what if a person uses his 10L limit credit card to C2C apply for another 10 credit cards and gets them approved because of the high limit? then the process itself has created a ticking loan bomb.
the first bank who approved the original 10L card might have done so based on the creditworthiness of the customer at that point back in time, when he had only 1 card and was not credit-hungry.
It is like, someone offering a person the job of a school headmaster just because that person scored 95% in class 1😐
No, banks don't always approve credit cards because a person has a high Credit Limit. Someone who has a Credit Limit of 10L or something, must either have a high income source or a income generator. That is okay with the bank. Banks also check the relationship with that person, in terms of transaction. So, let's say, you have a insurance, SIP, FD, RD and some more stuff. Banks will be assured that the person can pay it back, otherwise, how would a person be able to maintain so many relations? It's like even though you don't use a credit card from a bank, with whom you have good relations, the bank may not be worried, because they are getting profits from you in other ways (Insurance, Higher account variant, etc.)
Not only that , since the person has money, some banks will even want to give them a card, because s/he may default on a payment because s/he may have forgotten the bill generation date due to high number of cards, and also can repay the high interest charged by the bank, because the person is rich. Banks can let go a default of 1 or 2, if that person has good income source.
It is like, someone offering a person the job of a school headmaster just because that person scored 95% in class 1😐
Ha, getting a credit card is easier than getting a School Headmaster job
😱
