India’s festive season has brought with it not just joy and celebration, but also a sharp rise in credit card usage.
According to recent spending patterns, over 42% of credit card holders have spent ₹50,000 or more this season — marking one of the highest spending surges in recent years.
The rise highlights strong consumer confidence and an appetite for big-ticket purchases amid offers, EMIs, and cashback deals.
Festive Fever Drives Spending
With Diwali and Dussehra shopping in full swing, Indian consumers are opening their wallets wide — especially on electronics, travel, home appliances, and fashion.
Financial experts note that easy EMIs, reward points, and festival discounts have boosted credit card transactions across metro and tier-2 cities alike.
“This festive period has witnessed not only higher spending, but also a larger number of users opting for multiple card usage,” said a senior banking analyst.
Spending Snapshot
| Category | % of Users Spending ₹50K+ | Top Spending Segments |
|---|---|---|
| Metro Cities | 48% | Electronics, Luxury Shopping |
| Tier-2 Cities | 39% | Home Appliances, Travel |
| Millennials (25–40 yrs) | 46% | Online Shopping, Gadgets |
| Gen Z (18–24 yrs) | 33% | Fashion, Dining |
This indicates that urban millennials and professionals are the biggest contributors to festive card spends.
Why Credit Card Spending Is Rising
🛍️ Attractive festive offers: Cashback and reward points on festive purchases.
💰 Easy EMIs: Big-ticket purchases made affordable.
🌐 E-commerce growth: Surge in digital transactions on online platforms.
🎉 Consumer optimism: Rising income levels and celebratory spending mindset.
Additionally, contactless payments and UPI-linked credit cards have made spending faster and more convenient.
Experts Advise Caution
While the surge signals strong demand, experts also warn against over-leveraging.
High credit utilization can affect credit scores and lead to repayment pressure post-festive season.
Financial planners recommend paying off dues within the interest-free period and avoiding rolling balances.
“Enjoy festive shopping, but don’t let credit bills spoil your next month’s budget,” an expert noted.
Tips To Manage Festive Credit Card Spending
Set a spending limit before you shop.
Opt for no-cost EMI options instead of full payments.
Redeem rewards and cashback wisely.
Always pay bills in full before the due date.
Track expenses through your credit card app or monthly statements.
❓ FAQ
Q1: What’s the average credit card spend this festive season?
Over 42% of users have spent ₹50,000 or more, with many going up to ₹1 lakh on premium purchases.
Q2: What are the most popular categories for spending?
Electronics, travel bookings, home appliances, and apparel dominate spending lists.
Q3: Are EMIs driving higher spends?
Yes — easy EMI options are making expensive purchases manageable for middle-income groups.
Q4: Will high credit usage affect my credit score?
Yes, if you exceed 40–50% of your limit or delay repayments, your CIBIL score can dip.
Q5: How can I manage festive spending smartly?
Use budgeting tools, track card usage, and pay dues in full to enjoy rewards without financial stress.
Conclusion
This year’s festive season has seen unprecedented enthusiasm in spending, powered by offers, EMIs, and a rebound in consumer sentiment.
While the spike in credit card usage shows economic confidence, mindful spending will ensure celebrations don’t lead to post-festive debt.
Spend smart, earn rewards — but stay within your limits.
Published on : 28th October
Published by : SMITA
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