The festive season has already hit Indians once again and the market is teeming with offers and discounts across all sectors of the economy. One very important aspect of shopping during festivals is money to pay for. With a host of personal loans and credit card offers making the rounds during festive periods, customers have a lot of paying options to choose from. Banks and other lending entities run special festive offers on credit card spends during such times. However, there are a few facts about these offers that if kept in mind will help you gain maximum out of your credit cards without being tricked into overspending.
- Check your CIBIL report to see its updated
Checking regularly your CIBIL score and report is the best way to keep a track of your credit history. This makes it easy for you to plan your credit and know beforehand your points of improvement. Also, if you apply for credit without checking on your score and in case you get turned down by the lender, then it has a negative impact on the credit report. However, if you check your score before applying, you can improve it if it is poor before applying with any lending entity.
- Credit cards have fees associated with them
It is good practice to find out everything about the related fees and charges for a credit card before availing one. Charges pertaining to credit cards include annual fees, joining charges, supplementary card charges etc. Late payment charges and charges for flexible payment via EMI are other fees that may be applicable to certain credit cards.
- Credit cards let you withdraw cash but that’s expensive
Most credit cards offer you the flexibility to withdraw cash from ATMs. This is true for both domestic and overseas withdrawals. However, taking out cash via credit cards is an expensive transaction and may attract substantial fees and charges. Customers should take utmost care to avoid using their credit card to avail cash unless absolutely unavoidable.
- Swiping your credit card overseas may be expensive
Many credit cards in the Indian market today offer both domestic as well as international applicability. Howevers, cards issued in India may cost you fees when swiped abroad. This is because of two factors, one is the conversion rate that is used to convert foreign currency to Indian Rupee and second is the foreign currency transaction fee that is applicable in cases of these foreign transactions made via your credit card. This fee is generally equivalent to 3.5% of the converted Indian currency amount.
- Credit card reward points are a good bet
Credit cards offer various unique and popular features that can work in your favor. One such feature is the credit card reward point scheme that most credit card providers offer. These reward points are redeemable across a host of online and offline platforms. These can be redeemed to obtain shopping vouchers, gift items, air miles, coupon codes etc. However, in order to make the most of your reward points, it is imperative to know their validity. This will ensure that you do not miss out on the redemption scheme and are able to redeem your points before they lapse or expire. Also, big purchases during the festive season, like those of electronics and furniture, add huge number of reward points that can be redeemed to avail a host of products and services.
- Late payments of credit card bills is to be avoided
Late payments are one of the foremost reasons of customers getting entangled in a vicious circle of credit card debt. Late payments have dual repercussions of one, piled up payments to be made and two, late payment fee added to the original bill amount. This makes it extremely difficult for credit card users to balance in line with their regular monthly budget. Customers who once get caught in this circle of pending credit card payments make huge payments since late payment fee is charged as a percentage of the pending bill and as such accumulates into heft interest amounts.
With the above points in mind, it will no doubt, be easier and more rewarding for you to experience the festivities this Diwali season. Credit cards are a great financial tool to make wise use of and make the most of your purchases. So, happy shopping to you!