Behavioral intention, personality and consumer credit use

This paper examines how behavioral intention, combined with risk tolerance, self-defined financial confidence, and self-control, influences consumer credit usage. Grounded in the theory of planned behavior – which suggests that behavioral intention is the direct precursor to actual behavior – our study explores the moderating effects of risk tolerance, self-defined financial confidence, and self-control on behavioral intention to determine which individuals are more likely to utilize consumer credit among those intending to do so. Using a combination of survey and bank register data, we find that both higher risk tolerance and increased self-confidence are associated with a greater likelihood of taking on consumer credit, while self-control does not significantly moderate the relationship between behavioral intention and consumer credit behavior. Furthermore, we observe that gender differences in financial behavior are notable: men who report high confidence and an intention to use consumer credit tend to accrue more consumer credit, whereas higher self-control in men is linked to reduced credit use. Additionally, although both behavioral intention and higher income are positively associated with increased consumer credit use, stronger self-control in financial activities appears to mitigate this effect. Our study adds to consumer credit research by revealing the complex interplay between behavioral intention, risk tolerance, self-defined financial confidence, and self-control in consumer credit behavior.