Credit Card: Gen Z Goes Wild for Shopping and EMIs; Rapidly Signing Up for Credit Cards—Report Reveals Surprising Trends

Credit Card: Credit card usage is no longer confined to cities; it has seen rapid growth in rural areas as well. Gen Z, in particular, is increasingly adopting credit cards across the country.

Credit Card: Times have changed significantly; while mobile phones were once the preserve of adults, even young children use them today. This shift extends beyond mobile phones—Gen Z is rapidly adopting credit cards. Usage is no longer limited to residents of major metropolitan areas; youth in smaller towns are also actively using them.

What does the report say?

According to the report, today's youth are increasingly utilizing credit cards and other loan products. Notably, within just three months of acquiring their first credit card, approximately 28% of Gen Z customers had accumulated an outstanding balance exceeding ₹25,000. Furthermore, 69% of Gen Z users acquired a second credit product within a year of obtaining their first credit card. Beyond just shopping, Gen Z is making greater use of EMIs and other credit products than ever before.

Gen Z Leads the Way

According to the report, 50% of first-time credit card holders were under the age of 30.
46% of first-time credit card holders hail from rural areas.
It is evident that credit card usage is rising rapidly among both urban and rural populations.

Steady Rise in Credit Card Usage

By March 2026, the number of credit card holders had reached 52 million (5.2 crore). During this period, the number of active credit cards surged nearly fivefold, reaching 107 million (10.7 crore).