For many Indians, making payments by credit card can be a daunting task. The average Indian isn’t in the habit of paying for items with plastic money, unlike his/her American counterpart, for whom paying with plastic is a way of life. For every 100 Indians, there are 3 credit cards in use, and for every 100 Americans, the figure is at 32 credit cards. Of course, as a society, the USA is more debt-ridden than Indian society. The reliance on payment by credit cards is so great, Americans will spend as small an amount as $1.00 using cards. Nonetheless, the efforts of the Reserve Bank of India to make India a cashless society have paid off to a certain extent, with more and more credit card users increasing with each year. Before applying for a credit card, a comprehensive credit card comparison must be done as the decision to get one is dependent on individual needs. Several people choose credit cards issued by the banks that they have accounts in. This makes bill payment easy. The Reserve Bank of India data shows that the State Bank of India Card (SBI Card) issued 4.6 lakh credit cards in FY21, while private sector banks like HDFC Bank issued 4.8 lakh cards. ICICI Bank, another privatized bank, saw 1.6 lakh cards issued in FY21.
The credit card boon
Indians have recognized that credit cards can be a better option to pay for goods and services compared to traditional cash. As the trend of using credit cards is growing, albeit slowly, in metros, smaller towns of India have made more inquiries about how to apply for a credit card. In October 2019, the Reserve Bank of India saw a rise in inquiries, by 23%, in small towns, compared to a 10% decline in large metros. More banks and financial organizations have made it relatively easy to obtain a credit card these days, corresponding with the Reserve Bank of India’s aim to make India a digital economy. By offering competitive rates of interest and rewards, many people in Tier-II and Tier-III cities hold credit cards now and use them responsibly.
Towards a cashless economy
Although online mobile payments are leading in cashless transactions as of today, credit card transactions are also becoming famous. Millennials make up close to half of the Indian workforce today, and with the rise in spending power, the demands for credit cards are also growing, especially by this demographic. Some 60% of the consumers want to hold a credit card for the rewards that it may bring with it. Credit cards also afford the payment of goods and services whenever and wherever you wish. Average Indians need not worry about how to apply for a credit card. If you have an Aadhaar card, PAN Card, and a regular source of income, you can easily apply for a credit card.
Credit card comparison
Whether you want cashback, miles on airlines, or rewards, there’s a credit card to match every requirement. It’s noteworthy to point out that there is no “one-size-fits-all” card, as how much you spend and where you spend ranges between individuals. Here are some credit cards to explore and make a credit card comparison according to your requirement:
- Entry-level cards – For beginners, and reflective of brands they are tied with, the USP of these is that rewards through these cards are direct cashback from the brand. The ICICI Amazon Pay Card and the Axis Flipkart Card are examples of these.
- Lifestyle cards – These are cards that serve an all-round purpose, used by a vast majority of salaried people. The SBI Prime and the HDFC Regalia are examples.
- Other cards -There are premium cards for high net worth consumers. There are also business credit cards that tie in with airlines for business travelers to earn miles and hotel stay rewards.
One of the best credit cards you can select is the Bajaj Finserv RBL Bank SuperCard which gives you control of 4 functions in one. It acts as a credit card as well as an EMI card, offering loans of 90 days at a mere 1.16% interest rate per month. With great rewards and a 5% cashback on down payments, you can apply for it easily online.