OREANDA-NEWS. June 10, 2014. Necessity for additional funds based on rational circumstances (46%) and emotional need to feel financially secure (40%) are the main reasons which have motivated the current credit card users in Latvia to apply for credit cards, suggests the poll of Citadele Bank.

Travel insurance and extra bonuses are the additional advantages that seem to be most appealing to credit card users.

Currently 36% of the population in Latvia use credit cards: 20% use them on a daily basis whereas another 16% keep credit cards in their wallets as "insurance policies" of their own type for unforeseen situations. The necessity for additional funds (indicated by 54% of respondents) has been the motivating factor to get a credit card for those who use it on a daily basis. In turn, 37% of active credit card users acknowledge that their motivation was to keep their credit limits for security. 23% of respondents say they started using credit cards because they provide good travel insurance, and they have frequently been responsive to such special offers as the discounts and other opportunities.

Among the passive credit card users who keep their credit cards for large purchases or unforeseen situations 24% of respondents say that those bank's proposals which encouraged to try out something were successful whereas another 10% reveal that various special offers provided by the credit card were the motivating factor.

"The reasons why people choose to apply for credit cards differ however credit cards provide their users with psychological comfort in any case. It is a feeling of security and financial independence – an opportunity to receive the sum of money necessary for a purchase immediately and without borrowing from friends or relatives or without the need to turn to a bank or another financial institution," explains Dace Priede, Head of Retail Customers and SME Services Directorate at Citadele Bank.

When asking the respondents what characterizes their habits of credit card use most, 39% said that they use them rarely however choose to keep them as "insurance policies" for unforeseen expenses which may occur, for instance, in relation to travelling. 38% of respondents use their credit cards actively in order to buy such everyday goods as groceries, fuel and clothing whereas 23% use their cards only for large purchases using their credit limits and repaying the received sum back.

An interesting matter of fact: women are more prone to use credit cards for everyday purchases (41%) than men (36%). Likewise, people with low (up to 300 euros) or high (900 euros and up) income levels use this option more frequently, 47% and 49% respectively. Women also tend to use credit limits for large purchases more frequently (33%) than men (16%); almost half of these men (48%) revealed that they use credit cards rarely and mostly in unforeseen situations.

"The use of a credit card for making large purchases both at stores and internet shops is much more convenient than applying for paying in instalments or lease," comments Dace Priede. "One must point out that credit card users can also enjoy repayment holidays for repaying their credit limits – this enables to save on interest payments for the borrowed sum if one repays the principal sum within a certain period of time, for example, before the 15th day of the next month."

This poll was conducted by Citadele Bank and snapshots.lv in April 2014, and 771 residents of Latvia aged over 18 took part in it.