Facing credit card woes amid pandemic? Look for lower-cost credit options

Defaulting on card dues could restrict access to credit in future

Credit card issuers are becoming wary of losses in their portfolios. SBI Cards & Payment Services saw its gross non-performing assets ratio spike to 4.3 per cent for the quarter ended September 30, compared to 1.4 per cent in the April-June quarter. Axis Bank recently said it has been consciously rationalising its exposure to any high-risk segment. 

Industry experts say all lenders have turned conservative since the onset of the Covid-19 pandemic. The moratorium has made them even more cautious. “While the issuance of new credit cards and other lending products had almost stopped in the run-up to June, some card