What factors are influencing credit card customer’s default behavior in China? A study based on survival analysis

Abstract

Credit card has entered a rapid development stage in China. In this paper, we take Chinese credit card customers as the research subject. Based on the COX proportional hazards model, we study the impact of Chinese credit card customer’s diversity, independence and social factors on credit card default by researching demographic characteristics of credit card applicant, credit card customer behavior data, macroeconomic environment data and customer’s social capital data. We categorize the consumer behavior data into online and offline data to explore the impact of the expansion of Internet online transactions on credit card defaults. We find that credit card default is not related to the amount of credit card customer’s income, but significantly to the stability of income.