The goodness of debt for business…

I was trying to apply for an account at Bank and i was declined. Even though it had to take me 30 minutes (through waiting on calls within four days) to gain the reasons of my rejection. However service delivery is not the basis for this issue. The issue is i was denied a credit card on the basis of no credit record.¬† Coming from a background where my parents used to have many credit accounts, my mother planted if not programmed me never to open a credit account. As a child i used to brag about how many credit cards my mother had(Edgards, Smart Center, etc…) to my friends. However she made me learn that it was not good. As i speak they are still busy closing some of their accounts…. Now when a bank informs me to open a credit account psychologically it is inconceivable. I do understand the reasons for the bank for it will give them the assurance in terms of risk that i am competent for a credit card. However it still does not guarantee that i will run the credit card well. Human beings are complex creatures, for they are not robots. One would think that a healthy account with my bank which has been in existence for more than 10 years should serve as assurance. I am also a renting and my landlord has never complaint on me. It is a simple issue of probability which the bank calls risk. I have had a good record with the bank in fact i have two accounts with the bank and now my rent account. One wonders what “factors”, “variables” and “constants” they use for their risk assessment. For at the end of it all weather one has credit record or not there is not absolute guarantee that the same behavior will be observed, its just a good assumption. Hence having been banking for so many years with my bank and thus having three credit accounts¬† should serve as a good assumption as well. I then called the NCR (National Credit Regulator) i was told the same thing “…I had to open a credit account to have a credit record…”. My final analysis is that, i have to be in debt to have a credit card. By implication the bank promotes people to have debts. After all its business, its about relationships if i do not have a debt with some company there will not be any relationship, hence business. So we must not be told that debt is not good, for i am actually told to make a debt, nothing personal its business…