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Indian festive seasons often lead people to spend significantly more, whether for travel, gifting, or other purposes, increasing credit card usage. Credit cards often offer rewards and benefits that, when utilised wisely, can enhance the value of the card.
When used correctly and with timely repayments, perks can range from food and fuel discounts to cashback rewards. However, carrying high-interest debt lasting beyond the festive period can be a sign of overspending.
Before making a large festive purchase, set a comfortable spending limit. Festive sales often lead to quick, impulsive decisions through flash deals, advertisements and promotional offers.
This makes it useful first to identify which promotions or expectations influence your spending, such as limited-time offers, bulk discounts, or gifting traditions, and then find ways to limit them. Here are some useful card controls you can customise to increase your financial discipline:
Category-wise spending reports: Track your credit utilisation for purposes like travel or dining. This can provide larger patterns to compare spending habits against.
Spending limits: Issuers and select cards, like the IDFC First Bank credit card, allow you to set spending limits through their award-winning app, helping you to track transactions, view limits and manage your card effectively. This acts as a crucial guard for long-term credit health.
Push notifications: Card settings often allow real-time alerts to be sent to your phone, helping you visualise each spend’s impact on your credit immediately.
Most importantly, plan beforehand how you intend to repay the amount you spend on credit. You must understand if you can clear bills in the next cycle or whether you need an EMI.
To get the most out of your credit card, make sure you credit card apply at the right time and then enroll in its loyalty or reward programs online. Plan your festive purchases around co-promoted offers from your bank or issuer and the e-commerce platform or retailer. Also, watch out for milestone benefits, loyalty programs, cashback schemes, and discounts that large purchases often attract.
Festive sales often highlight “no-cost EMI” options for electronics, appliances, and gadgets, and they can be helpful when used thoughtfully. However, it’s important to read the fine print: sometimes the discount you forgo, or the processing fees you pay can reduce the overall benefit.
Here are a few practical tips to plan purchases with EMIs if you are considering opting for one:
Only use for high-ticket items.
Keep the amount convenient, but the tenure short; interest can add up.
Ensure the repayment amount and any applicable interest remain affordable within your monthly budget.
To conclude, credit cards, including a RuPay credit card and options such as the IDFC FIRST Bank credit cards, can be a great way for Indian households to plan big purchases during festivals. However, the main issue remains the limited awareness of how to maximise credit card benefits. This includes understanding the rewards and benefits offered and knowing how to make appropriate repayments to maintain a healthy credit score.
Remember, EMIs are only an option to comfortably repay your credit amount when you can actually afford that amount. They don’t make the debt disappear; they only spread it over a longer term. This makes the monthly commitments easier to manage, but depending on the interest structure or processing fees, the overall cost may increase. It’s always better to repay your credit card dues in full whenever possible.
