Millennials and Gen Z are progressively opting for credit cards in order to access financial independence and enjoy flexible repayment options. In 2025, technological advancements have streamlined the process of getting a credit card online and managing it digitally, too!
With the ease of application and sheer number of options available, you can now choose a more suitable option rather than settling for the first card offered to you. That said, using credit cards smartly is non-negotiable in order to avoid debt.
Growth in Credit Card Adoption
Credit card usage is rising fast in India. A 2024 TransUnion CIBIL report shows a 30% rise in penetration over three years, and this is mainly because of the young users.
Over half of all card payments are now contactless. UPI-linked credit cards and cashless policies are making credit cards even more accessible. In 2025, credit cards are becoming a key part of everyday spending with noticeable improvement in the following criteria:
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Virtual Cards with UPI Integration
You can now link your instant virtual credit card to UPI apps. This allows fast, secure payments without a physical card.
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FD-Backed Cards for New Users
First-time users can get a credit card by booking a fixed deposit, which does not require any credit history. You can deposit the amount as an FD in the same bank from which you are planning to get a credit card. You will get a credit limit based on the deposit amount.
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More Rewards and Cashbacks
Cards now offer more cashback and exclusive deals across categories. Many focus on travel and lifestyle benefits, along with ways to earn accelerated reward points. Cards such as the One Credit Card come with offers and benefits across all purchase categories, further adding value to daily and occasional spending.
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Security with Biometrics and AI
Credit card lenders use fingerprints, biometric authentication, and AI tools to detect fraud. These features make sure all your card transactions are secure.
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Secure Access to Credit with Virtual Cards
Today, you can get an instant virtual credit card to make online purchases with certain issuers. These cards mask your card details and reduce the chances of fraud, making them a safer choice. They also help you access credit immediately without waiting for the physical card to arrive.
Credit Card Benefits in Shopping
Credit cards offer more than just redeemable points. You can save on all eligible purchases, especially during online shopping. Credit cards come with benefits like:
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Rewards and Cashback
Some cards offer air miles, lounge access, and discounts. Cashback cards are also popular, and other payment modes do not offer such perks. You can also choose beginner-level cards, which offer rewards and cashbacks in almost every category.
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Easy EMI Conversion
You can use your credit card to buy expensive items and convert them into smaller EMIs. Most debit cards do not offer this option. For example, with One Credit Card, you can convert your purchase for transactions over ₹2,500 into EMI with a tenure ranging from 3 to 24 months with zero interest added.
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Strong Security
Credit cards come with OTP, CVV checks, and two-step authentication to prevent fraud during transactions. If you lose the card, you can block the credit card online quickly through the app. With the One Credit Card in hand, you can reset your card PIN through its OneCard app, and even use the toggle feature to enter OTPs more seamlessly than ever.
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Shop Internationally
Credit cards also let you shop from global websites and e-commerce platforms. You can book tickets, order clothing, or gadgets and get discounts or avail other exciting offers.
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Improving Your Credit Score
Paying credit card bills on time can help you boost your credit score over time. Regular use can build a strong credit history and credit mix. This can also open the path for easy loan approval with better terms.
Credit Cards Myths to Know in 2025
Credit cards offer convenience and flexibility, but many users fall for myths that impact their choices. Some of the common ones are:
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Carrying a Balance Improves Your Score: It is not true. Always paying your full bill helps improve your credit score over time. Carrying a balance only adds interest to your repayments, making them hefty.
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Closing Old Cards is Good: It is not true. It can lower your total credit limit and shorten your credit history. Keeping old cards open if they have no fees can be a great way to boost your credit score.
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One Card is Enough: Having just one card limits your credit profile. You can use 2-3 cards for different needs, such as secured and unsecured cards, which also depict a good credit mix in your credit report.
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Credit Cards Cause Debt: Cards do not cause debt unless you are not paying the complete balance on time. However, irresponsible behaviour with your credit card, such as late or defaulted payments, can cause debt.
How to Avoid Overspending
Incorrect and unplanned usage of a credit card can lead to debt instead of saving your money. Here are some ways to avoid it and stay financially secure:
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Choose Your Card Responsibly
Pick a card that suits your goals and spending habits. Look for low interest rates and minimal fees. You can choose secured or low-limit cards if you are new to credit, which will also help build your credit score.
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Create a Budget and Follow
Track your income and spending regularly. Plan for bills, savings, and debt payments while cutting down on non-essential expenses. Use budgeting tools or apps to stay on track. For example, the OneCard App lets you set a budget across different categories and will alert you in case you near this limit.
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Spend Smartly
Always try to purchase what you need, not what you want. Compare prices and use discounts or coupons. This can limit your overspending habit and help you to pay the dues on time.
Credit cards offer a secure and convenient way to shop while providing offers and benefits. Their built-in security features, reward programs, and budgeting tools create a complete solution for safe and rewarding transactions.
You can choose One Credit Card to enhance your experience further with benefits for both daily needs and luxury purchases. It allows you to enjoy benefits like an additional 5X reward points on your top two highest spending categories every month.
It has no reward redemption fees, so you can collect points and use them for bigger expenses. Apply for this lifetime-free credit card online and enjoy your credit card journey!
