India’s first-time credit cardholders are becoming younger and more geographically diverse, according to TransUnion CIBIL’s latest research whitepaper, Beyond the Swipe 2026: How India Uses Card as a Credit Instrument. As of March 2026, 50% of New-To-Credit Card (NTCC) consumers were aged 30 years or below, up from 43% in March 2022. Meanwhile, 46% of NTCC consumers resided in semi-urban and rural markets, compared with 42% four years earlier.
India’s credit card market has expanded significantly over the past decade. Between March 2016 and March 2026, the number of cardholders grew 3.6 times from 1.4 crore to 5.2 crore. Outstanding credit card balances increased 8.3 times from ₹0.4 lakh crore to ₹3.1 lakh crore, while active credit cards rose five times from 2.1 crore to 10.7 crore.
The study found that first-time cardholders are also entering the market with more established credit profiles. Around 25% of NTCC consumers already had three or more open credit products, indicating that the first credit card is increasingly being added to an existing credit wallet rather than serving as the consumer’s first formal credit product.
Mr. Bhavesh Jain, MD & CEO, TransUnion CIBIL, said, “The decade-long expansion of India’s credit card market is now being shaped by a more active and varied borrower wallet. Many consumers use cards alongside small-ticket personal loans, consumer durable loans and other short-tenure credit products. This reflects a consumer credit wallet that is becoming deeper, more formal and more responsive to everyday consumption needs. At the same time, it places greater responsibility on the ecosystem to ensure that growth remains aligned with affordability, repayment capacity and the borrower’s overall obligations. As card adoption continues to expand, the focus must remain on widening access to formal credit while preserving credit quality, borrower confidence and long-term portfolio resilience.”
The changing credit behaviour is particularly visible among Gen Z consumers. Among those aged 24 to 30 who entered the card market in 2024, 31% already had two or more open credit accounts when they received their first card. Around 69% opened another credit product within 12 months of receiving their first card, compared with 55% of same-age Millennial consumers in 2018.
Mr. Jain added, “The role of the first credit card is also changing in a way that deserves close attention. Many new cardholders are still early in their formal credit journey, but a growing share is entering the card market with prior credit experience and with other credit products already present in the wallet. This is especially visible among Gen Z consumers, who are adding products sooner and showing stronger engagement with their first card issuer.
“For lenders, the opportunity is not just to acquire the customer at the point of first card issuance. It is to earn trust, remain relevant as the customer’s credit needs evolve and build a relationship that supports access to credit while maintaining discipline across the lifecycle. That balance between growth, loyalty and responsible credit behaviour will be an important marker for the next phase of India’s card market.”
