Credit Card companies have exposed new business model which makes issuers business profitable. Card Issuers had a huge loss in year 2007-08.
If you are below the CIBIL (credit score) ( 700 points), Borrowers are no longer encouraged to pay the minimum amount due and are instead offered an installment scheme for large purchases which is more of a personal loan than a credit card roll-over. Finally, there is a big thrust on electronic payments. Credit Card companies are targeting new categories of services online, encouraging customers to pay online, offers reward points, offers on shopping and entertainments.
Banks Offers Free Life time Credit cards with free services, EMI services on large use of cards. Low interest rates etc etc. In these days Banks come back with annual fee on cards but this fees is fully adjustable in freebies, air tickets, cash back offers and bill payments and minimum limit use of card in first 3 or 6 months.
In previous 1 or 2 years, a large number of air ticket and trains tickets moved to online, insurance premiums.
At present, banks targeting there saving account holders for issue new credit cards like hdfc bank. SBI Card offers credit cards to fixed deposit holders.