Festive Shopping Made Easy: How To Pick The Right Credit Card

Most credit cards offer reward points on a variety of spends. However, to make shopping more attractive during the festive season, they may offer accelerated or increased reward points

Credit cards typically come with a joining and/or annual fee which is a charge to own and operate the credit card account and its services.

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The festive season is all set to begin, bringing with it a host of attractive offers. Festivals like Diwali, Dussera, and Christmas are synonymous with brands launching festive deals and discounts to attract shoppers. In fact, many people wait for the festive season to shop for items like electronics, apparel, automobiles, etc., which would otherwise be more expensive. Shopping during this time can save you money if done right. One of the best tools to achieve this is a credit card. Having the right credit card can help you save big on festive shopping. But how do you choose the one that’s right for you? Here are some aspects to consider when selecting a credit card for your festive shopping needs.

Festive offers & discounts

The festive season is a time when credit card companies tie up with brands to offer exclusive discounts, cashback, and reward points on purchases. These offers are available across categories like electronics, groceries, fashion, and travel. It is smart to choose a credit card that ties up with brands or online shopping platforms from whom you’d like to purchase. For instance, some banks or credit card issuers offer cashback or discounts on purchases from select e-commerce websites which can help you save significantly on your festive shopping bill. Many offline stores also have similar tie-ups on items like home appliances, jewellery, furnishings, and more. 

Rewards on festive shopping

Most credit cards offer reward points on a variety of spends. However, to make shopping more attractive during the festive season, they may offer accelerated or increased reward points. For instance, some banks may offer 2x or 3x reward points on categories like dining, lifestyle, travel, and electronics during the festive period. The accumulated reward points can help offset future purchases and help you save. If you're planning to get a credit card for festive shopping, check its rewards programme and if you can redeem the points for offers or vouchers that apply to your specific shopping needs. 

No-Cost EMI

Given the attractive offers available, many people delay big-ticket purchases like appliances, gold, furniture, etc., for the festive season. To make these purchases even more affordable, many credit cards offer the no-cost EMI or zero-interest feature available in partnership with specific brands or retailers. This essentially converts a large expense into smaller monthly instalments without interest charges, allowing you to purchase expensive items without straining your budget. 

Credit limit & spend-based offers

It is tempting to splurge during the festive season, but if you’re not careful, it can turn into a debt trap. If you exceed the available limit of your credit card, you will be subject to over-limit charges which can impact your credit score. When choosing a card, check if the credit limit aligns with your spending habits. Moreover, during the festive season, some credit cards also offer spend-based rewards, such as gift vouchers, exclusive deals, or complimentary tickets, when you spend beyond a certain limit. This value addition makes shopping more rewarding.

Fees vs. benefits

Credit cards typically come with a joining and/or annual fee which is a charge to own and operate the credit card account and its services. This fee varies for different cards, with premium credit cards levying a higher fee. When choosing a credit card, especially one with festive benefits, it is prudent to check if the fee being charged justifies the benefits being offered. In many cases, the annual fee is waived if the cardholder spends up to a certain amount annually. So, if you plan to shop extensively with your shopping card his festive season, check its fee versus the benefits it offers to decide if it is right for you. 

Choosing the right credit card can make festive shopping a lot more rewarding. When choosing a card, check the benefits it offers, its fees, as well as its credit limit. Evaluate these against your anticipated spending needs to decide if the card is right for you. It is also important to use your card responsibly. This means staying within your credit limit, maintaining a healthy credit utilisation ratio, and paying your bill on time. Planned spending with your credit card can help you save on festive spends, making the celebrations even more joyous. 

The author is the manager, Communications at BankBazaar. This article has been published as part of a special arrangement with BankBazaar.