5.2 Crore Card Users: Is UPI Credit Beating Your Card?

Most Indians are skipping credit cards and using UPI and personal loans instead. With low card penetration and rising digital credit, there are now smarter, cheaper ways to borrow and spend in 2025.

Here's what happened: Only 5.2 crore Indians hold credit cards — just 25% of people who are already active in the credit system.. First-time borrowers make up just 8% of new credit card issuances, meaning banks prefer existing customers over new users.. UPI-based credit lines and instant personal loans are filling the gap, growing faster than traditional credit cards among new borrowers..

What you should do: Check your CIBIL score for free before applying for any credit product — a score above 750 unlocks the best personal loan and credit card rates.. Compare UPI credit line products (like RuPay Credit Card on UPI or BNPL options) against your credit card's interest rate — you may pay less.. If you're a first-time borrower, consider a secured credit card (against FD) to build a credit history before applying for unsecured cards or large loans..

A personal loan EMI reported on time builds your CIBIL score faster than a credit card you never use — active repayment history weighs more than idle credit limits.