De Guia, Barrion, Tarcelo

INTEREST RATE and the NUMBER OF CREDIT CARD HOLDERS of
DIFFERENT COMMERCIAL BANKS in LEMERY and BAUAN, BATANGAS:
BASIS FOR SWOT ANALYSIS and STATEMENT of IMPROVEMENT of
CREDIT CARD POLICIES
A Thesis
Presented to
The Faculty of Senior High School Department
Our Lady of Caysasay Academy
Taal, Batangas, 4208
In Partial Fulfillment
of the Requirements for Research II
By:
De Guia, Charisse Aileen D.

Barrion, Joshua Mathew B.
Tarcelo, Mike Angelo B.
March 2018
APPROVAL SHEET
This thesis entitled, “INTEREST RATE and the NUMBER OF CREDIT
CARD HOLDERS of DIFFERENT COMMERCIAL BANKS in LEMERY and
BAUAN, BATANGAS: BASIS FOR SWOT ANALYSIS and STATEMENT of
IMPROVEMENT of CREDIT CARD POLICIES” prepared and submitted by
CHARISSE AILEEN D. DE GUIA, JOSHUA MATHEW B. BARRION, AND MIKE
ANGELO B. TARCELO, in partial fulfilment of the requirements for Research II,
has been examined and recommended for approval and acceptance for Oral
Examination.
MARGARITA M. PEREZ
Thesis Adviser
PANEL OF EXAMINERS
Approved by the committee on Oral Examination with a grade of _____________
Gloria M. Candelaria
Chairman
Joan C. Perez Francis B. De Castro

Member Member
Approved and accepted in partial fulfilment of the requirements for Research II.
Virginia I. Estacio
COO/Principal
___________________
Date
i
ACKNOWLEDGEMENTS
This research study would not be possible without the help of the following
people/establishments. With this, the researchers would like to extend their utmost
gratitude to the following:
Our Lady of Caysasay Academy, spearheaded by our COO, Ms. Nenette
Estacio, upper bed vice principal, Ms. Yolanda Adalin, and Senior High
Coordinator, Sir. Eugene Punzalan, for their unwavering support;
Ms. Mharj Perez, our Research II teacher/adviser, without whom this would
not be possible, for her endless help and guidance throughout the course of the
study;
Ms. Wendy Marquez, for our topic approval and for giving her expertise that
had been more than helpful, and Ms. Joan Perez, our statistician, for validating our
questionnaires;
Ms. Gloria M. Candelaria, Ms. Joan C. Perez, and Mr. Francis B. De Castro,
for reviewing the paper and for giving suggestions that helped the researchers
make the necessary changes for the improvement of their study;
The Researchers would also like to thank various commercial banks who
have entertained our presence namely East West Lemery and Bauan, BPI Lemery
and Bauan, PSBank Lemery and Bauan, RCBC Lemery and Bauan, Chinabank
Lemery and Bauan, PNB Bauan, Security Bank Lemery, and Land Bank Lemery;
the bank managers who have provided careful consideration and service in
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accordance to our research study, and especially the Credit Card Holders who
have agreed to play a major part of our study;
We would also like to acknowledge the following people for the best
outcome of our research:
Sister Rosie for allowing us to stay at the convent when we most needed to,
Our parents and family for allowing various outdoor activities related for the
data gathering; Rose, Angel, Michelle, Nicole, James, Clarize, Lara, Bryan and
George for helping us put together the foundation of our research study;
And lastly, our Almighty Father, for blessing us with the courage and
wisdom to fulfill this research and for equipping us with the necessary skills crucial
to the accomplishment of the story.
C. A. D. D.
J. M. B. B.
M. A. B. T
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DEDICATION
Throughout the course of this research, I have been guided and motivated
by people who remain close to my heart. These people helped me persevere and
pushed me to finish this study. With this, I dedicate this paper to:
The Almighty Father, the Alpha and the Omega, our source of passion and
wisdom, for blessing me with the capability to understand what I ought to know,
and for surrounding me with blessings that help me grow;
My mother, who made me who I am today, for her unconditional love and
support, and for being the person who knows me better than I know myself;
The whole Dela Luna Family, Tatay, Ate Joy, Tita Wata, Tita Nora, Tita Gigi,
Tito Andy, Tito Dennis, Tito Allan, Tita Mildred, Tita Ana, Ate Aimee, Ate Tin,
Trisha, Gelo, Anton, John, Jamer, and AJ, for being my number one supporters;
Ms. Mharj, for her hands-on approach, for helping us in times of need, and
for never giving up on us;
My groupmates, Josh and Tarcy, who became like family, for their
cooperation and attentiveness, their trust in me as their leader, and for sticking
around during our late night, last-minute revisions;
My friends, who became the backbone to my confidence, without whom I
would’ve never survived the making of this study;
And to every researcher out there who struggled to finish their work, for not
giving up on yourselves and pursuing your dreams. Char
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DEDICATION
I would like to extend my deepest gratitude to the following who have made
it possible for the success of this research study.
To my family, who have fully supported me in this research mentally and
likewise financially to be able to provide aid in any possible situation that may
happen.
My rowdyruff research family for helping make this research a success,
Mike Angelo B. Tarcelo, especially our leader, Charisse Aileen D. De Guia,
unending efforts to fulfil a more memorable and life changing study, as without
them, their cooperation, and hard work all of this wouldn’t be possible.
To my adviser/research 2 teacher, Ms. Mharj Perez, who never gave up on
our topic amidst the many hindrances that us researchers have faced, who gave
us the proper lessons and learnings to create such a research study, and who
believed in our capabilities and knowledge to fully defend our topic.
And to my friends/classmates who gave their utmost support and kind words
that have help me build up confidence throughout this unforgettable adventure.
Above anything else, I’d like to thank God for guiding me throughout the
duration of this journey; in helping attain the confidence to answer all possible
questions, for the patience he allotted in the process of this research, and for
helping us despite the many hindrances that have occurred.
Josh
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DEDICATION
I would like to extend my gratitude to all the people who contributed to
make this research possible.
My Mother, for her love, support and understanding likewise, words of
encouragement given to me to pursue this study.
My partners, Charisse and Joshua who actively cooperated in order to
finish this study.
Our Adviser/Research Adviser, Ms. Margarita Perez, thank you for the
unwavering guidance and support. This research will not be possible without your
help.
Above all, thank you Lord, I may not be a perfect son to you, but you held
my hand through my ups and downs.
Tarcy
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ABSTRACT
Title : Interest Rate and The Number Of Credit
Card Holders Of Different Commercial Banks
In Lemery and Bauan, Batangas: Basis For
SWOT Analysis and Statement Of
Improvement Of Credit Card Policies
Researchers : De Guia, Charisse Aileen D.
Barrion, Joshua Matthew B.
Tarcelo, Mike Angelo B.
Total Number of Pages :
Type of Document : Research Paper
Name and Address of Institution : Taal, Batangas 4208
Number of Respondents : 13 Commercial Banks/ 105 Credit Card
Holders
Summary:
The study will determine the interest rates and number of credit card holders
in different commercial banks in Lemery and Bauan, Batangas.
1. What are the interest rates of different banks in Lemery and Bauan,
Batangas?
2. How many credit card holders are there for the months of August to
December 2017?
3. Is there a significant relationship between interest rate and the number of
credit card holders?
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4. What benefits will the commercial banks and credit card holders receive
from the SWOT analysis and statement of improvement of credit card
policies?
Hypothesis
The researchers posted the hypothesis:
Ho: There is no significant relationship between the interest rate of
commercial banks and the number of credit card holders
Descriptive type of research was used to describe the relationship between
the interest rate and the number of credit card holders. The researchers gathered
the interest rates and the number of credit card holders of various banks and used
an eighteen-item survey questionnaire distributed to different credit card holders
in Lemery and Bauan, Batangas.
Findings of the Study
Based on the data collected, the following findings were obtained:
1. There is a difference between the interest rates of credit cards in different
banks. BPI offers credit cards with 3.19%, East West Bank, Land Bank of
the Philippines and Philippine National Bank all offer an interest rate of
3.25%, Chinabank, Philippine Savings Bank, and Security Bank all have
3.5% as their interest rates for credit cards, while RCBC offers 3.54%.
2. Bank 1 from Bauan had the most number of credit card holders, with a total
of 158, while Bank 13 from Bauan had the least number of credit card
holders, with only 5 credit card holders.
viii
3. The interest rate obtained a computed r-value of -0.703, verbally interpreted
as moderate negative correlation. It obtained a computed p-value less than
0.03 level of significance that led to reject the null hypothesis. Thus, the
interest rate was significantly related to the number of credit card holders.
4. The proposed SWOT Analysis and Statement of Improvement of Credit
Card Policies might be helpful to the different banks and credit card holders
in such way that this would serve as a guide to both.
Conclusions
Based on the findings of the study, the following conclusions were
produced.
1. Majority of the banks had high interest rates (from 3.50% - 3.99%) although
there is only a slight edge to those who have moderate interest rates (from
3.00% - 3.49%)
2. Credit cards with lower interest rates have more card holders than those
with higher interest rates since customers are more inclined to avail credit
cards with lower interest rates. Other factors, aside from interest rates, also
play a vital role in the consumers’ choice of credit card.
3. There is a significant relationship between interest rates and the number of
credit card holders of different commercial banks
4. The SWOT Analysis and Statement of Improvement of Credit Card Policies
would guide the credit card holders and banks as these are drawn from the
card holders’ preferences and opinions.
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Recommendations
After careful analysis and extensive deliberation, the researchers
have concluded the following recommendations that may be considered:
1. The general public who would like to avail credit cards in the near future
may use the results to foresee or contemplate from different bank interest
rate options and further helping their decisions in choosing their credit cards
in preferred banks.
2. The different commercial banks may apply the researchers gathered results
so that they may formulate improvements throughout their system including
services based on the consumers preferred choices. The researchers
recommend taking a look at the output so that the banks could identify the
strengths, weaknesses, opportunities, and threats, that affect
customers’/clients’ decisions.
3. The credit card holders who may use the given information to find a suitable
bank of their choice for their money to seek refuge in and further locating
the services they need. The researchers recommend to carefully observe
the conclusions drawn throughout this research to better identify what deals
to engage in.
4. Future researchers may be able to use the data gathered and further
conduct a similar study or expand and regenerate a more accurate result.
They may use a different scope, possibly including a wider array of banks
coming from different locations. They may also contact or go to the main
office/headquarters of each bank to assure that the data would be accurate
and precise
x
Table of Contents
TITLE PAGE -
APPROVAL SHEET i
PANEL OF EXAMINERS i
ACKNOWLEDGEMENT ii
DEDICATION iv
ABSTRACT vii
TABLE OF CONTENTS xi
CHAPTER
I: THE PROBLEM AND ITS BACKGROUND
Introduction – char 1
Conceptual Framework – josh 4
Research Paradigm – josh 5
Statement of the Problem – char 6
Hypothesis – char 7
Scope, Limitations and Delimitation – josh tarcy 7
Significance of the Study – tarcy 8
Definition of Terms – josh 10
II: REVIEW OF RELATED LITERATURE AND STUDIES
Conceptual Literature 12
Related Studies 18
Synthesis 20
III: RESEARCH METHODOLOGY
xi
Research Design 24
Respondents of the Study 25
Data Gathering Instrument..................................................................... 25
Data Gathering Procedure…………………………………………………. 26
Statistical Treatment of Data………………………………………………. 27
IV: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 28
V: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary 47
Findings of the Study 48
Conclusions 49
Recommendations 49
BIBLIOGRAPHY 51
APPENDICES
A. Survey Questionnaire 53
B. Letter to Bank Managers of Lemery 55
C. Letter to Bank Managers of Bauan 56
CURRICULUM VITAE 57
xii
List of Tables
Table 1: Interest rates of different commercial banks in Lemery and
Bauan, Batangas 28
Table 1.1: Level of Interest Rates of Different Commercial Banks in
Lemery and Bauan, Batangas 29
Table 2: The Number of Credit Card Holders from Different Banks
and Branches from Lemery and Bauan, Batangas from August to
December 2017 31
Table 3: Relationship between Interest Rate and the Number of
Credit Card Holders of Different Commercial Banks in Lemery and
Bauan, Batangas 33
xiii
List of Appendices
Appendix A: Research Questionnaire 53
Appendix B: Sample of Letter Request 55
xiv
List of Figures
Figure 1: Research Paradigm 5
xv
CHAPTER I
THE PROBLEM AND ITS BACKGROUND
Introduction
Owning a credit card is an obligation most people look forward to sometime
in their lives. With this, come many responsibilities one must fulfill to remain above
bad debts. However, it takes one to wonder why some individuals pay different
amounts of interest rates for credit cards; some credit card holders may pay even
higher or lower than others, for the same amount and time of purchase.
Nevertheless, it is a belittling question some tend to turn away, not knowing why
individuals prefer to inquire and acquire for credit cards in banks which offer
different rates.
There are signs and reasons why Filipinos are leaning toward credit cards.
There is the convenience and security of not having to carry huge bundles of cash;
and there is the liability, where only the owner can make use of his credit card.
Consumers who pay with a credit card focus on the benefits of a purchase, while
those who pay with cash concentrate on its cost (Chatterjee, P. & Rose, R. 2011).
It's well established in the field of behavioral economics that people who
use credit cards are unconsciously willing to spend more than those who pay with
cash, a phenomenon known as the "credit card premium." In addition, in a study
conducted by Drazen Prelec and Duncan Simester of the Sloan School of
Management at MIT in 2000, they concluded that subjects paid more when they
were instructed to use a credit card rather than cash because debt is the most
1
aggressively marketed product on the planet. Furthermore, using credit cards has
the consequential interest rates, which means consumers literally spend more
since they pay for the purchases and the interest rates. Due to these, it is important
to know which banks offer the best from of credit, so consumers can ensure that
their money is spent well.
Aside from having different credit card offerings, the number of credit card
holders also varies from bank to bank. The researchers wondered why some
banks have a significantly greater number of credit card holders among others,
even despite having similar interest rates. They sought to determine whether the
interest rates of different banks affect its “attractiveness” that urges consumer
creditors to apply for a credit card. Since there are different kinds of credit cards,
(gold, platinum, silver, etc.), the study will only include the simplest and most basic
form of credit card which is offered by all commercial banks. The study will also
take into consideration other factors that affect the choice of credit card of the
consumers.
Credit cards are becoming more and more generic in consumer spending.
These pieces of plastic provided by the banking industry are an emerging source
of household credit in the Philippines. There are approximately 7 million actual
holders of credit cards in the Philippines and the annual growth of the credit card
industry is about 5% (Credit Card Association of the Philippines, 2015). In a study
conducted by Winecito L Tan, a staff member of the Department of Economic
Statistics, of the Bangko Sentral ng Pilipinas (BSP), it was mentioned that based
on the results of the nationwide “Consumer expectations survey” for the first
2
quarter of 2008, about 3% of the 5,000 sample household respondents have a
credit card and around 4% expect that a household member will apply for a credit
card within the next 12 months. The numbers indicated are the results of banks
which stepped up efforts to promote their cards and widen their respective
subscriber base (Daquiz, M. S. business world research. 2007). Credit cards
replaced debit cards as the ‘most preferred payment form’ in a survey conducted
by TSYS (US Consumer Payment Study 2016). These findings established credit
cards as a common staple in the lives of Filipino consumers.
The interest rate, also known as the “finance charge,” is the chief target of
monetary policy. The ultimate determinant of the overall effect of changes in
interest rate primarily depends on the consensus attitude of consumers as to
whether they are better off spending or saving in light of the interest rate change.
It is the money gained by the bank for lending you finances, usually monthly. This
is the obligatory amount on top of the principal amount of purchase that is paid
when using credit. In some cases, consumers are not able to meet the due
payments, which results to the piling of interest rates on top of the principal, which
can lead to the pool of debt of the consumer (pinoymoneytalk 2014).
There are numerous studies surrounding the relationship between interest
rates and bank selection, and of the relationship between credit card rates and
consumer spending. Nevertheless, the researchers experienced dearth of data
regarding the relationship between interest rates of banks and the number of credit
card holders. In this regard, the BSP continues to lobby for the establishment of a
central credit information system to improve discipline in the credit markets (Tan,
3
W. 2007) It is for this reason that the researchers aim to contribute to the studies
that are being conducted by the BSP. The provision of sound consumer debt data
that would include information on the creditworthiness of banks will also be seen
in the course of the research. This study will provide answers to frequently asked
questions of consumer creditors and will shed some insight on how to be a smart
credit card holder. There are also only a few credit card policies around that are
available because of confidentiality, and this study will offer improvement
strategies of credit card policies that can be accessed by anyone. This research
will also serve as a basis for future researchers regarding the same topic if they
wish to replicate the study.
Conceptual Framework
The relationship between the interest rates and the number of credit card
holders in different commercial banks in Lemery and Bauan, Batangas is a fairly
new subject of research. Due to this, there are no concepts that are directly similar
to the topic on hand. Thus, the researchers gathered the following concepts about
the variables which hold comparable information that may be of use and
importance to this research study.
According to GOBankingRates, “Banking interest rates vary in different
regions and cities based on factors such as the local and global economy,
competition from other financial institutions and public interest.” This statement
would be able to help the researchers identify the possible answers as to why
interest rates and the number of credit card holders secured in different
commercial banks vary and what effects do these interest rates take up on.
4
As WalletHub stated, “The number of credit cards in circulation and the
number of people using them are crucial metrics when it comes to understanding
both the payments landscape and consumer preferences”. The declaration
provided by WalletHub would offer assistance in helping the researchers figure out
the reasons why credit card holders are the ones being directly affected by the
fluctuating and diverse interest rates of different commercial banks. This would
broaden the knowledge of the researchers in helping them find the probable
answers to give reason to these frequently asked questions.
Based on fivecolleges.edu, “The purpose of this policy is to communicate
eligibility, usage and payment of expenditure requirements for the corporate credit
card”. With this statement, the researchers will be able to determine how credit
card policies affect the credit card holders along with the interest rate. This will be
a reliable asset in figuring out the processes involved in choosing a bank in regards
with the factors that would affect it.
INTEREST NO. OF CREDIT

RATE CARD HOLDERS
SWOT ANALYSIS AND

STATEMENT OF
IMPROVEMENT OF
CREDIT CARD POLICIES
Figure 1. Research Paradigm
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Research Paradigm
The research paradigm used by the researchers consists of a dependent
variable, an independent variable and an output. The independent variable of the
study, which is the interest rate, contains of the variants that will greatly influence
the study. When it changes, it will affect all the other parts of the research.
Meanwhile, the variable being affected, the number of credit card holders, will be
the main component in which the researchers will be able to analyze its result, or
its changes brought about by the independent variable. And lastly, the output or
the SWOT analysis and the statement of improvement of credit card policies, will
be answering the researcher’s questions and most importantly provide answers to
the problem addressed in the study. Through this, they could finalize their findings
and give their conclusions based on the results of the study and provide helpful
strategies that can help banks improve their policies in order to attract more
investors and credit card holders.
Statement of the Problem:
The study will determine the interest rates and number of credit card holders
in different commercial banks in Lemery and Bauan, Batangas.
5. What are the interest rates of different banks in Lemery and Bauan,
Batangas?
December 2017?
6
policies?
Hypothesis:
There is no significant relationship between the interest rate of commercial
banks and the number of credit card holders of different commercial banks in
Lemery and Bauan, Batangas.
Scope, Limitations, and Delimitations
The focus of the study is to determine whether the interest rate of different
banks has an influence over the consumers’ choice of credit cards. The study
revolves around the commercial banks in Poblacion, Lemery, Batangas and
Bauan, Batangas, and the number of credit card holders of the different banks
during the months of August to December 2017.
The hindrances to be considered in the following study would be the uneven
number of creditors; the different factors the that affect the choice of credit card
(aside from interest rate), which would also be discussed during this research; and
the collection of somewhat confidential letters from the banks. This is also one of
the firsts in this kind of research, which limits the number of related literature.
This study focuses on the commercial banks who are offering credit cards,
namely, EastWest Bank (Lemery and Bauan Branch), Bank of the Philippine
7
Islands (Lemery and Bauan Branch), Land Bank of the Philippines (Lemery
Branch), Philippine National Bank (Bauan Branch), Security Bank (Lemery
Branch), RCBC (Lemery and Bauan Branch), PSBank (Lemery and Bauan
Branch), and ChinaBank (Lemery and Bauan Branch). It is for this reason that rural
banks and other banks which do not have consumer credit services are not
included. It contains only the commercial banks who offer credit cards in Poblacion,
Lemery, Batangas and Bauan, Batangas who agreed to disclose information for
the development of this study. The confidential information of each credit card
holder will not be included in this research.
Significance of the Study
The findings of this study will redound to the benefit of the majority
considering that credit card plays an important role in a person’s daily life
nowadays.
GENERAL PUBLIC. This research is open to the general public. It will be helpful
to those who do not know the uses of credit cards. It may also help them be
introduced to this kind of existing service. This will enable the general public to be
aware on the kinds of credit cards that different banks offer and help them decide
in choosing their desired kind of credit card. This may give them information on
how to choose a bank properly. This would also be a great help to identify if a
certain bank matches the consumers’ preference. Furthermore, it will serve as an
eye opener for false information about other people opinions and thoughts of a
certain bank. The study would provide insights and solutions to the frequently
asked questions. This study will also be helpful because it will explain why a certain
8
bank is more in demand among others. Thus, this research will uncover the critical
areas in banks about credit card that many researchers failed to identify
BANKS. This study is beneficial to banks because it aims to determine which
factors affect the consumers’ choice for credit card. It may help the banks when
identifying the things that should be eradicated in terms of the service they offer.
Banks might also create a new service that matches with the consumers’ choice.
This research will also be helpful in recognizing advantages and disadvantages of
a certain service in a bank.
CREDIT CARD HOLDERS. This will also be advantageous to credit card holders
because it would allow them to choose the best bank for their money’s worth.
People should be practical, and this research may help the credit card holders
save money. The credit card holders are fond of a situation where in both the
consumers and the bank will benefit, and through the help of this research, it will
be easier for them to identify a bank that is suitable for them. Time will be used
properly for a reason that it will not be hard for them to locate the service they
desired for.
FUTURE RESEARCHERS. For future researchers, this would support their study
since this will provide first-hand data. This would serve as a basis for the probable
replicability of a certain topic which they wish to be solved. The future researchers
may surpass this research and make improvements. They would be able to study
a wider or different scope than this and may use the same methodology or data
gathering procedures to regenerate results.
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Definition of Terms
For the better interpretation of the study, it is constructive to know the
important terms used in the study. Here are the theoretical and operational
definition of terms:
CREDIT CARD. Google Dictionary defined credit card as a payment card given to
users to be able to settle their accounts and pay for an individual’s goods and
services. In correlation to this, it is also an instrument used to temporarily pay for
their purchases with a consequent interest.
COMMERCIAL BANKS. A bank that offers services to the public and to
companies. (Google Dictionary) In this research, the commercial banks only
encompass those that offer credit card to consumers.
CREDIT CARD POLICIES. These are the guidelines that spell out how to decide
which customers are sold on open account, the exact payment terms, the limits
set on outstanding balances and how to deal with delinquent accounts.
(https://www.entrepreneur.com/encyclopedia/credit-policy)
CONSUMER CREDIT. It is a debt that a person incurs when purchasing a good or
service. Consumer credit is also known as consumer debt. In this study, Consumer
credit will only include purchases obtained with credit cards.
(http://www.investopedia.com/terms/c/consumercredit.asp)
HOLDER OF CREDIT. The individual or business who obtained the debt at a
discounted price in order to collect payments at a subsequent time.
10
INTEREST RATE. The proportion of a loan that is charged as interest to the
borrower, typically expressed as an annual percentage of the loan outstanding. In
this study, it is used as a factor that credit card holders consider in the choice of
banks. (Google Dictionary)
ORIGINATOR OF CREDIT. The person or company who originally extended the
credit
SWOT ANALYSIS. According to Albert Humphrey, who led a research project that
lead to discovery of the analysis, SWOT analysis is a planning tool used to
understand the strengths. Weaknesses, opportunities, and threats involved in a
project/business.
11
CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter presents literature and studies which are relevant to the study.
The study expounds articles, researches, and sources which relay their own idea
about the topic.
Conceptual Literature
Given that the study focuses on the effects of interest rate on the number
of credit card holders, the researchers had come up with readings that hold similar
qualities and ideas to this study. Such readings include interest rate, credit card,
and credit card policies.
Interest Rate. In a finding by JPMorgan Chase Institute (2017), it was
revealed that interest rates have a meaningful influence on our financial behavior.
It was said that many consumers alter their spending habits based on the change
of rates. Researchers found that lower rates on credit cards triggered higher
spending. Seeing that low-income households are more likely to fall into debt, it
emphasizes the need to be aware of the interest charges in one’s credit card
transactions.
However, Symons (2015) mentioned that consumers often pay little notice
to credit card interest rates when comparing the market. In this sense, consumers
apply for a credit card on the basis that it represents good value as a payment
system, but they end up with a decidedly poor value debt product without having
ever given sufficient consideration to interest rates.
12
Different measures of credit card interest rates offer different insights into
whether those rates are fair and appropriate, or whether, as Koch (2015) put it,
people are getting cheated at every step on the credit card journey.
Lindberg (2015) defined credit card interest rates as the percentage of gross
interest paid on balances outstanding. He also stated that the effective average
interest rate has declined relative to the headline rate on these products.
Furthermore, owners and balances that are under lower interest rates have a
higher percentage than those with higher interest rates.
It was stated in the Household, Income and Labor Dynamics (HILDA)
survey in Australia (2015) that low-income households have more credit card debt
relative to their incomes and pay more in credit card interest relative to their
incomes than high-income households.
On another note, Interest charged on credit cards varies widely depending
on the type of card and provider. According to an August 2015 search of
comparison website Mozo, there is a 15.5% gap between the lowest rate card, a
Quay Credit Union Visa Credit Card with an ongoing purchase rate of 7.99%, and
the highest rate card, a GE Money MasterCard at 23.5%. The interest rates of
credit cards also differ greatly based on the type of credit card as said by Anna G.
Cards with high rewards and benefits would naturally bear higher interest rates.
Contrarily, according to Kirkland (2015), their consumer survey suggested
that 64% of people do not even know their credit card interest rate, up from 48%in
2013, suggesting a 'growing problem,' signifying that consumers aren’t as
13
concerned on credit card interest rates as compared to interest rates of other
lending products.
Michael Wernick (2011), said that interest rate only has that much effect on
debt when credit card holders fail to pay off their monthly balances.
Congressman Winston T. Castelo of the House of Representatives
proposed the House Resolution No. 474 on September 2010 which cited a
resolution urging the House committee on Banks and Financial Intermediaries to
look at the rates of Interest, penalties, and charges being collected or demanded
by banks and credit card companies from their cardholders.
Credit Card Holders. According to Mickenbecker (2015), credit cards are
multifaceted products, with features that have a significant bearing, real or
perceived, on the value proposition for a particular consumer.
The Australian Bankers Association (2015) submitted that credit cards are
a more complex product that other loan products for its interest undergo changes
from time to time.
As stated by Foscht et al., (2010), credit cards have greatly become a
convenient method of expanding purchasing power.
However, Michelle V. Remo in an article in Philippine Daily Inquirer (2009)
said that all over the world, credit cards carry high interest charges. If one is not
careful, he could find himself sinking in a financial quicksand of debts. Credit cards
are not an easy business. It is manpower intensive and needs a high level of
14
automation. It is a business that has high startup costs and needs a big scale to
make sense and return some profit.
Entrepreneur Philippines (2009) said that credit cards are a convenient
medium of payment for purchasing good or services. Instead of asking for cash,
merchants accept credit cards as payment and the purchaser pays the credit card
company at the end of a regular monthly billing period, allowing the cardholder to
better manage his or her money.
According to Philippine Graphic (2009), an unwitting customer is sweet
talked into getting a credit card. Convenience, the ease of paying for purchases
through credit, motivates them to expanded with a “bit” of interest.
On the other hand, Graphic (2009) also reminded that the threat of credit
card debt has become so real in the lives of Americans that associated Press writer
Dan Seymour wrote, based on a poll by the national association for business
economics, that the combined threat of loan defaults and excessive indebtedness
has overtaken terrorism in the middle east as the biggest short-term threat to the
us economy.
Devlin et al. (2007) found that the older the respondents, the more likely
they are to possess one or more credit cards
The Peoples’ Journal (2006) stated that it is the easiest way or medium to
buy goods and pay for services without emptying your pockets or your wallets. This
is through the use of credit cards.
15
According to creditrepair.com, credit card holders are more subjected to
falling behind their due payments. It shows how card holders can significantly lower
their payments by lowering the interest rates. In fact, lowering the interest rates by
only a few points may be a huge difference between not being able to make
payments on time and having a little extra money to spare after paying your bills.
Credit Card Policies. The Manual of Regulations for Banks (2015) stated
that Bangko Sentral ng Pilipinas (BSP) shall foster the development through
innovative products such as credit cards under conditions of fair and sound
consumer credit practices. The BSP likewise encourages competition and
transparency to ensure more efficient delivery of services and fair dealings with
customers.
Finance charges, the amount of finance charges in connection with any
credit card transaction shall refer to interest charged to the cardholder.
Deferral charges, the bank and the cardholder may, prior to the
consummation of the transaction, agree in writing to a deferral of all or part of one
or more unpaid installments and the bank may collect a deferral charge which shall
not exceed the rate previously disclosed pursuant to the provisions on disclosure.
Republic Act No. 10875 known as the “Philippine Credit Card Industry
Regulation Law” (2015) defined credit card limit as the maximum total amount for
purchases, cash advances, balance transfers, and finance charges, service fees,
penalties, and other charges which can be charged to the credit card.
16
Determination of Credit Card Limit; Changes Thereof - Credit card issuers shall
determine, based on the credit standing and financial capacity of the cardholder,
the credit limit to be extended to the cardholder.
Over-the-Limit Transaction. If a cardholder breaches the credit limit by a
new transaction, the subject transaction may be processed subject to the
discretion of the credit card issuer: Provided, that such fees are clearly and
prominently disclosed in the table of fees and charges.
The 5Cs of Credit “Five Cs”. Most lenders manage the risk associated with
extending credit by using the Five C's: Character, Capacity, Capital, Collateral and
Conditions. For Character it is sometimes called credit history, the first C refers to
a borrower's reputation or track record for repaying debts. The Capacity refers to
considering your other debts and expenses when determining your ability to repay
the loan. Capital refers to your net worth and in simple terms, how much you own
(for example, car, real estate, cash, and investments) minus how much you owe.
For Collateral it refers to any asset of a borrower (for example, a home) that a
lender has a right to take ownership and use to pay the debt if the borrower is
unable to make the loan payments as agreed. Condition refers to how a borrower
intends to use the money; the lender will examine consumer trends and
environmental restrictions to evaluate whether they are likely to affect the future
success of your business.
According to Aban (2013), asset size can play an important factor in the
formulation of monetary policy by its influence on the loan growth. Therefore, bank
characteristic, particularly asset size, must be recognized and considered when
17
examining and evaluating the distributional effects of monetary policy on loan
supply and ultimately, its effects on the real economy.
Yuan Li (2009), said that the effect of monetary policy on the bank lending
is stronger for banks of small size (low liquidity or low capitalization) than banks of
large size (high liquidity or high capitalization).
Related Studies
This section presents the current studies that are related to the present study.
In an article by Nelson D. Schwartz for The New York Times in 2017, he
said that when interest rates rise, credit card holders feel them first since credit
card debt is so much more expensive than other forms of credit, like a mortgage
or a car loan. When this happens, the credit card holders would be subjected to
more burden, entailing the need for lower interest rates to protect card holders.
According to Fred O. Williams in 2015, rising interest rates constitutes to a
given debt burden which will become harder to repay -- meaning it carries higher
risk for the lender. Consequently, terms of credit may tighten up, and people who
are used to low-rate offers could be cut off from cheap credit.
In accordance with the study conducted by the National Bank of Serbia
(2014), interest rate may have negative effects on the financial result and capital
of the bank caused by its changes which eventually leads to market risk.
Steiner (2014) cited that low interest rates are a driving force of the housing
bubbles. Since purchasing transactions are part of one’s daily life, revenues of
18
households and businesses try to look for credit cards which improve and increase
the ability to service debt payments through low rates.
In the Benchmarking Study carried out by Argus (2014), it estimated that
approximately 1.4 million to 1.5 million new Credit Card accounts are opened each
year in Australia. This represents around 9% of the 15.7 million accounts currently
in the market. This data provides strong evidence that credit cards had become
the most switched product in Australian banking and that consumers are willing to
shop around and that switching Credit Card type and providers is relatively easy.
A recent study by Akin, Aysan, Borici, and Yildiran (2013) analyzed the
market power of banks in the Turkish credit card market to determine whether
competition was a major factor in the credit card business. The results showed that
competition indeed affected the market status of financial institutions involved in
the credit card business. In a study considering competition as a factor in
managing the credit card business written by Demirel, Arzova, Ardic and Bas
(2013), it was revealed that the competitive credit card market environment of
Turkey forces financial institutions to enter into new businesses by using credit
card brand value and a wide point of sale network to survive in the market.
The study of Al-Jarrah (2012) focuses on how interest rate varies from
different banks. It was found that the bank’s lending, funding and investment
activities hold great influence on the rise and fall of interest rates and interest rate
risks. The short-term impact of variation in interest rate is on bank’s net interest
income, while a long-term impact is on bank’s net worth. They are also affected by
the concentration and competition in the banking market.
19
According to Scholnick, et.al. (2007), one of the main strands of research
on credit cards has been an examination of pricing issues, such as whether credit
card interest rates are ‘‘too high”. The study shows that the higher the outstanding
balances of a provider, as well as the higher outstanding balances of competitor
banks, the higher the interest rate charged on the credit card.
Synthesis
The findings of JPMorgan Chase Institute and the results of the Household,
Income and Labour Dynamics (HILDA)survey in Australia (2015) is related to the
present study because they give emphasis on the need for awareness about
interest rates on credit cards. Both revealed that consumers plan their spending
habits based on the interest rates and that low-income households are those who
are likely to fall under credit card debt. In this present study, the researchers would
also give awareness to the patrons and would consider the factors that affect the
consumers’ choice of credit cards to show the importance of these interest rates.
Moreover, in the study of Wernick, he focused on the effects of credit card rates
interest rates on consumer debt which would also be relative to the current study
since the latter aims to inform the credit card owners how important it is to be
mindful of their use of credit cards.
The studies of Symons, Koch, and Kirkland are also related to the present
study in such way that Symons and Kirkland found that little consideration is put
into interest rate while Koch highlighted the importance of knowing whether credit
card owners are getting the appropriate benefits and are not toward going to fall
into debt. The current study would also seek to change the perspective of
20
consumers towards interest rates so that they would know how much they are
affected when these rates change.
House Resolution No. 474 is connected to this study in such way that both
looks at the interest rates charged by different banks on credit cards in hops to
secure the cardholders. The difference is that the aforementioned resolution looks
at the rates, penalties, and other additional charges of banks and other credit card
companies, while this study focuses solely on the interest rates charged by
commercial banks.
The results of the study of Mozo and Anna G. showed the basis of difference
of credit cards. This is related to the study at present because it will cover the
grounds on which kind of credit card customers prefer.
The statements by Mickenbecker, the Australian Bankers Associations,
Foscht et al., Entrepreneur Philippines, and the People’s Journal are related to the
study because they have defined credit cards and gave its uses in different
perspectives. Their definitions would be used by the present study in determining
how significant credit cards are in the lives of consumers.
Remo’s article is relevant to the study because it addresses one of the
disadvantages of credit cards. This only highlights the intent of the present study
to impart information regarding the possible consequences of mismanagement of
high interest rates.
The statements of Graphic are related to the study on hand because it gave
a reason why consumers are attracted to credit cards but at the same time,
21
reminded the threats that consumers should watch out for. The present study will
seek to find solutions so that the cardholders can enjoy the benefits of their credit
cards without the possibility of falling into debt.
The study of Devlin is related because it found out who are more likely to
possess credit cards, which would serve a great deal in the present study as it will
focus on the credit card holders.
The information provided by Bangko Sentral ng Pilipinas (BSP) is related to
the study because it reveals the policies that most banks in the country follows.
The republic act no. 10875 is also relevant as it gives the lengths of credit card
charges. The study of Aban and Yuan Li also talk about the policies bank
institutions follows and how these are formed. These are essential to the present
study as it will provide statement of improvements to different credit card policies
of various commercial banks.
The 5CS of Credit is also relevant to the study as it provides information not
only to the bank issuing the card, but also to the future credit card holder. Seeing
that the study at present focuses on credit cards and its holders, the requirements
or basis of credibility for acquiring credit would provide additional support for the
research.
The study of the National Bank of Serbia is related to the present study
because it focused on the effects of interest rates on consumer debt. However,
while this study included banks and other credit institutions and was focused on
22
the risks that may arise from interest rates, the present study will only focus on
commercial banks and the effects of interest rate on the credit card holders.
Steiner’s study revealed the driving force of consumers and how credit
cards serve as a medium for transactions among holders. This is relevant to the
study in such way that both dwells with the means of consumers to pay their
purchases with credit cards and how the interest rates attract them to own different
credit cards.
The results of Argus’ study showed how credit cards continuously rise into
the market. Statistics show that many Australians prefer the use of credit cards to
pay off their purchases rather than any other financial remedy. It is fairly significant
to the study at present because both focuses on the importance of being
knowledgeable card holders since many patronize credit cards.
The studies of Akin, Aysan, Borici, and Yildiran, as well as that of Demirel,
Arzova, Ardic and Bas are relevant to the study because both tackles the reasons
for varying interest rates of credit cards and the difference on credit cards itself.
Both showed that competition plays a major role in the credit card business. The
current study would also have to deal with the factors that affect the consumers’
choice of credit card but would focus more on the interest rates, among any other
factor, and would be limited to banks being the only credit card issuing institution.
In addition to this, the study of Al-Jarrah, which talked about the factors that affect
interest rate, is related to the study for the study at present aims to determine why
different banks have different rates and credit card offerings.
23
CHAPTER III
RESEARCH METHODOLOGY
This chapter encompasses the methods and procedures utilized by the
researchers. This includes the research design, subjects of the study, instruments
used, data gathering procedure and statistical treatment.
Research Design
The research design used by the researchers to ensure association
between the evidences and the variables was a Descriptive Research Design.
According to study.com, descriptive research is a study designed to depict
certain situations accurately. To put it simply, it is about describing the people or
variables that take part in the study. The purpose of descriptive research is to
observe, describe, and document different aspects of a situation as it naturally
occurs (Polit & Hungler 1999). This involves the collection of data that will provide
an account that will help the researchers illustrate the important points surrounding
the variables of the study. According to the Oklahoma State University, descriptive
research is used to obtain information concerning the current status of a
phenomena through careful observation and documentation of present situations
to describe what exists with respect to variables or conditions in a controlled
environment, without any influence from the researchers.
The researchers intended on using this research design to accurately
describe the relationship of the variables in the study. The researchers wanted to
24
recognize the relationship between interest rates and the number of credit card
holders of different commercial banks in Lemery and Bauan, Batangas.
Respondents of the Study
The respondents of the study were the branch managers and credit card
holders who availed their cards from August to December 2017 at different
commercial banks in Lemery and Bauan, Batangas. After confiding with the
managers of the different banks, a set of questionnaires were left at the bank so
that the credit card holders may answer them in all confidence. The branch
managers and other employees served as the middlemen of the researchers to
the respondents of the study.
Data Gathering Instrument
The primary tool used for gathering data in the study was an 18-item survey
questionnaire. It was constructed by the researchers to determine whether the
interest rate affects the number of credit card holders of different commercial banks
in Lemery and Bauan, Batangas. It is comprised of two parts namely general
information and customer preference.
The first part, the General Information, includes the most basic data from a
credit card holder. It comprises the name of the bank they are secured in, the type
of card, etc. which would reveal how they choose to avail a credit card in their
respective banks. The second part, the Customer Preference, would measure the
awareness of the credit card holders on the interest rate of their credit cards and
would show the factors that affect their choice of credit card. To assure accuracy
25
and objectivity, the second part would reveal their choice of card regardless of the
bank they are in.
Data Gathering Procedure
The researchers sent a letter of request to the managers of every
commercial bank in Lemery and Bauan, Batangas who were offering credit cards
namely BDO, BPI, PSBank, LandBank, Metrobank, East West Bank, PNB,
Security Bank, RCBC, China Bank, and UCPB. The letters were noted by the
research adviser, Ms. Margarita M. Perez, and approved by the Senior Hugh
School Coordinator, Mr. Eugene T. Punzalan. The researchers were successfully
permitted to conduct the research by some of the managers of the commercial
banks. These include EastWest Bank (Lemery and Bauan Branch), BPI (Lemery
and Bauan Branch), Land Bank (Lemery Branch), PNB (Bauan Branch), Security
Bank (Lemery Branch), RCBC (Lemery and Bauan Branch), PSBank (Lemery and
Bauan Branch), and ChinaBank (Lemery and Bauan Branch).
There were two ways on how the researchers conducted the survey. First,
they interviewed the branch managers and asked about the interest rate of the
credit cards their banks offer and the number of credit card holders from the
months of August to December 2017. Second, the researchers provided the banks
with a set of questionnaires so that credit card holders who frequent the bank may
answer and supply the needed data essential to the fulfillment of the study. The
researchers also handed out questionnaires to people they know are credit card
holders who fit the criteria to be a respondent. The questionnaires were gathered
from the banks after almost 3 weeks.
26
Statistical Treatment of Data
After the researchers retrieved the data, tallying, tabulating and analyzing was
done. The following statistical treatments were used:
▫ Frequency. This was used to determine the number of banks which belong
to the same level of interest rates
▫ Percentage. This was used to determine the proportion of commercial banks
for each level of interest rate.
▫ Pearson r-moment of correlation. It was used to determine the relationship
between interest rate and the number of credit card holders of different
commercial banks in Lemery and Bauan, Batangas.
▫ T-test. It was used to determine the significant difference between the
interest rate and the number of credit card holders of different commercial
banks in Lemery and Bauan, Batangas
27
CHAPTER IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter encompasses the analysis and interpretation of data based on
the statistical procedure. The data used in the interpretation were gathered from
credit card holders of different commercial banks in Lemery and Bauan, Batangas.
1. Interest rates of different commercial banks in Lemery and Bauan,

Batangas
The following Interest rates are from the standard/basic cards offered in
different commercial banks in Lemery and Bauan, Batangas
TABLE 1
Interest rates of different banks from Lemery and Bauan,
Batangas
Bank of the Philippine Islands (BPI) (Lemery Branch) 3.19%

Bank of the Philippine Islands (BPI) (Bauan Branch) 3.19%
East West Bank (Lemery Branch) 3.25%
East West Bank (Bauan Branch) 3.25%
Landbank of the Philippines (Lemery Branch) 3.25%
Philippine National Bank (PNB) (Bauan Branch) 3.25%
Chinabank (Lemery Branch) 3.5%
Chinabank (Bauan Branch) 3.5%
Philippine Savings Bank (PSBank) (Lemery Branch) 3.5%
Philippine Savings Bank (PSBank) (Bauan Branch) 3.5%
RCBC (Lemery Branch) 3.54%
RCBC (Bauan Branch) 3.54%
Security Bank (Lemery Branch) 3.5%
28
Table 1 shows that the 8 banks surveyed had different interest rates. The
Bank of the Philippine Islands has the lowest interest rate, with 3.19%. East West
Bank, Landbank of the Philippines, and Philippine National Bank all have 3.25%
as their interest rates. On the other hand, Chinabank, Philippine Savings Bank,
and Security Bank have interest rates of 3.5%. Lastly, RCBC has the highest
interest rate of 3.54%.
Table 1.1
Level of Interest Rates of Different Commercial Banks in Lemery
and Bauan, Batangas
Level f %
Low 2.50-2.99 0 0
Moderate 3.00-3.49 6 46.15
High 3.50-3.99 7 53.85
Total 13 100
Table 1.1 shows that out of the 13 banks that we have studied namely, Bank
of the Philippine Islands (Lemery and Bauan Branch), East West Bank (Lemery
and Bauan Branch), Landbank of the Philippines (Lemery Branch),, Philippine
National Bank (Bauan Branch), Chinabank (Lemery and Bauan Branch), Philippine
Savings Bank (Lemery and Bauan Branch), Security Bank (Lemery Branch), and
RCBC (Lemery and Bauan Branch), 0 or no banks have low interest rates, ranging
from 2.50% to 2.99%. It also indicates that 6 out of 13, or 46.15 percent have
moderate interest rates, ranging from 3.00% to 3.49%. Also, 7 or 53.85 percent
29
have high interest rates ranging from 3.50% to 3.99%. Based on the results above,
majority of the banks studied have high interest rates although there is only a slight
difference with those which have moderate interest rates. The levels of modality
were based on the clients’ opinion and preference.
The results agree with the study of Koch (2015) where he described the
appropriateness and fairness of the interest rates of credit cards since all the
interest rates are within the standardized range of interest rates set by the Bangko
Sentral ng Pilipinas. The findings supported the variety of interest rates per bank,
that although similar, still hold differences that make it distinct from other banks. It
correlates with the study of Al-Jarrah (2012) which focused on how interest rates
vary from bank to bank since banks have different policies they follow and promos
they offer. It is also in accordance to the search comparison conducted by the
website, Mozo, where it revealed that the interest rate on credit cards varies widely
depending on the type of card and provider. As seen in the table above, different
banks are entitled to different interest rates but same banks all have one unified
interest rate, regardless of the branch. Steiner (2014) mentioned that low interest
rates are a driving force of the housing bubble and appear attractive to the credit
card holders. In relation to this, more banks are inclined to set lower interest rates,
or give more benefits and rewards to those which have higher rates.
2. The number of credit card holders in different banks from the
months of August to December 2017.
The number of credit card holders within the time frame coming from
different banks and branches are listed below. With respect to the agreement
30
between the researchers and bank managers, the names of the banks with their
corresponding number of credit card holders shall remain confidential.
TABLE 2
The Number of Credit Card Holders from Different Banks and Branches
from Lemery and Bauan, Batangas from August to December 2017
Bank Number of credit card holders

Bank 1 (Bauan Branch) 158
Bank 3 (Lemery Branch) 80
Table 2 shows that Bank 1, which is situated at Bauan, Batangas, has the
most number of credit card holders for the months of August to December 2017
having 158 credit card holders. Bank 2 from Bauan also comes at second, with
112 credit card holders. This is followed by Bank 3, located at Lemery, Batangas,
has 80 credit card holders. Bank 4, also from Lemery, is closely behind bank 3,
with 79 credit card holders. Bank 5 in Bauan has 65 credit card holders, with Bank
6 close by, having 63 credit card holders for Lemery. Bank 7 has 50 credit card
31
holders for their Bauan branch. Bank 8 from Lemery has 20 credit card holders,
Bank 9, which is also situated at Lemery has 14 credit card holders, and Bank 10
from Bauan has 13 credit card holders. Bank 11 has 10 credit card holders, as well
as Bank 12, which are both located at Lemery, Batangas. Bank 13 from Bauan has
the least number of credit card holders with only 5 credit card holders within the
time period.
The results supported the conclusion of the study of Argus in 2014, where
it showed strong evidence that credit cards are continuously rising in the market.
As seen from the results above, in a span of a few months many have acquired
credit cards regardless of the banks. According to creditrepair.com, since credit
card holders are more subjected to falling into debt, more card holders are inclined
to apply for credit cards with lower interest rates as seen in the huge difference
from banks 1 – 7 as compared to those of bank 8 – 13. Contrary to the study
conducted by Kirkland in 2015 which states that consumers are not aware of the
interest rates of credit cards offered and the study of Symons (2015), which
testifies that consumers often pay little notice to credit card interest rates when
comparing the market, the results show that interest rates do in fact have an effect
on the number of credit card holders. A trend can be drawn from the results, such
that the lower the interest rate, the more the number of credit card holders.
3. Significant relationship between interest rate and the number of
credit card holders of different commercial banks in Lemery and Bauan,
Batangas
The significant relationship between the interest rate and number of credit
32
card holders of different commercial banks in Lemery and Bauan, Batangas is
presented in the table below.
Table 3
Relationship between Interest Rate and the Number of Credit Card
Holders of Different Commercial Banks in Lemery and Bauan, Batangas
Mean Mean r-value Description p- Decision Verbal

Interest Number of value (Ho) Interpretation
Rate Credit Card
Holders
Moderate
0.033800 52.23 -0.703 negative .0073 Reject Significant
correlation
As presented on the table above, the mean interest rate is 0.033800 or
3.38%. Conversely, the mean number of credit card holders is 52.23. The
computed r-value for the interest rate is -0.703, verbally interpreted as moderate
negative correlation. The computed p-value which is .0073, is less than 0.03 level
of significance, meaning there is a strong evidence against the null hypothesis that
led to its rejection. This means that the interest rate inversely affects the number
of credit card holders such that as the interest rate goes down, the number of credit
card holders goes up and vice versa.
In relation to an article by Nelson D. Schwartz for The New York Times in
2017, which stated that when interest rates rise, credit card holders would be more
exposed to a larger burden since credit card debt is so much more expensive than
33
other forms of credit. This heightens the inclination of credit card towards lower
interest rates to protect themselves. This somewhat agrees with the findings of
JPMorgan Chase Institute (2017), where it was revealed that interest rates have a
meaningful influence on our financial behavior. In this case, interest rates affect
our choice of bank to apply/avail a credit card from. Since consumers would want
the best possible offer, they would likely choose the credit card with the least
interest rate, so they would not fall into debt. The findings also supported the study
of Lindberg in 2015, where he analyzed the balances of credit card interest rates
with regards to the percentage of people who have them. Meaning to say, the lower
the interest rate of the credit card, the higher percentage of people who have them
or would want to have them. In accordance to the statement provided by Fred O.
Williams in 2015, the results show the inclination of credit card holders to lower
rates since higher and rising rates become harder to pay and carry a larger risk to
the credit card holders.
4. SWOT Analysis and Statement of Improvement of Credit Card Policies
The SWOT Analysis aims to identify the strengths, weaknesses,
opportunities, and threats of the different banks. It may help the banks recognize
their advantage over competitors, improve their weaknesses, exploit opportunities,
and prepare for threats throughout the course of its operations. It is a strategic
planning tool that could help the banks identify the key points that make them
attractive or repulsive to credit card holders or clients. In its most basic sense, this
framework would serve as a guide to banks and credit card holders alike, in
determining the best option for their choice of credit card, and for using this as a
34
guide to further strengthen and improve services offered to the consumers/clients.
Rationale
Given that the findings revealed that there is a relationship between interest
rate and the number of credit card holders, the researchers developed a SWOT
Analysis and Statement of Improvement of Credit Card Policies to help banks and
credit card holders identify the factors that affect the consumers’ choice of credit
card. The SWOT Analysis include data based from the answers provided by the
consumers/clients which reveal their preference when it comes to credit cards. The
Statement of Improvement for Credit Card Policies would help banks with their
decisions to alter or make some changes to their policy on hand, since the
information included here all came from the wants, needs, and opinion of their
credit card holders. They could use this as a guide to further cater to their
customers’ preferences.
The researchers believe that through these SWOT Analysis and Statement
of Improvement for Credit Card Policies the banks can improve their services so
that the credit card holders would be satisfied and potentially increase in number.
SWOT Analysis
The following are the strengths, weaknesses, opportunities and threats in
each bank studied in Lemery and Bauan, Batangas as seen and foretold by the
observed branches included in the study.
 Bank of the Philippine Islands
 Strengths
o Has large number of credit card holders
35
o New products and services offered and made
o Contains a low interest rate for credit cards
o Well known banking establishment
o Has strong customer base
o Offers multiple over the edge services
o Offers small differences in rates for variations in credit cards
o Approachable and competent employees
o Has the longest time for repayment as compared to other banks
o Provides mobile banking
 Weaknesses
o Extensive process with multiple requirements for application
o Prolonged procedures due to many clients and card holders
o Ever changing consumer FAQs
 Opportunities
o Has enhanced tie-ups with other branches
o Partnership with numerous establishments in the country
o Always located in any populous area
 Threats
o Intense competition between high ranking competitors
o Economic stability
o Demand for different services
o Changes in customer inclination
o Limited international presence
36
 Chinabank
 Strengths
o Chinabank has numerous credit card holders
o Offers multiple services
o Entertains customers with the quality service they promise
o It is a well-known establishment in the country
o Offers many customer benefits
o Customer Loyalty
o Strong management
o Brand Name
o The establishment continues to enhance and strive for quality service
 Weaknesses
o It has a large percentage of interest rate
o Higher rewards only available for much more expensive cards
o Proposes identical promos and rewards as other competitors
o Slow service due to great number of holders and clients
o Awaiting productivity of establishment
 Opportunities
o Ease of Accessibility
o Has many partnerships with several other establishments
o International expansion
o New technological advancements
 Threats
37
o Has numerous competitors
o Bad economic status
o Change in likings of consumers
o Price Changes in the consumer market
o New demand of a better service
 Land Bank of the Philippines
 Strengths
o Offers hands on assistance to their customers.
o High growth rate of banks
o Highly skilled and experienced workforce
o Has a global industry
o Land Bank has a large market size
o New products and services offered
 Weaknesses
o Impending Productivity
o Credit card has high percentage rate
o Unpleasant service towards customers at most times
o A limited number of credit card holders
o More well-known for other services, not including credit cards
 Opportunities
o Involved in partnerships with multiple corporations
o Conveniently located in populous areas.
o Global Accessibility
38
o Increasing demand
 Threats
o Growing Competition
o Continuous rise of debit cards as payment for purchases.
o Gradual changes in prices of commodities
o New demand for newer services
o Change in preferences of customer likings
 East West Bank
 Strengths
o Many Credit Card Holders
o It has a moderate level of interest rate
o Employees always wear a smile
o Hands on & approachable employees
o Limitless promos and rewards
 Weaknesses
o Small number of employees
o There are only better rewards if a card is expensive
o Some banks offer lower interest rate
o No specialization due to lack of manpower
 Opportunities
o Other commercial banks offer higher interest rates
o Ease of accessibility due to many branches
o Bulls eye target market
39
o Located at a populous town
o Spread of rumors and bad media around other banks
 Threats
o Many competitors
o Weak brand image
o Other commercial banks change their offers rapidly
o Rise of debit card for purchasing of goods/services.
o Influence of family members
o Other banks offer the same promos & services
 Philippine National Bank
 Strengths
o Offers a moderate level of interest rate
o Their interest rate is well known to be lower than other banks
o It has an established brand image in the Philippines
o Offers different promos and services
o Mobile remittances
 Weaknesses
o There are banks which have lower interest rates
o Big gap difference between card offers (for platinum, for gold, etc.)
o Not enough promotional activities
o Some rewards are only exclusive and cannot be easily attained
 Opportunities
o Other banks offer higher interest rate than their bank
40
o Evolvement of new and advance technology
o Has a widespread of branches
o Recognized by many people
 Threats
o There were lots of banks where it was located
o The spread of false information about the bank
o Opinions of their family and relatives
o All the competitors are using different means and methods to
popularize their product and services.
o The promotion of debit cards over credit cards
o They provide same promos and rewards as others
 Philippine Savings Bank
 Strengths
o Recognized by many
o Customer satisfaction is very high
o Strong managing practices
o Established brand name of establishment
o Loyalty of customers
 Weaknesses
o Has fewer credit card holders
o Limited number of employees
o Large interest rate for credit cards
o High rewards only account for really expensive cards
41
o Slow business productivity
 Opportunities
o Relatively new services offered
o Engaged with several dealings with known corporations
o Convenience
o Slow degradation of other competitors
o Increasing demand
 Threats
o Has multiple competitors
o Customer preference changes swiftly
o Economic status of credit card holders remains to be variant
o Other banks and credit lending institutions has lower interest rates
o Demand for better services
 RCBC Bank
 Strengths
o Very Spacious
o Use of modern information technologies
o Wide range of banking services
o Well-trained manpower
o Fast & Accurate Service
 Weaknesses
o Few credit card holders
o Not Enough Promotional Activities
42
o Fewest credit card holders
o High Interest Rate
 Opportunities
o Usually located slightly far from other commercial banks
o Expansion to other populous places
o Considered as one of the country’s largest banks
o Numerous branches to choose from
 Threats
o Lots of competitors
o Highest lending rate or interest rate
o Customer Preference
 Security Bank
 Strengths
o The employees give care to their clients
o Customers feel secured with all the services
o Located in the commercial area
o Fully Computerized and tech-savvy
o Wide range of banking services
 Weaknesses
o This bank has a few credit card holders.
o Reliant on its customers, they can switch for lower interest rate
o Limited ATM booths
o Few number of employees
43
o Other bank provides lower interest rate
 Opportunities
o This bank has a TV advertisement
o Has a good image to general public (No Glitch about services)
o Expansion to other populous places
o Other commercial bank offers higher interest rate
o Small-scale business banking
 Threats
o Has a few credit card holders
o Other banks established a good reputation with the public
o This bank offers the higher interest rate among other banks
o High level of competition
o Customers have varying interest
Conclusion
Therefore, commercial banks with low interest rate have an advantage over
those which have higher rates in which the credit card holder are more inclined
towards them. However, other factors such as services plays an important role to
the choice of credit card as seen with the ChinaBank more or less, the less
difference between commercial banks gives each edge in regards to competition.
44
Statement of Improvement of Credit Card Policies
Credit Card Policies are lists of guidelines governing the use of credit cards
in respective banks. The Manual of Regulations for Banks (2015) stated that
Bangko Sentral ng Pilipinas (BSP) shall foster the development through innovative
products such as credit cards under conditions of fair and sound consumer credit
practices. Therefore, the BSP would set out a list of policies that shall be the basis
upon which different banks can build their respective policies on. The BSP likewise
encourages competition and transparency to ensure more efficient delivery of
services and fair dealings with customers. Although the BSP set out a credit card
policy of their own, banks are entitled to add, omit, and modify certain aspects to
fit their respective criteria as long as it does not violate any primary regulation
imposed by the Bangko Sentral ng Pilipinas.
The following is a list of modified BSP credit card policies that is centered at
the preferences of the card holders specialized only to the banks involved in the
study. This is by no means authenticated by the Bangko Sentral ng Pilipinas but
can be used as a platform for alteration to present policies regulated in the banks.
 Improvement of specified and approved establishments circulating the
whole credit card policies for the benefit of avoiding further alterations and
or complications that will be preceded by the card holder
 The Card holder is the only person permitted or authorised to use the credit
card and may not be allowed for other consumers to use such without
specific identification.
45
 Improved benefits for lower specified cards which may aid further
consumer’s choice.
 Advanced progression of proper knowledge and attainability of credit cards
for the benefit of consumer’s activity bound choices
 Prolonged deadline period lowering interest addition for a certain period for
the beneficial aspects of the customers
 Notices are regularly issued based on the limit and use of a credit card
holder for the sake that may provide better experience of the establishments
services.
 Technological advancements for security development ex. (finger print,
facial and voice recognitions, enhance background password of consumer,
validated identification renewed regularly, etc.)
 Certain credit cards should be divided based on the criteria of business
transactions, business expenditure, and personal use.
 Increasing credit card expenditure per month by 25% hence expanding
credit card limit.
46
CHAPTER V
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter presents the summary, findings, conclusions, and
recommendations of the study based on the results gathered and analyzed by the
researchers.
This study aimed to determine the interest rates of credit cards and the
number of credit card holders of different commercial banks in Lemery and Bauan,
Batangas.
Specifically, it sought to answer the following questions.
1. What are the interest rates of different banks in Lemery, Batangas?
December 2017?
policies?
Hypothesis
The researchers posted the hypothesis:
Ho: There is no significant relationship between the interest rate of
commercial banks and the number of credit card holders
47
Descriptive type of research was used to describe the relationship between
the interest rate and the number of credit card holders. The researchers gathered
the interest rates and the number of credit card holders of various banks and used
an eighteen-item survey questionnaire distributed to different credit card holders
in Lemery and Bauan, Batangas.
Findings of the Study
Based on the data collected, the following findings were obtained:
5. There is a difference between the interest rates of credit cards in different
banks. BPI offers credit cards with 3.19%, East West Bank, Land Bank of
the Philippines and Philippine National Bank all offer an interest rate of
3.25%, Chinabank, Philippine Savings Bank, and Security Bank all have
3.5% as their interest rates for credit cards, while RCBC offers 3.54%.
6. Bank 1 from Bauan had the most number of credit card holders, with a total
of 158, while Bank 13 from Bauan had the least number of credit card
holders, with only 5 credit card holders.
7. The interest rate obtained a computed r-value of -0.703, verbally interpreted
as moderate negative correlation. It obtained a computed p-value less than
0.03 level of significance that led to reject the null hypothesis. Thus, the
interest rate was significantly related to the number of credit card holders.
8. The proposed SWOT Analysis and Statement of Improvement of Credit
Card Policies might be helpful to the different banks and credit card holders
in such way that this would serve as a guide to both.
48
Conclusions
Based on the findings of the study, the following conclusions were
produced.
5. Majority of the banks had high interest rates (from 3.50% - 3.99%) although
there is only a slight edge to those who have moderate interest rates (from
3.00% - 3.49%)
6. Credit cards with lower interest rates have more card holders than those
with higher interest rates since customers are more inclined to avail credit
cards with lower interest rates. Other factors, aside from interest rates, also
play a vital role in the consumers’ choice of credit card.
7. There is a significant relationship between interest rates and the number of
credit card holders of different commercial banks
8. The SWOT Analysis and Statement of Improvement of Credit Card Policies
would guide the credit card holders and banks as these are drawn from the
card holders’ preferences and opinions.
Recommendations
After careful analysis and extensive deliberation, the researchers
have concluded the following recommendations that may be considered:
5. The general public who would like to avail credit cards in the near future
may use the results to foresee or contemplate from different bank interest
rate options and further helping their decisions in choosing their credit cards
in preferred banks.
6. The different commercial banks may apply the researchers gathered results
49
so that they may formulate improvements throughout their system including
services based on the consumers preferred choices. The researchers
recommend taking a look at the output so that the banks could identify the
strengths, weaknesses, opportunities, and threats, that affect
customers’/clients’ decisions.
7. The credit card holders who may use the given information to find a suitable
bank of their choice for their money to seek refuge in and further locating
the services they need. The researchers recommend to carefully observe
the conclusions drawn throughout this research to better identify what deals
to engage in.
8. Future researchers may be able to use the data gathered and further
conduct a similar study or expand and regenerate a more accurate result.
They may use a different scope, possibly including a wider array of banks
coming from different locations. They may also contact or go to the main
office/headquarters of each bank to assure that the data would be accurate
and precise.
50
BIBLIOGRAPHY
Journals and Articles
Center for Financial Services Innovation (2017). Hidden in Plain Sight: How
Secured Credit Cards Can Build Credit and Engage New Customers
Financial Conduct Authority. (2015). “Credit Card Market Study: Interim Report”
pp.22-30, p.94
Hodges, Graham. Deputy Chief Executive Officer, ANZ, Proof Committee
Hansard, 16 October 2015, p. 60.
Kirkland, Alan. Chief Executive Officer, CHOICE, Proof Committee Hansard, 27
August 2015, p. 51.
Lindberg, David Robert. Chief Executive, Commercial and Business Bank,
Westpac Group, Proof Committee Hansard, 16 October 2015, p. 25.
ANZ.
Nicole Pedersen-McKinnon, 'Big bank sentence? 18 years card-labour', Canberra
Times, 22 August 2015, Retrieved from:
http://www.canberratimes.com.au/money/borrowing/big-bank-
sentence-18years-cardlabour-20150819-gj2xo3.html.
Pearson, Anthony. Chief Economist and Executive Director, Industry Policy,
Australian Bankers' Association, Proof Committee Hansard, 22
September 2015, p. 9.
51
Symons, Matt. Chief Executive Officer and Co-founder, SocietyOne Australia Pty
Ltd, Proof Committee Hansard, 22 September 2015, p. 24.
Electronic Resources
https://www.nytimes.com/2017/03/14/business/economy/consumer-interest-
rates-federal-reserve.html
https://www.creditrepair.com/articles/debt-solutions/effect-of-lowering-credit-card-
interest-rates
http://www.investopedia.com/financial-edge/0311/7-factors-for-comparing-credit-
cards.aspx
https://www.creditdonkey.com/average-credit-card-interest-rate.html
https://www.creditcards.com/credit-card-news/interest_rate-increase-cost-
cardholders-1276.php
https://www.imoney.ph/credit-card
https://cfsinnovation.org/research/consumer-credit/
https://www.moneymax.ph/credit-card/articles/top-credit-cards-for-first-timers
https://www.fca.org.uk/firms/consumer-credit-research-cards
https://www.pinoymoneytalk.com/credit-card-interest-rates-comparison/
52
APPENDICES
Appendix A
OUR LADY OF CAYSASAY ACADEMY
Taal, Batangas
Good day!
We are Grade 12 ABM Students from Our Lady of Caysasay Academy conducting a
research entitled, Interest Rate and the Number of Credit Card Holders of Commercial
Banks in Lemery, Batangas: Basis for SWOT Analysis and Statement of Improvement of
Credit Card Policies, as a requirement for Research II. We kindly ask you to answer the
questionnaire below as a new credit card holder. Your input will help us determine the
relationship between interest rate and the number of credit card holders. The survey
should only take 5 minutes; and we assure you that we won’t spam you in any way and
that your responses would be completely anonymous.
Thank you for helping us out. Your response is truly essential to the completion of our
research. If you have any questions about the survey, or if you want to be informed of the
future results of the study, please email us: FutureCPAs2018@gmail.com
Please check the box that applies.
A. GENERAL IN FORMATION
1. In what bank did you avail your credit card? Check one.
RCBC BPI PNB Land Bank
PSBank Security Bank Chinabank East West Bank
2. What kind of credit card do you own? Check one.
Classic Diamond Visa Gold MasterCard
Prestige Platinum Others, Please Specify:____________________
3. How did you come up with the decision to attain your credit card from a certain bank?
Check one.
From Friends and Family From Brochures From Media Advertisements
Others Please Specify: _________________________________________________
4. How often do you typically use your credit card?
Daily Once a week Weekly Once a month Monthly
Others, Please Specify:_________________________________________________
5. Are you able to meet the deadline of payment for your credit card?
Always Sometimes Never
6. What range of interest rates seem the most reasonable to you? (Given that there are
benefits and securities provided)
2.5% - 2.75% 2.76% – 3% 3% - 3.5%
B. CUSTOMER PREFERENCE
7. Which characteristics of a credit card appeal to you? Check all that apply.
Low Interest Rate Credit Rating Convenience
Promo and Rewards Security History Flexibility
8. Which characteristics apply to the credit card that you have? Check all that apply.
Low Interest Rate Credit Rating Convenience Security
History Promo and Rewards Flexibility
53
9. Are you satisfied with your credit card and what it offers?
Yes No
10. Did the bank name affect your decision?
Yes No
11. Did your family and friends’ opinion affect your decision?
Yes No
12. Are you aware of the interest rate your bank offers?
Yes No
13. Are you aware of the credit card policy of your bank?
Yes No
14. Do you think that the interest placed on your credit card affects your likelihood to be
under huge debt?
Yes No
15. Do you think the interest rate affects your credit card spending habits?
Yes No
16. Do you think you are affected by the fluctuating interest rate of your bank? Why?
Yes No
__________________________________________________________________________________
_____________________________________________________________________________
17. Did you check the interest rate before getting the credit card you currently possess?
Why?
Yes No
____________________________________________________ ______________________________
_____________________________________________________________________________
18. For instance, if another bank offers you a credit card for a smaller interest rate, would
you accept the deal? Why? Yes No
___________________________________________________________________________________
_____________________________________________________________________________________
Validated by:
MRS. MARGARITA M. PEREZ

Research 2 Teacher
MRS. WENDY V. MARQUEZ

SYMBA Moderator
MS. JOAN C. PEREZ

Statistician
54
APPENDIX B
Sample Letters of Request
High School Department
Taal, Batangas, Philippines 4208
January , 2018
MANAGER
East West Bank
Lemery, Batangas
Dear Sir/Madam:
We, the GRADE 12 students of Our Lady of Caysasay Academy under ABM
strand, are currently conducting a study entitled, “INTEREST RATE AND THE
NUMBER OF CREDIT CARD HOLDERS OF DIFFERENT COMMERCIAL
BANKS IN LEMERY AND BAUAN, BATANGAS: BASIS FOR SWOT ANALYSIS
AND STATEMENT OF IMPROVEMENT OF CREDIT CARD POLICIES” as a
requirement in Research in Daily Life 2 subject .In connection to this, we are
requesting your good office to permit us to acquire the number of credit card
holders as well as the interest rate for the credit cards offered. Also, may we
request you to allow us to conduct survey to the credit card holders to know the
factors that affect their choice of bank.
We hope this request will merit your kind and favorable consideration. Rest
assured that the gathered data will be treated confidentially.
Thank you very much.
Respectfully yours,
Charisse Aileen De Guia
Joshua Mathew Barrion
Mike Angelo Tarcelo
Noted: Approved:
b
MARGARITA M. PEREZ Mr. EUGENE T. PUNZALAN
Research 2 Teacher Senior High Coordinator
55
High School Department
Taal, Batangas, Philippines 4208
January , 2018
MANAGER
East West Bank
Bauan, Batangas
Dear Sir/Madam:
We, the GRADE 12 students of Our Lady of Caysasay Academy under ABM
strand, are currently conducting a study entitled, “INTEREST RATE AND THE
NUMBER OF CREDIT CARD HOLDERS OF DIFFERENT COMMERCIAL
BANKS IN LEMERY AND BAUAN, BATANGAS: BASIS FOR SWOT ANALYSIS
AND STATEMENT OF IMPROVEMENT OF CREDIT CARD POLICIES” as a
requirement in Research in Daily Life 2 subject .In connection to this, we are
requesting your good office to permit us to acquire the number of credit card
holders as well as the interest rate for the credit cards offered. Also, may we
request you to allow us to conduct survey to the credit card holders to know the
factors that affect their choice of bank.
We hope this request will merit your kind and favorable consideration. Rest
assured that the gathered data will be treated confidentially.
Thank you very much.
Respectfully yours,
Charisse Aileen De Guia
Joshua Mathew Barrion
Mike Angelo Tarcelo
Noted: Approved:
MARGARITA M. PEREZ Mr. EUGENE T. PUNZALAN

Research 2 Teacher Senior High Coordinator
56
CURRICULUM VITAE
A. PERSONAL DATA
NAME: Charisse Aileen D. De Guia

NICKNAME: Char
AGE: 17
ADDRESS: #138 P. Burgos St., Lemery, Batangas
SEX: Female
CIVIL STATUS: Single
CITIZENSHIP: Filipino
RELIGION: Roman Catholic
BIRTHDATE: March 08, 2000
BIRTHPLACE: Lemery, Batangas
FATHER’S NAME: Casimiro A. De Guia Jr.
MOTHER’S NAME: Amelia C. Dela Luna
B. EDUCATIONAL BACKGROUND
ELEMENTARY: Our Lady of Caysasay Academy (OLCA)
S.Y. 2005-2012
SECONDARY: Fame Academy of Science and Technology (FAST)
S.Y. 2012-2016
SENIOR HIGH SCHOOL: Our Lady of Caysasay Academy (OLCA)
S.Y. 2016-2018
STRAND: Accountancy, Business, and Management (ABM)
57
CURRICULUM VITAE
A. PERSONAL DATA
NAME: Joshua Mathew B. Barrion

NICKNAME: Josh
AGE: 17
ADDRESS: #85 Maabud South, San Nicolas, Batangas
SEX: Male
BIRTHDATE: August 28, 2000
BIRTHPLACE: Lemery, Batangas
FATHER’S NAME: Donnie Jay V. Barrion
MOTHER’S NAME: Marilou R. Bereña
ELEMENTARY: PS #33 Dr. Paul Rafalides School
S.Y. 2005-2012
SECONDARY: The Master’s Academy
S.Y.2012-2016
SENIOR HIGH SCHOOL: Our Lady of Caysasay Academy (OLCA)
S.Y. 2016-2018
STRAND: Accountancy, Business, and Management (ABM)
58
CURRICULUM VITAE
A. PERSONAL DATA
NAME: Mike Angelo B. Tarcelo

NICKNAME: Gelo, Tarcy, Tars, Eli
AGE: 17
ADDRESS: Mahayahay, Lemery, Batangas
SEX: Male
BIRTHDATE: August 06, 2000
BIRTHPLACE: Mahayahay, Lemery, Batangas
FATHER’S NAME: Bernardino N. Tarcelo
MOTHER’S NAME: Eugenia B. Tarcelo
ELEMENTARY: Mahayahay, Elementary School
S.Y. 2004-2012
SECONDARY: Our Lady of Caysasay Academy
S.Y. 2012-2016
TERTIARY: Our Lady of Caysasay Academy
S.Y. 2016-present
STRAND: Accountancy Business and Management
59

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INTEREST RATE and the NUMBER OF CREDIT CARD HOLDERS of

DIFFERENT COMMERCIAL BANKS in LEMERY and BAUAN, BATANGAS:

BASIS FOR SWOT ANALYSIS and STATEMENT of IMPROVEMENT of

CREDIT CARD POLICIES

De Guia, Charisse Aileen D.

This thesis entitled, “INTEREST RATE and the NUMBER OF CREDIT

CARD HOLDERS of DIFFERENT COMMERCIAL BANKS in LEMERY and

BAUAN, BATANGAS: BASIS FOR SWOT ANALYSIS and STATEMENT of

IMPROVEMENT of CREDIT CARD POLICIES” prepared and submitted by

CHARISSE AILEEN D. DE GUIA, JOSHUA MATHEW B. BARRION, AND MIKE

ANGELO B. TARCELO, in partial fulfilment of the requirements for Research II,

Approved by the committee on Oral Examination with a grade of _____________

Joan C. Perez Francis B. De Castro

gratitude to the following:

Our Lady of Caysasay Academy, spearheaded by our COO, Ms. Nenette

Coordinator, Sir. Eugene Punzalan, for their unwavering support;

make the necessary changes for the improvement of their study;

have agreed to play a major part of our study;

outcome of our research:

to the accomplishment of the story.

and for surrounding me with blessings that help me grow;

for never giving up on us;

around during our late night, last-minute revisions;

My friends, who became the backbone to my confidence, without whom I

would’ve never survived the making of this study;

giving up on yourselves and pursuing your dreams. Char

it possible for the success of this research study.

To my family, who have fully supported me in this research mentally and

My rowdyruff research family for helping make this research a success,

Mike Angelo B. Tarcelo, especially our leader, Charisse Aileen D. De Guia,

To my adviser/research 2 teacher, Ms. Mharj Perez, who never gave up on

believed in our capabilities and knowledge to fully defend our topic.

that have help me build up confidence throughout this unforgettable adventure.

helping us despite the many hindrances that have occurred.

I would like to extend my gratitude to all the people who contributed to

make this research possible.

My Mother, for her love, support and understanding likewise, words of

encouragement given to me to pursue this study.

My partners, Charisse and Joshua who actively cooperated in order to

finish this study.

my hand through my ups and downs.

Card Holders Of Different Commercial Banks

In Lemery and Bauan, Batangas: Basis For

SWOT Analysis and Statement Of

Improvement Of Credit Card Policies

Researchers : De Guia, Charisse Aileen D.

Barrion, Joshua Matthew B.

Tarcelo, Mike Angelo B.

Total Number of Pages :

Type of Document : Research Paper

Name and Address of Institution : Taal, Batangas 4208

Number of Respondents : 13 Commercial Banks/ 105 Credit Card

in different commercial banks in Lemery and Bauan, Batangas.

3. Is there a significant relationship between interest rate and the number of

credit card holders?

from the SWOT analysis and statement of improvement of credit card

The researchers posted the hypothesis:

Ho: There is no significant relationship between the interest rate of

commercial banks and the number of credit card holders

Descriptive type of research was used to describe the relationship between

an eighteen-item survey questionnaire distributed to different credit card holders

in Lemery and Bauan, Batangas.

Findings of the Study

Based on the data collected, the following findings were obtained: