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Credit Card Usage In India Surges By 15%; Defaults Rise by 500% In 4 Years
- Thread starter iSayyed
- Start date
- Replies 4
- Views 131
It is quite expected. With the banks issuing new cards blindly.
Banks want defaults to rise. So they can charge heavy interests.
Usage rise they don't care.
Usage rise they don't care.
I slightly disagree there. Banks want people to pay the minimum due and not default. And take more EMI. - Default is a headache for banks. In many cases banks end up negotiating and settling for lesser amount. The cost spent on recovery is very high for a bank. When transferred to third party recovery agencies, banks hardly get their principle back. Its usually the agency that has the bigger pie.
THIS
I’m not sure if I’ve seen this discussed on Reddit or other forums, but I believe there are many newcomers to credit cards who are confused about which amount they need to pay: “Bill Due,” “Minimum Due,” or “Outstanding Amount.” This can be quite misleading.
For example, in the Axis app, it can be easy for someone new to credit cards to be convinced that the minimum due is the only amount they need to pay. The screenshot shared by the user of the Axis app only reinforces this misunderstanding.
Similarly, in the Kiwi app, the first option is the minimum due, highlighted in italic with the note “*Credit score stays safe*.” Many newcomers to credit cards often make the mistake of only paying the minimum due.
I’m not sure if I’ve seen this discussed on Reddit or other forums, but I believe there are many newcomers to credit cards who are confused about which amount they need to pay: “Bill Due,” “Minimum Due,” or “Outstanding Amount.” This can be quite misleading.
For example, in the Axis app, it can be easy for someone new to credit cards to be convinced that the minimum due is the only amount they need to pay. The screenshot shared by the user of the Axis app only reinforces this misunderstanding.
Similarly, in the Kiwi app, the first option is the minimum due, highlighted in italic with the note “*Credit score stays safe*.” Many newcomers to credit cards often make the mistake of only paying the minimum due.
