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5 Useful Tips For Using A Credit Card This Festive Season

The market has witnessed a long-term low this year. If the COVID-19 pandemic is keeping you worried about financial security, consider this the best time when brands and vendors are coming up with huge discounts and offers for their customers.

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The festive season is around the corner that not only brings celebrations but also comes with big-ticket purchases. Considered an auspicious time for buying gold, silver, and other precious items, many people use credit cards to strategically manage their expenses. However, the management of credit funds has to be backed by a sound financial discipline to avoid the debt trap.

The market has witnessed a long-term low this year. If the COVID-19 pandemic is keeping you worried about financial security, consider this the best time when brands and vendors are coming up with huge discounts and offers for their customers.

Before moving ahead, here are a few smart spending tips that one should keep in mind while using credit cards and preserving their financial health during this festive season,

Avail credit card benefits

During the festive season, many merchants and retailers collaborate with specific banks to provide a different range of offers on credit cards. While shopping during festive days, check for the offers that come in the form of – cashback, discounts, vouchers, coupons, etc. You may also search for festive offers online that are available on your credit card and check the outlet or online platforms where the offers will be valid. Additionally, when making a purchase from a credit card, you usually get reward points. You can redeem them at the right time to avail maximum benefits on your festive shopping.

Ask for an increase on the credit limit

If you have a good credit score or payment history, this could be the right option for you. Before getting worried while foreseeing the big purchases, you must recall your payment history and ask the bank to increase the credit limit on your card. It works best during the festive season as the bank tries to provide financial aid to their valuable customers with festive shopping. Instead of taking loans or borrowing money from your family and friends, explore the options available on your credit card. Give a good try to increase the credit limit which helps in maintaining social dignity in the near future.

Avail credit card offers on gold

Dhanteras and Diwali are being celebrated across the country and Indians consider this as an auspicious day to purchase Gold and Silver. If you’re also among them, check the offers available on your credit card. The leading jewellery brands partner with banks to help customers in making easy and beneficial purchases from their store. During the festive season, you can find about the offers available with your bank on purchasing gold from credit cards. These can usually be availed in the form of cashback and discounts.

Split the cost in low-interest EMIs

Usually, the festive purchases are big tickets and it is beyond a card holder’s immediate repayment capacity. The credit cards help the customers in breaking the burden of the cost in low-interest EMIs to manage their overall financial health. The EMIs can be made on the full amount or a part of the credit card bill, as per the feasibility of the cardholder.

Furthermore, the flexibility of setting the tenure of the EMI can help in repaying the dues at a much lower cost.

Clear the dues on time

Making a payment through a credit card is quite similar to taking a loan. Repaying the dues on time holds great importance in maintaining a credit score. Make sure you clear the pending dues before commencing with the festive shopping to attain maximum freedom in spending and availing offers. Do not forget to plan the repayment of bills post the festive shopping as this will help in saving you from hefty penalties and a negative credit score.

Apart from considering the aforementioned tips, it is imperative to be a smart shopper – especially when it comes to availing offers. Compare the prices before getting blown with the discounts as some of them are made just to tempt the customers to make a purchase. Be a smart shopper as the first and foremost goal is to reduce the financial burden and not to get into a debt trap.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

AMIT Kumar

Founder of GalaxyCard

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