A credit card is an important thing to have when globetrotting, not least because many forms of online reservation require credit rather than debit payment. For those anticipating a long stay in China, a credit card may seem like a good idea.
Chinese banks issued a total number of 455 million credit cards by the end of 2014, up 4.38 percent from a year ago, the People's Bank of China (PBOC) said in a report. Chinese people used more credit cards last year, fresh evidence that the nation's traditionally frugal residents are looking for credit cards for everyday purchases.
A total of 270 million domestic credit cards were issued by the end of the third quarter of last year, and this increase may spill into the ever-growing foreign market in China.
It must be pointed out that the government's desire to increase spending is balanced with a suspicion of the credit and loan-based issues behind the Western financial crisis of 2008. Nevertheless, foreigners who previously found it almost impossible to get hold of a domestic credit card may find new opportunities in the coming months and years.
Travelling will generally become much easier for the same reason. Extra charges that apply to foreign credit cards do not apply, because no conversion of currency is required, and you are merely spending RMB rather than a foreign currency.
In short, the benefits of potentially lower interest rates are offset by more severe punishment for defaulting. Then again, if you have the financial muscle to obtain a credit card, defaulting is probably unlikely.
