Have a Credit Card? You’re Among China’s Fortunate
Access to plastic can drastically improve financial security. Banks should do more to encourage such borrowing.
Cha-ching.
Photographer: Tengku Bahar/AFP/Getty Images
Owning a credit card can seem like a rite of passage in the U.S., where even a college student with no income can sign up and start swiping. More than two-thirds of Americans over the age of 15 carry plastic.
In China, however, just 21 percent do. That’s not because they don’t want to shop: In a recent survey of 3,100 internet users, UBS Group AG found that that 44 percent plan to consume more, spending on items such as smartphones and air conditioners, while only a third intend to scale back. Nor are they financially irresponsible. Most attempt to borrow within their means, with the average loan expected over the next year amounting to little more than one month’s salary.