With the festive season in full swing, discounts and offers are everywhere — from household appliances to the latest smartphones. During this time, credit cards are a mainstay for many shoppers for making big-ticket purchases. But, did you know, your credit card can go well beyond just helping you pay? When used strategically, it can also help you save and earn valuable rewards on your festive purchases. Let’s find out how.
Look for partner offers before you buy
Many banks tie up with leading brands and e-commerce platforms during the festive season. These partnerships typically offer cashback, extra discounts, or bonus reward points, often above the sale price. When shopping on such websites, first check if your card is part of such an offer before clicking on ‘Buy Now’. A few minutes to check could save you some money on your purchase.
Time your spending right
If you make a big purchase right at the start of your credit card billing cycle, you get almost a full month to make the payment. This can make a significant difference financially, especially if you are already juggling multiple festive expenses. But remember, this strategy only works if you pay the full bill on time, because missing even a single payment can lead to interest charges and late penalties, wiping out any potential benefits.
Redeem forgotten reward points
Credit card transactions fetch reward points throughout the year, which we may tend to forget about. The festive season is the perfect time to redeem them, be it to offset a part of your bill, get shopping vouchers, or even convert them into cashback. Check your bank’s app or website to find out redemption options and plan your purchases accordingly.
Use no-cost EMIs to make large purchases affordable
If there’s a high-value item on your festive wish list, such as a fridge or a new laptop, see if your credit card offers a no-cost EMI option. This allows you to spread the payment over a longer period, typically 3–6 months, without paying any interest. However, always read the fine print to understand your repayment obligations and the exact timeline for completing the payments.
Choose the right card for the right purchase
Not all credit cards are created equal. Some give extra reward points on groceries and fuel, while others reward online shopping or travel. Match your spending to the right card to maximise returns. If you have multiple cards, divide your purchases smartly to make the most of each one.
Avoiding pitfalls – What to be cautious about
Festive excitement can easily lead to overspending. Here are some things you must be careful about. First, keep your credit utilisation low, ideally under 30%. Going beyond can not only make repayments tougher but also impact your credit score. Second, pay your bill in full each time as the interest on unpaid balances can erode any discount or cashback-related savings.
Using your card strategically can truly pay off during festive spending. The right card can fetch you higher rewards on big-ticket purchases, helping you save on festive purchases. Plan your buys, choose offers wisely, and stay disciplined with repayments so that you can celebrate without worrying.
(The author is the CEO at BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar)
