Hispanic Americans and Credit Cards

Table of Contents

Chapter 1 Executive Summary

• Scope of Report and Methodology
• Overview of the Hispanic Population in the U.S.
  • Tremendous Hispanic Population Growth
  • Hispanic Income and Buying Power
  • Hispanics, Largely Unbanked
  • Hispanic Households More Likely To Be In Credit Card Debt
  • Hispanics Hit Hard by ID Theft
  • Hispanic Assimilation
  • English Will Continue to Become More Dominant in Hispanic Market
  • Demographic Highlights of Hispanics in the U.S.
• Financial and Marketing Communication Attitudes Within the Hispanic Community
  • Financial Attitudes of Hispanics Versus Other U.S. Populations
  • Financial Attitudes of Hispanics from Different Heritages Versus Total U.S. Population
  • Financial Attitudes of Hispanics: U.S. Born Versus non-U.S. Born within U.S. Population
  • Attitudes of Hispanics from Different Heritages Versus Total U.S. Hispanic Population
  • Attitudinal Differences Between U.S. and non-U.S. Born Hispanics
  • Financial Attitudes Vary Within Different Hispanic Socio-Economic Groups
• Hispanic American Credit Card Usage and Brand Preference
  • Current Credit Card Market
  • Hispanic Credit Card Use Versus Other U.S. Populations
  • Level of Education Affects Usage
  • Personal Income Level Show Similar Pattern to Education
  • Household Income Same Pattern, Lower Penetration
  • A Look at Credit Card Usage by Socio-Economic Level
  • Credit Card Usage by U.S. Born vs. Non-U.S Born Hispanics
  • Credit Card Usage by Country or Region of Heritage
  • Credit Card Usage by Country of Birth
  • Credit Card Usage by Year Moved to the U.S
  • Credit Card Usage By Level of Identification with U.S. Culture
  • Credit Card Usage By Spoken Language Preference
  • The Most Popular Card Brands
• Factors to Growth In The Hispanic Credit Card Marketplace
  • The More Activity By Financial Players in Hispanic Market, The Better For The Credit Card Industry
  • Partnering with Latino Organizations
  • Expansion into Unbanked & Underbanked U.S. Hispanic Communities
  • More Financial Advice and Education May Create New Opportunities with Latinos
  • Make Use of Latino Media Outlets
  • The Right Messaging and Segmentation
  • Be Ever Vigilant Regarding the Big Box Threat
  • Changing Immigration Laws May Affect Future Hispanic Consumer Base

Chapter 2 Overview of Hispanics in the U.S.

• Scope of Report and Methodology
• Tremendous and Continued Hispanic Growth
  • Hispanic Population at 42.7 Million
  • U.S. Population Growth Driven Largely By Hispanics
  • Hispanics Youth A Major Force
  • Nearly Half of Hispanic Population Found in California and Texas
  • Table 2-1 Metro Areas with the Largest Hispanic Population Growth Rates, 2000-2004
  • Mexicans Dominate Latino Population
• The Hispanic Community, Financially
  • Aggregate Disposable Income Rising, but Incomes Remain Low
  • Nearly 1 Million Latino Households Have Income of $100,000 or More
  • Growth of Hispanic Businesses
  • Hispanic Buying Power
  • Table 2-2 Hispanic Buying Power: 1990, 2000, 2003, and 2008 ($billions)
  • Cash Is King
  • Hispanics, Largely Unbanked
  • Unlikely To Participate In Retirement Plan
  • Hispanic Households More Likely To Be In Credit Card Debt
  • Hispanics Hit Hard by ID Theft
• Assimilation of the Hispanic Market
  • Influence of Immigrants on the Wane
  • English Will Continue to Become More Dominant in Hispanic Market
  • Retro-Acculturation May Change Pace of Assimilation
  • Most Latinos Live in Non-Hispanic Neighborhoods
• Demographic Portrait of Hispanics in the U.S.
  • Younger Generations Dominate; Live in Southwest
  • Education Highly Important Despite Low College Enrollment
  • Homemakers and House Builders
  • The Hispanic Household
  • Table 2-3 Demographic Characteristics of the U.S. Hispanic Population, 2005

Chapter 3 Hispanic Financial Attitudes

• Introduction
• Financial Attitudes of Hispanics Versus Other U.S. Populations
  • Table 3-1 Attitudes Toward Personal Financial Management: Hispanic versus Other Demographic Populations, 2005 (U.S. Overall Adult Population)
• Financial Attitudes of Hispanics from Different Heritages Versus Total U.S. Population
  • Hispanics of Cuban and Central American Heritage May Be Most Likely to Favor Credit Card Use
  • Hispanics of Mexican Heritage Are a Mixed Bag
  • Hispanics of Spanish Heritage Are Unique
  • Puerto Ricans Virtually Indistinguishable from U.S. Population
  • Table 3-2 Hispanic Attitudes Toward Personal Financial Management: By Country of Origin or Heritage, 2005 (U.S. Overall Adult Population)
  • Financial Attitudes of Hispanics: U.S. Born Versus non-U.S. Born within U.S. Population
  • Table 3-3 Hispanic Attitudes Toward Personal Financial Management: By U.S./Non-U.S. Born and Period Moved to the U.S., 2005 (U.S. Overall Adult Population)
• Financial and Marketing Communication Attitudes of Hispanics from Different Heritages Versus Total U.S. Hispanic Population
  • Puerto Ricans Prefer English
  • Cubans Are Risk Averse; Aspire to Be Successful Financially
  • South Americans Respond to Spanish; Prefer to Shop Around
  • Central Americans Feel Respect from Spanish Language
  • Advertisers
  • Hispanics of Spanish Heritage Unlike Other Hispanics
  • Hispanics of Other Heritages Mimic South and Central American Hispanics
  • Table 3-4 Hispanic Attitudes Toward Personal Financial Management: By Country of Origin or Heritage, 2005 (U.S. Hispanic Adult Population)
  • Table 3-5 Hispanic Attitudes Toward Marketing Communications: By Country of Origin or Heritage, 2005 (U.S. Hispanic Adult Population)
  • Attitudes Among U.S. Born Hispanics
  • Attitudes Among non-U.S. Born Hispanics
  • Table 3-6 Hispanic Attitudes within Hispanic Population Toward Personal Financial Management: By Country of Origin or Heritage, 2005 (U.S. Hispanic Adult Population)
  • Table 3-7 Hispanic Attitudes within Hispanic Population Toward Marketing Communications: By Country of Origin or Heritage, 2005 (U.S. Hispanic Adult Population)
  • Financial Attitudes Within Different Hispanic Socio-Economic
  • Group
  • Table 3-8 Hispanic Attitudes within Hispanic Population Toward Personal Financial Management: By Socio-Economic Group, 2005 (U.S. Hispanic Adult Population)

Chapter 4 Hispanic American Credit Card Usage and Brand Preference

• Current Credit Card Market
  • Hispanic American Credit Card Usage Demographics
  • Hispanic Credit Card Use Versus Other U.S. Populations
  • Table 4-1 Overview of Credit Card Usage by Race or Ethnicity, 2005 (Adult U.S. population)
  • Table 4-2 Frequency of Credit Card Usage by Race or Ethnicity, 2005 (Adult U.S. population)
  • Table 4-3 Monthly Number of Credit Card Transactions by Race or Ethnicity, 2005 (Adult U.S. population)
  • Level of Education Affects Usage
  • Table 4-4 Credit Card Usage by Educational Attainment: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
  • Table 4-5 Monthly Credit Card Usage by Educational Attainment: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
  • Table 4-6 Monthly Number of Credit Card Transactions by Educational Attainment: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
  • Personal Income Level Show Similar Pattern to Education
  • Table 4-7 Overview of Credit Card Usage by Individual Employment Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
  • Table 4-8 Monthly Credit Card Usage by Hispanics by Individual Employment Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
  • Table 4-9 Monthly Number of Credit Card Transactions by Individual Employment Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
  • Household Income Same Pattern, Lower Penetration
  • Table 4-10 Overview of Credit Card Usage by Household Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
  • Table 4-11 Monthly Credit Card Usage by Household Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
  • Table 4-12 Monthly Number of Credit Card Transactions by Household Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
  • A Look at Credit Card Usage by Socio-Economic Level
  • Table 4-13a Overall Credit Card Usage by Race or Ethnicity: By Socio-Economic Level, 2005 (Adult U.S. population)
  • Table 4-13b Overall Credit Card Usage by Race or Ethnicity: By Socio-Economic Level, 2005 (indexes)
  • Table 4-14a Monthly Credit Card Usage by Race or Ethnicity: By Socio-Economic Level, 2005 (Adult U.S. population)
  • Table 4-14b Monthly Credit Card Usage by Race or Ethnicity: By Socio-Economic Level, 2005 (indexes)
  • Credit Card Usage by U.S. Born vs. Non-U.S Born Hispanics
  • Table 4-15 Overview of Credit Card Usage: U.S. Born vs. Non-U.S Born Hispanics, 2005 (Adult U.S. population)
  • Table 4-16 Monthly Credit Card Usage: U.S. Born vs. Non-U.S Born Hispanics, 2005 (Adult U.S. population)
  • Table 4-17 Monthly Number of Credit Card Transactions: U.S. Born vs. Non-U.S Born Hispanics, 2005 (Adult U.S. population)
  • Table 4-18 Overall Credit Card Usage by Socio-Economic Level: Overall Population vs. U.S. Born and Non-U.S. Born Hispanics, 2005 (percent and index)
  • Table 4-19 Monthly Credit Card Usage by Socio-Economic Level: Overall Population vs. U.S. Born and Non-U.S. Born Hispanics, 2005 (percent and index)
  • Credit Card Usage by Country or Region of Heritage
  • Table 4-20 Overview of Credit Card Usage by Hispanics: By Country or Region of Heritage, 2005 (Adult U.S. population)
  • Table 4-21 Monthly Credit Card Usage by Hispanics: By Country or Region of Heritage, 2005 (Adult U.S. population)
  • Table 4-22 Monthly Number of Credit Card Transactions by Hispanics: By Country or Region of Heritage, 2005 (Adult U.S. population)
  • Table 4-23 Overall Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Country or Region of Heritage, 2005 (percent and index)
  • Table 4-24 Monthly Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Country or Region of Heritage, 2005 (percent and index)
  • Credit Card Usage by Country of Birth
  • Table 4-25 Overview of Hispanic Credit Card Usage: By Country of Birth, 2005 (Adult U.S. population)
  • Table 4-26 Monthly Credit Card Usage: By Country of Birth, 2005 (Adult U.S. population)
  • Table 4-27 Monthly Number of Credit Card Transactions by Hispanics: By Country of Birth, 2005 (Adult U.S. population)
  • Credit Card Usage by Year Moved to the U.S
  • Table 4-28 Overview of Credit Card Usage by Foreign-Born Hispanics: By Year Moved to the U.S., 2005 (Adult U.S. population)
  • Table 4-29 Monthly Usage of Credit Cards by Foreign-Born Hispanics: By Year Moved to the U.S., 2005 (Adult U.S. population)
  • Table 4-30 Monthly Number of Credit Card Transactions by Foreign-Born Hispanics: By Year Moved to the U.S., 2005 (Adult U.S. population)
  • Table 4-31 Overall Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Year Moved to the U.S, 2005 (percent and index)
  • Table 4-32 Monthly Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Year Moved to the U.S, 2005 (percent and index)
  • Credit Card Usage By Level of Identification with U.S. Culture
  • Table 4-33 Overview of Credit Card Usage by Hispanics: By Level of Identification with U.S. Culture, 2005 (Adult U.S. population)
  • Table 4-34 Frequency of Hispanic Credit Card Usage by Hispanics: By Level of Identification with U.S. Culture, 2005 (Adult U.S. population)
  • Table 4-35 Monthly Number of Credit Card Transactions by Hispanics: By Level of Identification with U.S. Culture, 2005 (Adult U.S. population)
  • Table 4-36 Overall Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanics by Level of Identification with U.S. Culture, 2005 (percent and index)
  • Table 4-37 Monthly Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanics by Level of Identification with U.S. Culture, 2005 (percent and index)
  • Credit Card Usage By Spoken Language Preference
  • Table 4-38 Overview of Credit Card Usage by Hispanics: By Spoken Language Preference, 2005 (Adult U.S. population)
  • Table 4-39 Frequency of Credit Card Usage by Hispanics: By Spoken Language Preference, 2005 (Adult U.S. population)
  • Table 4-40 Monthly Number of Credit Card Transactions by Hispanics: By Spoken Language Preference, 2005 (Adult U.S. population)
  • Table 4-41 Overall Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Spoken Language Preference, 2005 (percent and index) Table 4-42 Monthly Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Spoken Language Preference, 2005 (percent and index)
  • Credit Card Usage By Brand
    • The Most Popular Card Brands
    • Table 4-43 Overall Credit Card Brand Usage, Bank Cards: Overall Population vs. Hispanic Population by Total Hispanic Users, 2005
    • Popular Non-Bank Cards
    • Table 4-44 Overall Credit Card Brand Usage, non-Bank Cards: Overall Population vs. Hispanic Population by Total Hispanic Users, 2005

Chapter 5 Factors to Growth In The Hispanic Credit Card Marketplace

• The More Activity By Financial Players in Hispanic Market, The Better For The Credit Card Industry
• Visa's Hispanic Campaigns
• Bank of America Hispanic Outreach
• MasterCard Partnerships

• Partnering with Latino Organizations
  • MasterCard & LULAC
  • US Bank's Affinity Programs
• Expansion into Unbanked & Underbanked U.S. Hispanic
• Communities
• More Financial Advice and Education May Create New Opportunities with Latinos
• Make Use of Latino Media Outlets
  • AOL Latino Launches Personal Finance Channel, Dinero y Exito
  • Personal Finance Magazine Launched By Hispanic Money Guru
  • US Bank Partnered with Latina Style
• The Right Messaging and Segmentation
  • Direct Mail Can Work
• Be Ever Vigilant Regarding The Big Box Threat
• Changing Immigration Laws May Affect Future Hispanic Consumer Base