UPI & Loans Beat Cards: Is Your Credit Profile Ready?
Most Indians are skipping credit cards and using personal loans and UPI credit instead. Only 1 in 4 credit-active Indians has a card. Here is what this shift means for your credit score and borrowing power.
Only 5.2 crore Indians hold credit cards — fewer than those who own a two-wheeler
Most Indians build credit through loans before ever getting your first card
Key Takeaways
Check your CIBIL score for free on GoCredit — a score above 720 significantly improves your chances of getting a credit card approved.
If you have an active personal loan with clean repayment history, apply for an entry-level credit card now — banks see you as lower risk.
Use UPI credit lines responsibly by repaying the full amount each billing cycle to build a positive credit trail without accumulating interest.
Most Indians are skipping credit cards and using personal loans and UPI credit instead. Only 1 in 4 credit-active Indians has a card. Here is what this shift means for your credit score and borrowing power.
Here's what happened: India has just 5.2 crore credit card holders — only 25% of all credit-active Indians, showing cards are still a niche product.. First-time borrowers make up just 8% of new credit card issuances, meaning banks prefer giving cards to people with existing loan histories.. UPI-based credit like credit lines on UPI and personal loans are becoming the primary way Indians enter the formal credit system for the first time..
What you should do: Check your CIBIL score for free on GoCredit — a score above 720 significantly improves your chances of getting a credit card approved.. If you have an active personal loan with clean repayment history, apply for an entry-level credit card now — banks see you as lower risk.. Use UPI credit lines responsibly by repaying the full amount each billing cycle to build a positive credit trail without accumulating interest..
Pro tip: Taking a small personal loan and repaying it on time for 12 months can boost your CIBIL score by 40–60 points — making your first credit card approval far easier.
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- [1]“UPI and personal loans are replacing credit cards in Indians' wallets: CIBIL” mint - money · 8 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.