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India has primarily been a market for debit card users with a 38.6 million user as sourced from the Reserve Bank of India. But in the last five years, the market has changed drastically where the number of credit card users has increased. Now, what people are searching for is best credit card in India or simply the best credit card to opt for because of the online platform which has opened the gateway for people to have at least one reason if nothing for having a credit card. The reason may vary from person to person but let's take a look at the top five reasons why credit cards are becoming popular in India.
Top five reasons why credit cards are becoming popular in India
Bonuses on Signup
Offers like getting a bonus in the form of reward points always excites the customer. These days most of the banks offer signup bonuses to the applicants which are making the Indian population opt for the credit card. The only thing that is required for getting a good signup bonus is that the applicant needs to have a decent bank balance. The reward points with other additional benefits have driven the young generation in India to search for the best credit card in India for getting optimum benefits.
Additional Rewards and Points
These days both online and offline medium gives the additional benefit of earning extra rewards points through credit card. Like, whether it is shopping online or looking for a travel destination if you have a credit card then you will always get some extra privileges. Apart from getting discounts most of the credit card has a point system.
Both the older and the younger generation in India these days focus on savings. So, most of the Indian customer is opting for having credit cards from those banks who have a tie-up with multiple fashion chains and restaurant. This gives them a unified solution as well as a better option for getting more additional points.
Safety
When it's about financial dealing, safety always comes as a priority. So, using a credit card for payment makes it a lot easier for the customer to avoid loses and frauds. In case of using a debit card, there is always a chance of insecurity in form theft and fraud. On the other hand, if any fraudulent activity occurs with your credit card, the bank will notify you about the transaction and resolve the matter on their own. Moreover, having a credit card also lower the chances of check bounce which otherwise could affect your credit score even if it isn't a fault on your side.
In India, the rising case of fraudulent activities has propelled a large number of Indians to opt for the credit card. Since financial security is always a fast priority for both the customer and the bank, most of the Indians are opting for the credit card as it also gives them financial security. So, when it's about safety issues searching for the best credit card in India can give you a secure solution.
Universal Acceptance
The best part about the credit card is that it is universally accepted. In the case of online shopping, certain transactions can only be done by a credit card. From hotel room booking to online shopping, everything can be done with the help of a credit card. Moreover, when you are travelling to foreign countries credit card is the best medium for making payments as it's universally accepted.
The trend of travelling to a foreign country has risen in India. This makes more Indians opt for the best credit card in India as it is considered the best medium for making transactions. Apart from that, the trend of online shopping for expensive items has also propelled many Indians to opt for the credit card as after a certain amount the seller does not accept the debit card.
Grace Period
This is something you can only enjoy if you have a credit card. The thing is that when you purchase a debit card, the money is deducted immediately. But, when you make the same transaction through a credit card, the money remains in your checking account until the credit card bill is paid.
Hanging on to your fund for this extra time helps you in two ways:
First, the postponing of payment even if it is for a small-time period will add to your wealth. It means that your cash will be there in the bank for the extra period for which you will earn interest.
Second, if you use a credit card for making the payments then, you don't have to keep a track of your transaction since you will always enjoy the benefit of availing things on credit even if your actual balance gets used up.
The extra benefit of credit card propels the Indian market
When it is about having a credit card you will always find enough good reason to answer all your questions. The influence of western culture and business in India has driven the demand for having a credit card as it always comes with some extra facilities. Moreover, apart from the top five reasons that are discussed above, there are other reasons like insurance facility and chances for improvement of credit score which propels a large number of Indians to opt for the best credit card in India.
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