It is tough to keep track of expenses during festival season, for instance, Diwali. You need to spend on new clothes, doing up your house, sweets, gifts and so on.
At such times, a credit card is especially useful. It not only allows you to pay for your purchases in a hassle-free manner but also allows you to build your credit score and earn reward points.
But you need a smart strategy to avoid overspending and running into debt. Here are some Credit Card strategies to help you derive more value from your shopping experiences.
7 strategies for Diwali shopping on Credit Cards
1. Plan how much you can spend
Make a checklist of everything you need to buy for the festival season. Make multiple categories of gifts, electronics, festival decor, food, sweets, beverages, new clothes, and other expenses associated with Diwali spending. Having an estimate of what you need can help you plan finances as per your cash flows.
2. Use your Credit Card for all your shopping
Every Credit Card transaction lets you earn cashback, reward points and other benefits. Hence, it is prudent to put as much of your Diwali spending on your Credit Card and enjoy freebies. Get your credit limit increased if it serves your purpose.
3. Take advantage of Credit Card EMI schemes
You may only be able to meet some festival expenses with current cash flows. Instead of taking a Personal Loan to fund other expenses, a smarter alternative is to take advantage of Credit Card EMIs (Equated Monthly Installments).
This feature lets you break down a large payment into smaller monthly payments. This option allows you to purchase essential items on your list sans the financial pressure.
4. Check out exclusive offers
You can unlock exclusive deals on your Credit Card in categories like food and dining, travel experiences, lifestyle products, electronics, healthcare, and more. Offers during festival times are even more attractive. So, watch for Diwali offers that shave off costs and help you tick items off your shopping list.
5. Redeem your rewards
It’s possible that your reward points have been accumulating, and you have not redeemed them yet. If that is the case, then festival times are an opportune time to do so. Check your reward points and if you have a sufficient balance, redeem the reward points in exchange for items in your Diwali wish list.
6. Derive value from branded cards
If you have a branded card, then it’s a brilliant idea to shop on the platform, airline, or service related to it to score the best deals. For instance, the Flipkart Axis Bank Credit Card offers a 5% cashback on all purchases made on Flipkart, 4% cashback on preferred brands, and 1.5% cashback on selected categories.
7. Always pay your bills on time
Last but not least, don’t forget to pay your bill in the excitement of the festive season! Use technology to your advantage and automate payments using the auto-debit facility so that you never miss a payment.
Credit Card interest rates usually start at 3.6% per month. Add a late payment penalty, and you will end up paying much more than the original price of the products and services purchased on your Credit Card. The best policy is to pay the full value of your bill on time.
Smart usage of Credit Cards helps you fully optimise the benefits of these products this Diwali. Earn cashback, reward points, fuel waivers, free airport lounge access, avail exclusive offers, and take advantage of EMI schemes.