Are you an active user of credit cards? The credit card industry in our country is expanding very fast. In the last few years, digitalization and awareness among people have given the industry a push. There was a time when people used to think of credit cards as a tool that only the rich could afford. Now, things are a lot different.
In this blog, we will try to understand what are some major reasons behind this change in the industry, the importance of using credit cards for middle-class people, the impact our economy will have, and things like that. If you have doubts about any of these, you can talk to a Loan DSA partner and get some help.
The Current Situation of The Credit Card Industry in India
Let’s start with the current credit card situation in India. You will be surprised to know that in the last year, we have seen almost over 80 million credit cards have been dispatched. If you compare the growth with the previous year, you will notice that the change is significant.
There are several reasons behind this massive development-
- The introduction of digital technology is surely responsible for a cashless economy and easy payment facilities.
- Right now, more people are aware of these financial tools than a few years back.
- people are now more comfortable with online shopping. Especially after the Covid pandemic, convenience has become a major part of our lives.
- Banks and NBFCs are pushing credit cards for their personal gains.
For these many reasons, the results we are getting. In the future, things will be smoother for sure.
What Can We Expect in The Near Future?
Although it is not easy to predict the future, we are going to try to have a rough idea.
1. Digital Banking Is the Future
Indians have just started using digital banking and it is going to be huge in the coming years. It will certainly boost the use of credit cards. Major fintech companies are pushing their digital-first credit cards. Once you get these cards, you can manage them solely online.
2. More Middle-Class Will Start Using These Cards
The population under the middle class is expanding. Up to 2030, almost another 150 million people will go to enter the middle-class sector. The income will rise, and it will bring the need to get credit cards.
3. Availability of New Products
Credit card is just one product from these banks and financial organizations. There will be other, more advanced, and effective cards and tools in the future. It will offer more in terms of special benefits like discounts and will target a specific market.
4. Easy Payment Gateways
At the end of every cycle, you will have to pay the bill. Now, contactless payment and net banking have made things easier for us. There are so many different ways for easy payment. If you are looking to save time and effort, you will surely choose these advanced options. Check out the best app for DSA and get help.
5. Regulations
RBI is the regulatory body for any financial products and services in India. The body is currently trying to improve the situation by investing in infrastructure and security. In the coming days, we are going to have a more secure and responsible credit environment.
Reasons You Must Start Using Credit Cards
We are done with the mandatory things; the time has come to understand some of the practical benefits of using a credit card.
1. Make Your Credit History
The more you use your credit card for bill payment, the better will become your credit history. It will be crucial for you in the future because any bank will first check your credit history and then get your loan approval.
2. Manage Your Cashflow
When you are using credit cards, it is easy for you to manage cash flow. You can use the card to cover your expenses that you will settle under 45-50 days.
3. Get Special Benefits
You must have heard about reward points, cashback, and discounts related to the use of credit cards. There is only one way to get those benefits, and that is by using these cards.
The more you will learn when you use a credit card yourself and understand the situation fully. Talk to an expert to learn more.