Institutional Factors Associated with Delinquency Among Female Credit Cardholders in Francisco Morazán

Abstract

Credit card arrears represent a significant challenge for the Honduran financial system, particularly in the department of Francisco Morazán, where women have shown a sustained increase in their participation in consumer credit. Although female cardholders generally exhibit better repayment behavior, credit card arrears continue to pose institutional risks with economic and social implications. This study analyzes the institutional factors associated with credit card arrears among women in Francisco Morazán. A mixed-methods approach with qualitative predominance was applied, using a non-experimental cross-sectional design. Structured surveys were administered to 362 female cardholders in arrears, and semi-structured interviews were conducted with 17 institutional staff members involved in credit and collection processes, complemented by regulatory and documentary review. Quantitative data were analyzed using descriptive statistics, while qualitative data were examined through thematic categorization and triangulation. Findings revealed a progressive reduction in female credit card arrears, mainly associated with institutional regularization mechanisms such as payment agreements, discounts, and balance adjustments. However, collection practices remained predominantly reactive, with institutional contact occurring after delinquency in 52 % of cases and limited early-stage regularization proposals. Persistent gaps were identified in the understanding of contractual terms, perceived mismatches between approved credit limits and actual repayment capacity, and insufficiently standardized preventive and financial education mechanisms. The institutional factors analyzed significantly influence female credit card arrears. Although a reduction in delinquency was observed, it is largely driven by corrective interventions, underscoring the need to strengthen comprehensive credit assessment, implement preventive strategies, and consolidate standardized financial education and early monitoring mechanisms.