Tell us about what you prefer in your credit card

[bababooey89]

Hi PersonalFinanceIndia readers,

Am looking for help for my research on credit cards.

In return, I promise to respond any query that you have on credit cards in India. - You can tag/ DM me for these, or ask to answer.

Credentials - You can gauge based on advice, would just say that I create financial products as a job since over half a decade. Looking to know more about credit card preferences of us indians.

https://docs.google.com/forms/d/e/1FAIpQLSehgy_h04Th96gdE-eeYTrsEFwU8Gac9vfAHD_hP7Y9YdGjZA/viewform

 

[allehn]

@bababooey89 filled the survey.

 

[bababooey89]

@allehn Thanks a lot!

 

[jameseverett59]

@bababooey89 Submitted my response.

 

[bababooey89]

@jameseverett59 Thank you!

 

[dariusstyl]

@bababooey89 Decent form but the bank with 2% and 4% interest is non realistic scenario. Are you trying to gause risk appetite of the customer via this? Also the choice of cards could have been improved

 

[bababooey89]

@dariusstyl It is actually. Industry average is 42% p.a. just that since people pay it every month they don't realise it much.
But yes, the idea is to see what people choose to trade off.
Will DM you to check on the choice of cards.

Thanks for the feedback.

 

[dariusstyl]

@bababooey89 Feel free to reach out mate. The interest rate was used along with average monthly balance...confused it with the interest rate provided by the bank instead of the late fee interest rate. It's a reasonable assumption.

 

[connie2777]

@bababooey89 Done

 

[debzy]

@bababooey89 Hey bro, i am interested in knowing the findings from this research

 

[bababooey89]

@debzy I will post this weekend. Sorry for the delay.

 

[bababooey89]

@debzy shared here -

https://www.reddit.com/r/personalfinanceindia/comments/xk43n9/_/kbt1i8i

 

[waleli]

@bababooey89 Please post the findings

 

[bababooey89]

@waleli I will post this weekend. Sorry for the delay.

 

[bababooey89]

@waleli shared here

https://www.reddit.com/r/personalfinanceindia/comments/xk43n9/_/kbt1i8i

.

 

[bababooey89]

Thanks folks for responding earlier. I realised I dropped a ball by getting caught up in the work on this. Will share the findings soon. Mostly by the weekend.

Awfully late, but hey better late than never.

 

[bababooey89]

Sharing the summary of responses here, there were 22 responses totally, so take them with a spoon of salt, 19 of these were credit card holders.

Key findings

1. Most (66% of folks) People didn't care about interest rate of credit card at all. Sounds rational in hindsight.
2. No body cared about safety as a feature (on a later study it was found that it's considered hygiene and as a given in credit cards)
3. Among the propositions the group was divided between simplicity with no fees vs premium rewards with some fees
4. The respondents who had credit card, nearly half had free cards, and rest had a card with a fee (roughly equally divided in 200-1500 range. 1 had >3K annual fee card)
5. Among the preferred propositions , the respondents were split on lounge and fees - people prefeered 10X merchants and 0.5% reward proposition at 500/- fees over lounge access. OR 1% reward everywhere with lounge access and no fee (no accelerated rewards)