The rising popularity of Credit Cards

India, the developing economy, is witnessing a new revolution every fortnight. Yes, fortnight might sound like an exaggeration, but you would have understood that we have used it to indicate the concurrent set of changes entering this era.
The economy is booming and purchasing power is increasing by leaps and bounds. It is the age of malls, shopping complexes, multiplexes, buying cars, expensive watches, owning a house and most importantly flashing a string of "Credit Cards". Some like to flaunt it, some misuse it, some underutilize it and some benefit from it. Ultimately, we all love to own credit cards.


Need Driven
 
"Credit card is the trend of today." We hear this statement from lot of people. But if you sit back and think, you will understand that the increasing trend to use credit cards in India is more need driven rather than just being a fashion statement. India is on a continuous move towards new advancements. People have become more mobile and it is becoming riskier to carry cash every day. On the other hand, inflation has added to the expenses. So, to bridge the gap between the purchases and inability to carry cash, the modern Indian generation is opting to use credit cards.
Safe Sides

It is not just about the comfort of carrying a plastic rectangular card in pocket, but it is also about the simple mode of payment. Using credit cards is also lot safer than carrying large amounts of cash. If you are one of the top executives in a company and travel a lot by flights, stay in good hotels, the payment by credit card is a wiser step. Paying by your credit card can help you present the bill as well as the copy of credit card statement for reimbursements in the company. Credit cards have become a convenience to the travelers and business people.
Credit cards also help you in planning things. For example, you want to gift a washing machine to your wife but do not carry enough balance, credit cards enable you to purchase it right now and plan your EMIs. This lessens the pressure, gives you more scope of making plans and also helps you gain many of your favorite products the moment you want them.

Figure out the figures

Statistics show that there were about 22 million credit cards in India in January 2007. The number of credit cards has more than doubled in past three years. This increase can be attributed to the increasing consumerism in India, which is further expected to boost owing to the intensifying competition between credit card companies and more lucrative offers in the market each day. Moreover, apart from issuing of credit cards, the credit card transactions have also doubled from the FY 2003-4 to 2005-6. The current growth in the credit card industry is estimated to be around 28 percent, which is further predicted to be on an increase. Moreover, the industry experts believe the increase in the transactions should be around 20 percent each year.

As you see these figures, you can easily predict the growing popularity of credit card. The introduction of credit card facilities to pay for mobile, electricity, movie tickets and other related transactions have also contributed to the growth of plastic money in the country. Today, the payment structures are getting easier. In an aim to overpower the peers and to sustain and prosper themselves, the Banks and financial institutions have started cutting down the interest rates and offering lucrative deals. The competition in industry has further fuelled the usage of credit cards in India. The banks are cutting down on interest rates and over head charges owing to the increasing competition. All this will certainly add up to this growth of credit card industry, and if you move in the sensible direction with sensible handling of cards, this growth is for good.

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