Students’ Credit Financial Knowledge Gap And Potential Credit Card Abuse

Proceedings of The 5th International Conference on Advanced Research in Management, Business and Finance

Year: 2022



Students’ Credit Financial Knowledge Gap And Potential Credit Card Abuse

Ketsia Lorraine Motlhabane, Tumelo Godwill Motlhatlhedi



The purpose of the study was to explore the stimulus, knowledge gap and benefits expected from credit card usages among university students. A qualitative method was adopted, followed by interviews of ten (N=10) students, from a rural university campus in North West, who maintained credit card usage. The responses were grouped according to themes and then analysed. Few students participated in the study while others were reluctant to discuss money matters, yet those who are in financial distress suffer in silence.  The research concluded that students are least informed of credit card risk and rewards; thus, exposed to potential abuse and overspending beyond their means and affordability. Ignorant to late or non-payment consequences was evident, as students admit to paying debt when they or their parents have enough money to do so. Sadly, such behavior would cause material damage to their credit profile and their future credit access.

The findings suggest a need for banks to be upfront with critical information in their marketing and branding to help students make informed financial decisions, and thus minimize credit default. Supporting educational programs that increases finance literacy could allow Banks to foster lasting relationships with the student clientele including a period when they participate actively in the country’s economy.

Keywords: credit card access, credit finance education, knowledge gap, students credit abuse.