Sunday, June 6, 2010

India’s credit card base has shrunk by 10 million cards

Banks pare number of credit cards to 2005-06 levels reports Mint (May 20, 2010) from 28.31 million (March 2008) to 18.31 million (March 2010) as they try to reduce the bad loans from this business.

Atlast something sensible is being done.  In the last few years, sales agents chased targets - actually they chased people with request to take cards.  Even if I had a card, it doesn't matter to them.  Sir - why don't you have one more card?  Every now and then unsolicited phone/mobile calls came, asking if we are interested in credit cards.

I wish the entire credit card industry is closed down especially for individuals (non-business people).  Or atleast the RBI should stipulate some minimum age limit.  It somehow gives a false sense of comfort and encourage(s) people to accumulate debt / live beyond means.  It looks like a debit card is a much better option as we will try and live within our means.  That means less problem for the individuals and also less problem for the banks.