Differences in Credit Card Use Between White and Hispanic Households

Abstract

This study uses the 2013 U.S. Survey of Consumer Finances dataset to investigate differences in credit card use between Hispanic and White households. The sample includes 3,784 households, with 3,165 households headed by a White individual and 619 households headed by a Hispanic individual. The results show that the factors related to credit card use differ for the two groups. Risk tolerance, marital status, and education are significant in explaining credit card use for White, but not Hispanic, households. Income is significant in explaining credit card use among Hispanic, but not White, households. When accounting for race/ethnicity only through a dummy variable, researchers may be missing a part of the puzzle in exploring racial/ethnic disparities in financial well-being.