Inattention and credit card repayment date

Jiajun Jiang, Yi-Tsung Lee, Yu-Jane Liu and Juanjuan Meng

Journal of Economic Behavior & Organization, 2025, vol. 230, issue C

Abstract: This paper presents an analysis of how inattention affects credit card repayment dates. Data from an Asian commercial bank reveal that 70 % of repayments are made prior to the due date and 21 % are late. We show that exogenous reductions in attention levels, stemming from weekday-weekend variations in billing dates and natural disasters, amplify late repayments and diminish early repayments. We find that early repayments are not random errors, and consumers learn to pay earlier or sign up for automatic payment after historical delays. We introduce a model based on inattention and heterogeneous awareness to explain these findings.

Keywords: Inattention; Sophistication; Awareness; Credit card repayment; Learning (search for similar items in EconPapers)
JEL-codes: D83 D91 G41 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268125000265
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:230:y:2025:i:c:s0167268125000265

DOI: 10.1016/j.jebo.2025.106906

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().