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Comment by nacker | Hacker News Reader

The disturbing thing about this piece is that it seems to imply that a tsunami of credit cards will be a positive thing for India.

How anyone can think this in view of the global debt crisis is puzzling. The smarter fraction of the population in the first world now tends to regard credit cards as akin to crack, opium, or junk food. Things the moderate use of which calls for unusual levels of self-discipline.

I'm sure the prospect of millions of new credit card slaves in India has its Shylocks salivating, but let's hope something has been learned about the consequences of failing to keep them under close scrutiny.

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Access to credit is a huge deal for people. How else to create a small business, tide over a health crisis, or make a big education investment?

Right now poor people are at the mercy of pawnbrokers, loan sharks who often charge interest rates of 100%+ per year.

Potentially access to reasonable rate credit cards is life-changing.

If you can't think of any way to create a small business other than by using a credit card, you probably shouldn't be starting a business.

Making a "big education investment" on a credit card is insanity. The student loan debt crisis may well be the next domino to fall in the the US economic meltdown - it was half the motivation for the participants in Occupy:

http://business.time.com/2012/11/29/is-the-student-loan-debt...

Rates on credit cards are generally less than reasonable, and their policies are frequently abusive. And this is in America, not the "wild East".

http://www.mybudget360.com/endgame-credit-card-nation-40-yea...

Watch, or listen to this, if you are concerned about India's future exploitation:

http://www.democracynow.org/2010/2/23/robert_manning_credit_...

Individual credit card debt is NOT what precipitated the global debt crisis.

I didn't claim it was the only factor. Read this:

http://seekingalpha.com/instablog/428250-michael-clark/60563...

Agree, one hundred percent.

If the way housing loans work in India is a pointer, you will see a lot of scrutiny in the way the credit cards would be managed. Indian banks are decidedly conservative.

Not really. It is much easier to obtain credit cards than bank loans in India. Infact banks constantly call the people offering credit cards (to the point where people become irritated). To get housing loans, you have to provide significant collateral. Net, consumerism and debt load is going to screw the largest middle class base...

That perception is wrong, before they issue the card, they request income proofs, do residence verification etc. Moreover, if payment is not made, there is a follow-up process that will put village moneylenders to shame.

Credit limits are also set in a very conservative manner.

You are talking about the scene 3 or 4 years back. There is a significant amount of background checks before credit cards are issued especially if you are not employed in a big brand IT company.

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