It’s the season to be jolly! India comes alive every festive season with seasonal gifts, party props, new clothes, and jewellery. With malls and online stores stocked up to welcome customers, it is also the time credit cards become your best friend. Credit cards give you the freedom to shop effortlessly, but they also have their perks, which come in handy. In partnership with banks, brands come up with several festival offers and discounts that make it easy on the pocket. Let’s look at how credit cards can transform your life this festive season, from reward points to bank partnerships.
Advantages of using a Credit Card for shopping
- If you love to browse online stores from the comfort of your home, having a credit card with exclusive discounts or reward points is a great choice. Sometimes you can enjoy the rewards of certain bank partnerships which offer an additional discount on minimum cart value.
- While you continue spending, the money in your savings account stays with you, earning you regular interest every month. A credit card gives you the luxury to spend without the need to part with your money immediately.
- Reward points are a great system. Add reward points to your card that can be redeemed later. As you spend, you also get points that can be used against retail purchases, aeroplane tickets, cashback, and more.
- Enjoy the freedom to split your expense over a period of time with EMI to ease the burden of repayment. Banks offer lucrative deals such as no-cost EMI or minimal interest rates that can be capitalised this festive season.
If you are planning to make the most of your credit card limit, here are four essential tips to consider.
- The festive season is a great time to shop for essentials and splurge on luxuries. Make use of deals and offers at stores and online. Almost all brands have great discount deals on credit cards, such as cashback offers, instant discounts on cart value, and more. Use these to your advantage while purchasing online. For instance, electronic stores offer exchange and cashback offers that work out great if you are looking to make such purchases.
- Reward points are one of the most popular benefits of owning a credit card and can help maximise your savings. Sometimes certain credit cards are called reward cards and offer 2x to 5x reward points on purchases than a regular credit card. Make purchases against reward points by converting them into brand vouchers. To make the most out of your reward points, keep track of the reward points on your credit card and use them to make part payments on your purchases, convert them into vouchers for brand purchases or save on them with cashback.
- Make use of a zero-interest or no-cost EMI facility on your credit card. While EMIs come with a certain percentage of interest based on the type of instalment, no cost or zero-interest EMI facility allows you to pay without incurring any additional costs. This is a great option to choose if you are making any high-value purchases.
- Plan all your festive season purchases at the start of your credit cycle. This way, you can enjoy the luxury of time as there are at least 30 days to settle all the outstanding balances. While this is a great trick to shop, ensure that all outstanding bills are paid on time to avoid late fees or any other interest penalties.
While using credit cards for shopping, keep in mind the following points as part of a good financial hygiene routine.
- Study your credit card statement thoroughly to ensure there are no suspicious charges. As you spend across different locations and websites, it is important to ensure all charges are your purchases. In case there is any suspicious activity, report it to your bank immediately.
- If you are unable to pay the entire amount, pay the minimum outstanding and clear out the bill as and when there is an inflow of cash. Paying your minimum amount due, to ensure your credit score remains unaffected.
- Keep an eye on your credit limit and spend accordingly. Spending up to 70% of the credit limit is a good practice as it helps keep a buffer for emergencies.
- Although credit cards offer a cash withdrawal facility, do not subscribe to this payment method unless it is an absolute emergency. Cash withdrawal against credit cards incurs huge interest, which can be counterproductive.
- Avoid spending across all cards if you have more than two credit cards. While it gives you the freedom to purchase, remember that all will have a closer credit cycle, and you might end up paying to carry the debt to be paid around the same time.
RBL Bank Credit Cards for shopping
RBL Bank offers a range of Credit Cards, each with its own features and perks. Cards such as ShopRite Credit Card offers 20 Reward Points for every Rs.100 when you use your card for grocery shopping. Similarly, Platinum Maxima Plus Card from RBL Bank is a great rewards card. The card offers 10 Reward Points for every Rs.100 when used for dining, entertainment, utility bill payments, and international purchases.
RBL Bank Credit Cards offer up to 30% off across various categories, including Grocery, Shopping, Travel, Food, Entertainment, Health, and Wellness. These purchases also add reward points to your card that can be redeemed later. To know more, visit RBL Bank Credit Card Offers.