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Recently, “China Banking Regulatory Commission, CBRC” has promulgated a new provisions of Student credit card issuing and using.

The report said, it was not allowed to grant students credit cards for students who under the age of 18 or no steady job, no steady source of income students.

As the notice promulgated, a number of banks have stopped processing credit card business for college students. China Merchants Bank suspended students for “young card” on April 7, 2009. China CITIC Bank “I card” which launched for university students also suspended from February 9, 2009. Guangdong Development Bank, Industrial Bank and other commercial banks have closed the business either.

The real cause of college students credit cards stopp Issuing directed to college students have credit problems, it said that because “student credit card” increase in bad debts, bad repayment records of university students is too high, resulting in contraction of individual banks or suspension of operation of the business. The integrity of college students once again being questioned.

Is that true? We noticed that from Sep 20, 2004 China Issued the first student credit card, all the banks have tried their best to seize the market, they crazy to open the market seems a gold mine.

Only to seize the market, but the control of risk to a minimum threshold, as long as the submitted copy of ID card and student ID, fill out the credit card application form, a credit card can be easily overdrawn hand. Subsequently, the overdraft is to encourage consumption of a variety of incentives to induce a number of concepts are not yet ripe for consumption, the capacity of poor students made excessive consumption. Because of the insufficient of the credit card understanding, making a lot of college students overdrafts, loans, arrears of annual fee.

There is no doubt that suspension of the business banks are lose the market, they should pay the bad credit cards their own.

While the banks blamed students lack of good faith, it is better to think twice about how they seized the students credit card market and, how they betray the credit at the beginning.