Factors Affecting Customer’s Preferences in Selecting Credit Card in Bangladesh

Rashel Sheikh, Md. Faruk Hossain, Kazi Zahirul Islam


This paper focuses on the different factors that affect the customer’s preference in selecting credit cards in Bangladesh. More than three hundred and fifty credit card users are taken as a sample from the south region of Bangladesh of different banks. In this study the most important influencing factors are discount and reward, maximum credit limit, loan payment system and loan processing system to the users of credit card. One way ANOVA test was used to test the significance between different factors.  KMO and Barlett’s test was also used to measure sampling adequacy and to analyze the strength of associations among different variables. Other influencing factors are annual charge, interest rate on unpaid amount, accessibility, validity period, loan payment time, different favorable terms. ‘Interest rate’ is the most critical factor in this research that affects the customer preference greatly in selecting credit cards. The interest rate is as high as thirty to forty percent annually. Even interest is charged daily basis on the unpaid amount. Annual charge on credit card is also high and on an average difficult to avoid.

Keywords: Credit card, customer’s preference, principal factors, card holder, grace period, Bangladesh.

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ISSN (Paper)2222-1905 ISSN (Online)2222-2839

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