Nowadays, using credit cards is one of the most popular payment methods all over the world. However, debt is becoming considerably common because of the overspending of people about their money, as well as unable to pay it off in time. I strongly agree that banks should check every individual’s credibility and reliability before issuing a credit card. Some reasons for that will be substantiated in this essay.
Firstly, the convenience of swiping a credit card makes purchases easier in today’s world. We can easier to see that the using of credit cards are take up a high proportion of almost younger people because of their high demands .For example,when seeing their idols wear or use somethings very sumptuous,they tend to imitate as their idols without considering prices.Moreover, most of the young people are lack of knowledge about financial education and they also don’t have enough ability to pay back their debits.In a period of time,it leads them to form bad habits and it causes many negative impacts in their future . Therefore, it is emergency for banks to inspect customer information cautiously before issuing a credit card.
Secondly , an increasing number of people are not able to estimate their ability to pay off credit cards have a micro impact on the society and the economy.For. instance,unemployment increase days by days and economic uncertainty can lead to reduced investment and business contraction.
To sum up, for two reasons I mentioned above, I totally agree that banks should test out the customer’s profile and set a minimum limit of the amount of money that people can borrow appropriately to calculate the individual’s ability to pay before issuing a credit card.