One-third of credit cards sleep at home

In Korea credit card companies are loosing out on millions of dollars, due to credit cards that have not been used in over a year, after they were issued.

These new credit cards cost $13 to produce (17,000 won) and with almost 83.5 million issued in that time and a third of those not being used, has cost the 8 credit card only companies in excess of $43 million.

So why not be more selective of whom they send cards out to? Well in Korea the customers are far less selective of which credit card they use, so if the credit card issuers refuse to keep up with the demand and dish out cards to all and sundry, then they will begin to loose customers.

It has been found that any credit card issuer who refused to send out a new credit card to a customer, would simply loose that customer, as they seek the business of another credit card company. To most Koreans it is about the service and not the card.

It is hoped that the number of sleeping credit cards will soon drop, due to the credit card issuers keeping an eye out for customers who apply for card after card and don’t use them and being a little more rigged on who gets a credit card in the first place.