CIBIL Report: India's Gen Z Embraces Credit Cards at a Faster Pace Than -

CIBIL Report: India’s Gen Z Embraces Credit Cards at a Faster Pace Than

Millennials

It is observed that India’s Gen Z population has become one of the fastest growing

segments in terms of the usage of credit cards in the country, even surpassing that of

millennials’ in adopting the use of credit cards, according to a recent CIBIL report.

This trend is a result of the changing perspective of young Indians regarding the use

of credit not only for borrowing but also for the purpose of financial management and

maintaining a good financial profile.

Being brought up in an era dominated by the Internet and mobile phones, young

Indians are more comfortable using internet banking and other payment applications

compared to previous generations. In consequence, young professionals are getting

credit cards at the very beginning of their working career because of cashbacks and

rewards points offered by credit cards along with convenient EMI options.

This indicates an increase in the financial awareness of Gen Z population, who

understand the importance of having a good credit score. Responsible credit card

usage can help create a good credit history, which in turn improves chances for

further financial products like education, automobile, or home loans.

But it should be noted that experts warn that the fast rate of credit card usage should

go along with responsible financial behavior. Excessive expenditure, lack of timely

payment, and large amounts of outstanding balances may adversely affect one’s

credit score and result in debts. Financial literacy continues playing a significant role

for people using credit cards for the first time.

Despite the fact that millennials continue dominating among current credit card users

in India, the fast growth rate of the Gen Z population using credit cards shows a new

tendency in the consumer’s behavior and preferences, which are determined by the

development of digital finance.

With further development of the digital economy in India, Gen Z is expected to take an

active part in the credit card industry. Their fast integration into the field is a sign of

change in their financial behavior.

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