Jane Lai

    CREDIT card holders who default on their annual payments risk being denied bank loans and may even have visa applications rejected, the Shenzhen Consumer Council warned Tuesday.

    The council cited the case of a student surnamed Zhang who applied for a credit card in 2006 but did not use it. A year later, he found he had been blacklisted by the bank for not paying the annual fee of 168 yuan (US$24) for his card. A year later, when he applied for a visa to study abroad, he found he had been rejected for the same reason

    The council advised consumers to hold a maximum of two credit cards to avoid overdue payments and better manage their personal credit.

    Some banks have made it easier to get a credit card in order to attract more customers. This has led to a large number of people owning several credit cards, some of which are never used.

    However, banks charge fees even for unused cards, and credit card holders who fail to pay the fees are blacklisted. Banks refuse home and car loans to applicants whose names appear on the blacklist.