Credit cards have raised infinite possibilities for shoppers by earning them massive rewards, cashback and discounts on their purchases besides converting large dues into easy EMIs and enabling loans too. But using them at the right time for the right purpose will benefit you immensely. Unlike when you raise your credit card bills significantly by using the same irresponsibly, causing payment defaults and a fall in the credit score. And we know how important it is to have a good credit score for future credit approvals. To avoid such unwanted hassles, let’s time your credit card purchases perfectly by following the tips advised here. Let’s read on for those tips.
The Best Time for Using Credit Cards
Credit cards help you save more when there’s a flurry of rewards, cashback and discounts on your purchases. Like when various e-commerce players come with eye-catching deals for credit cardholders. But yes, you need to do all that within your limit too to avoid falling into a debt trap. Some cards allow waiver or reversal of annual fees on spending a specific sum during a specified period. These are times when using credit cards makes a lot of sense for shoppers. Let’s discuss all these.
Make the Most of Seasonal Discounts & Cashback with Credit Cards
E-commerce players, seasonally, come with great discounts, cashback and rewards for those using credit cards to purchase on their platforms. Particularly on occasions such as Independence Day, Republic Day, or the Big Billion Sale in Autumn. So many things from mobile phones to refrigerators can be bought at around 30-50% less than the market price. However, do look at the absolute price (after discounts & cashback) before adding things to the cart. Because that’s what you need to pay on the credit card bill due date to avoid late payment charges. Don’t take comfort from paying the minimum due amount that accounts for about 5% of the outstanding balance. Because doing so will lead to enhanced debt and the mental strain that follows.
When There’s an Offer of Fee Reversal or Waiver
Various credit cards come with an offer of fee reversal or waiver upon spending a specific amount within 30-60 days of the setup date. Some cards allow you to spend any amount to get such an offer. The fees can be anywhere from INR 500-5,000, depending on the credit card you apply for. So that recurring expenditure annually will not be your liability anymore. It’s like a win-win deal for you!
When Bonus Rewards are in Sight
Credit cards come with an accelerated rewards structure by offering customers bonus points for the purchases they make in a year. You can redeem these rewards for gifts, travel tickets and much more. See if you can spend the required amount, without putting yourself in much debt, on a credit card to get these rewards.
Dine Outside More with Credit Cards That Offer Tall Discounts
The experience of dining outside becomes even glorious when you get tall discounts on your food orders. Various credit cards offer the same to customers. Maybe the offer remains available for dining at select restaurants, but worth using your cards for such an experience. The foodie in you can’t be more pleased!
Use Credit Cards for Fuel Surcharge Waiver & Travel Benefits
Fuel prices have gone up substantially since the Russia-Ukraine war. Petrol prices have gone past INR 100 per litre, whereas diesel prices are almost touching INR 100 per litre. According to government sources, prices are set to go up further soon, causing concerns for someone sitting on a tight budget. To your relief, some fuel credit cards allow fuel surcharge waiver on refill at select or all petrol pumps for transactions anywhere between INR 500-3,000.
A few credit cards allow you the freedom from paying 1% transaction charges on railway ticket bookings. Credit cards also offer discounts, cashback and rewards on booking flights. Every penny saved in today’s inflation is like GOLD!