Credit card use on rise and so is demand for them

The findings are based on a survey conducted by TransUnion-Cibil, which surveyed 1,088 urban adults online between July 13 and 18.

"The results demonstrate a clear increase in credit card use among urban consumers over the last 12 months as more than half (57 per cent) of credit card holders reported using their credit cards more often now than they did a year ago," the survey said.

Survey respondents reported various reasons for using their credit card, adding that 19 per cent of people in cities are likely to apply for a credit card in the future.

On the ways they have used the credit cards during the last 12 months, 59 per cent of the participants said they used their credit cards to pay bills; 53 per cent used for large purchases; and 45 per cent for other payment to gain discounts and other rewards.

"The most common reason among the 18-24 year-olds use credit cards over other forms of payment is because they don't like to carry cash (24 per cent) against 14 per cent of credit cardholders aged 45 years and older," it said.

The older adults aged 45 and above, use credit cards over other forms of payment, because it enables them to make a purchase now and pay for it later (33 per cent).

Only 13 per cent of those card holders aged 18-24 selected the same as their primary use for credit cards, instead of other forms of payment.

Nearly 29 per cent said in the past 12 months, they spent more on the credit cards than they had budgeted and 20 per cent said they have taken longer than planned to pay down credit card balances, the survey said.