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Top 5 Reasons why credit card penetration remains low

#1: Unawareness of the benefits of credit cards.

  • Cashback rewards

  • Discounts

  • Protection against fraudulent transactions

  • Rewards points

#2: Afraid of getting into debt.

  • People have a fear of get into debt.

  • Many people don't understand that credit is a tool that can be used to build wealth.

  • Credit can be used to start businesses, invest in stocks or real estate, or pay for education.

#3: High-interest rates.

  • Many Indians believe that credit card interest rates are too high.

  • Banks need to offer lower interest rates, especially for first-time cardholders.

#4: Bad credit score

  • Many Indians do not have credit histories.

  • Some borrower are unable to keep up with the credit repayments in the past.

  • This makes it difficult for them to obtain a credit card.

#5: Lack of trust in banks

  • Many Indians do not trust banks.

  • They are afraid of hidden fees, fraud, and poor customer service.

  • Banks need to be transparent and offer excellent customer service to build trust with the public.

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Disclaimer : Above content purely for Educational purpose, Do your own research before taking any position.

Source : Books

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