What are the pros and cons of SBI credit cards?

From the leading largest bank of India, namely the SBI, it was recently disclosed that it ceased offering lifetime free credit cards. Stated reasons for such change is due to baker’s need for high profitability and due to market trends.

The credit card business in India has also grown intensely competitive over the years, and there is a proliferation of new recorded methods employed by banks in the course of generates revenues from credit card services. Thus people are attracted to lifetime free credit cards but they are less beneficial to these banks because they do not make money from the annual fees.

Thus, SBI can at least have a much more stable and regular source of revenue through annual or renewal fees instead of having to offer the lifetime free credit cards. This way the bank is able to recuperate the costs associated with the credit cards as well as fund improvements of customer’s experience on the credit card.

This is perhaps a good place to mention that while SBI no longer has the lifetime free credit cards policy, it has several other credit cards with differing fees and incentives. This makes it possible for customers to select cards which are accessible regarding their spending routines and fiscal status regardless if the cards have an annual fee or not.

The move to cut down on the free credit cards for life abiding customers is one that is wells in line with other player practices and that SBI embarked on in its bid to embed a good financial health status. A positive impact is the alteration makes for a healthier and profitable credit card portfolio in the long run.