10.1057_s41264-024-00298-0
    DOI: 10.1057/s41264-024-00298-0
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