The reason that most people are in debt is the overuse as well as irresponsible use of credit cards. Banks ought to do a background check and only issue credit cards to individuals who have the ability to pay back their debts. What is your opinion?

In the modern era of financing, everyone wants to achieve their dreams without thinking about their financial history and opt for

credit

cards

from

banks

. The masses recklessly use

credit

cards

and lay down in debt due to the overuse of

cards

.

However

,

banks

must check the history of payment records and debt scores and

then

endow the

credit

cards

to individuals.

This

essay with elaborate on the stated viewpoint with appropriate reasons.

First

and Foremost, today, numerous people register for platinum

cards

without having solid income background. Using the

cards

extravagantly for buying to achieve their desired life, they threaten to pay the mortgage within time duration and surge the pledge day by day. The reason behind

this

is the individual hustle to bustle in life, forgetting the pay limit.

For instance

, When customers purchase new vehicles/things by

credit

card. They do not do an instalment of items within the time duration and ignore the repayment.

Secondly

,

bank

employees should determine the customer's

bank

history and occupation.

Banks

approve

credit

cards

for people without having legal agreements or strict rules.

For example

, In INDIA, Some

banks

do not look at

credit

information bureau of customer accounts like CIBIL, and Equifax, which the Reserve

Bank

of India recognizes. They merely issue

credit

cards

without having the information, just for the high progress of

bank

status.

Furthermore

,

Banks

should follow the rules and instructions from the central

bank

.

Thus

, implementing stringent rules for handling

credit

cards

is necessary to mitigate bankruptcy. In a nutshell, numerous people risk debt by hackneyed and impetuous utilization of platinum

cards

. By screening customers' financial data,

bank

employees should be obligated to proceed with a

credit

card.