Is Credit Card Necessary in India in 2023?

With this economy, many Indians might begin to wonder if it is even worth having a credit card. We all know that credit cards can give us the financial flexibility and options that we need but having to pay a monthly debt can become quite tedious. This is quite a burden if you are not financially prepared to take on a credit card.

Over the last few decades, there has been a surge in credit card providers in India which allowed millions of people to get a credit card. The improvement in technology also helped with keeping your account safe while also providing you with even more features than ever before. But the thing is, there are also disadvantages to having a credit card, especially in India.


With that in mind, is a credit card necessary in India in 2023? For more information, see the article below.

Image Source: CardExpert

The Different Benefits of Using Credit Cards

There are a lot of benefits to using a credit card in India. The first benefit that you get is that you get easy access to credit. Credit is not always a bad thing as many might think it would be. It allows you to use your card and pay for your purchase at a later date.

Image Source: TechCrunch

The money that you used to purchase does not come from your bank account which means you still got your savings. You also get to build a line of credit when you have a credit card. Having a credit card allows you to build your credit score which means you get more access to different features as well as other financial products such as loans.


If you want to be certain that you have choices for the future, having a good to excellent credit score is the best way to go. Only having a credit card will allow you to accomplish this.

Get Incentives, Perks, and Other Features

A lot of credit cards often help you build your credit score. Some are even made to help you repair your credit score while others allow you to afford the things that you can't normally buy with your cash.

There are also credit cards that reward you for using their card and in return, you even get more rewards. With hundreds of credit cards available in India, there will always be one that fits your lifestyle.


Whether you want an incentive for using a credit card, a huge discount from a single large purchase, or a massive reward such as a free flight or hotel room, you can get them with the use of a credit card.

How to Use Your Credit Card Correctly

Having a credit card does not necessarily mean that you should spend all of your credit immediately. It takes a lot of discipline to become a responsible credit card holder. If you desire to have a credit card, you should always learn how to use your credit card correctly.

Image Source: Experian

First, you need to read the terms and conditions so that you are informed of all the fees that you will receive on your monthly bill.

A lot of people get surprised when they receive a bill with a very high amount at the end of the month and ultimately decide that a credit card is not necessary for them anymore. That is because they were using their credit card incorrectly.

Never spend more than you can afford to repay. You must therefore take into consideration what transactions you need to use a credit card on and what transactions you can use cash on.

Planning Your Purchase

Always plan your next purchase. Never be an impulsive credit cardholder and use your card every time you see something that you like to buy. Impulse buying is one of the primary factors that deter people from credit cards in India as they are not able to control their desire to purchase and they end up having to pay a very large amount at the end of the month.

Make sure that you also leave at least 40% of your overall credit limit for emergencies. This can help prevent you from spending most of your credit limit since. Lastly, avoid using your credit card every day for a single purchase.

Most transactions have an interest in them so if you don't want to have a lot of charges, try to plan your purchase and make sure that you buy in bulk when using a credit card.

What are Some of the Best Credit Cards in India?

If you're planning on getting a credit card, always make sure that you choose the best that many Indian banks and credit card providers have to offer.

Image Source: The New York Times

The ICICI Platinum Chip Credit Card is an excellent illustration of a good rewards credit card where you can earn reward points every time you use the card for a purchase. You don't even have to pay an annual fee when you sign up for the card.

The AU Bank LIT Credit Card is another great credit card that has some of the most flexible features. It is best suited for those who like movies, dining, traveling, and shopping.

You get rewards every time you spend using the card and in return, you can redeem those rewards for more prizes.

Is a Credit Card Necessary in India?

With everything that is said, is a credit card necessary in India? The answer is yes. Credit cards have a lot of benefits and advantages especially if you want to build a credit line.

And while there are instances that owning a credit card can be challenging for you, all you need to do is to practice discipline and become a responsible credit cardholder.

Overall, having a credit card in India has a very positive effect on many of its users. Now, they can afford the things that they like without the financial burden.


Owning a credit card is a financial choice that you should be looking into. With all its benefits and perks, you can enjoy a new sense of financial freedom and become financially flexible. There are a lot of responsibilities in having one but it is always necessary to have a credit card, especially in India.

No posts to display