Indians are using credit cards more than ever. The country now has 11.6 crore active cards, almost double the number from four years ago. In December 2025 alone, people spent Rs 2.05 lakh crore using them. Most of this spending happened online, which shows how easily credit cards have blended into India’s digital routine.
But behind this booming adoption is a quieter truth. People love their credit cards, but most struggle to use them wisely, and that struggle often leads them toward debt.
Dev Patel, quantitative research analyst at 1 Finance, believes the credit card story in India is being misunderstood.
“India is not falling out of love with credit cards. It is falling in love with the idea of owning them,” he says. After years of using UPI to pay for everything from tea to rent, the shift felt natural. “UPI made digital spending effortless. Credit cards slipped right into that behaviour. The habit was already built,” he adds.
SPEND WISELY, DON’T MAX OUT YOUR CARD
A credit card lets you pay with the same ease as UPI but with a short interest-free window of 40 to 45 days. Add the possibility of earning rewards, and urban consumers see it as a smart financial tool. The problem starts when excitement takes over judgment.
People often overspend without realising it. They forget where the money went. They get influenced by social media posts promising free luxury travel if they “max out their cards.” Patel says this misunderstanding is common.
“Social media has convinced many that maxing out a card will get them a free holiday. That’s not how it works,” he says.
DON’T FORGET TO CHECK THE REWARDS
He calls it a “half knowledge and execution” problem. People know that rewards exist but do not know how to earn them efficiently or redeem them correctly.
Every bank has its own app or portal where better offers and accelerated rewards live. These tools exist, but they are barely marketed.
“Most users have no idea these portals exist. They hold the right cards but use them the wrong way,” Patel explains.
This gap becomes even clearer when you compare how different people use the same card. Two people may have identical credit cards but get entirely different value from them. One may travel often and benefit more. Another may hardly fly and get nothing.
“The card doesn’t fail. The mismatch between the product and your behaviour does,” Patel says.
DON’T ACCUMULATE TOO MANY CREDIT CARDS
And then there is the growing trend of collecting multiple cards. People believe they are being strategic by using one card for travel, another for online shopping and another for groceries. But Patel warns that this usually backfires.
“Collecting too many cards creates mental clutter. One due date is manageable. Four is anxiety,” he says. The stress outweighs the rewards. “Reward greed is never worth your peace of mind,” he adds.
Credit cards in India are quietly evolving. They are no longer simple tools for borrowing. They now work like structured instruments that demand discipline. Banks have started discontinuing or devaluing premium cards where the rewards cost more than the fees they collect.
For Patel, this is a sign that financially aware users have learned to extract maximum value, forcing providers to rethink their offerings.
HOW TO CHOOSE THE RIGHT CREDIT CARD?
For everyone else, Patel believes the first step is clarity. “Before choosing a card, you need to know where your money goes every month. Without that clarity, no card can help you,” he says.
A travel card with a Rs 10,000 fee only makes sense if your travel habits justify it. A card that rewards quick commerce is pointless if you live in a tier-3 city where the service does not exist. “People compare cards against each other. They should compare cards against their own life,” he adds.
Ultimately, using a credit card well is less about chasing rewards and more about understanding your own behaviour. It is about matching the card to your lifestyle, not the other way around. Patel believes one or two cards are enough for most people, as long as they fit naturally into their spending habits.
India’s relationship with credit cards is not weakening. It is maturing. People still love swiping their cards. The challenge now is learning how to swipe without slipping into debt.
