text: what is the impact of credit cards on a nation's economy? the pros and cons more purchasing power to the people., credit cards indirectly infuse more funds into the market.,  for example in a country where a total of $ 120,000 millions are spent in cash, that is $10,000 mn per month, and if credit cards are used, for one month's purchases, then one half months' purchases would be made additional for that period of 12 (a total puchases of 13.5 months could be effected in 12 months, assuming 45 day credit period) , to that extent it will have a positive effect on the gdp. that the following are the possible effects., 1. higher inflation 2. increase in the market size 2. cheaper credit (provided if you repay in full in time) 3. if large amount of credit cards dues are not recovered they could have a bad effect on the economy as a whole,