Tips to Follow When Using Your Credit Card During Festival Season


Having a credit card is very vital to making online and offline payments for purchases. You can use a credit card to buy something when you do not have enough money in your account or cash in your pocket. Most credit cards offer you up to 45–50 days to pay the due amount without any interest. You can easily pay your bills on time using any of these options.

When the festive season arrives, it is time to give your loved ones all they desire. If you are short on money, you can make an online credit card payment for anything you want. But it is very easy to spend more than you can afford during festivals, and then you will end up in debt. Hence, you must use your credit card carefully.

Read on to learn about some great tips that will help you use your credit card best during the festival season.

Tips for using a credit card during the festive season

There are so many things to take care of during the festive times that you might need money urgently. Hence, you will prefer to use online credit card payment to pay for the goods or services you need. While there is no harm, it is better to follow the tips below to avoid a circular debt.

  • Look for Deals: When the festive season is around, many vendors offer great deals and discounts on online credit card payment. This can include instant discounts or cashbacks. So, look around and find the vendor who offers you the best deals. This way, you will save a lot of money on your purchase and get up to 45 to 50 days to repay the money. 
  • Opt for EMIs: Many vendors offer to let you pay for your purchases through EMIs during the festive season. So, when you opt for online credit card payment for your purchase, make sure to opt for EMIs. Many platforms also offer zero-interest EMIs, which means you can buy your favorite products and have anywhere from 3 to 36 months to repay the money. 
  • Decide a Limit: It is easy for anyone to build up credit card debt during the holiday season. Hence, it would help if you were very careful when using a credit card during festivals. The best way is to define a fixed budget for the season and make sure you stick to it. Otherwise, you will be forced to repay a high-interest credit card debt. 
  • Pay the Entire Bill: – As stated above, many credit cards offer you between 45 and 50 days to repay the money. If you pay the entire bill within this period, you do not need to pay any interest. Else, you will have to bear a very high interest cost on your purchase. So, always try to pay your credit card bill on time. 
  • Maximize Reward Points: If you have multiple credit cards, you can make the most of the reward points. Different credit card issuers offer more reward points on some purchases. So, if you plan carefully and use the right credit card for the right purchase, you can accrue many reward points to redeem on your future purchases. 
  • Use Reward Points: Most credit card companies run their own reward programs. Herein, you get reward points for various purchases you make with the credit cards. These reward points continue to accumulate over time. So, you can redeem these points to buy great stuff from the catalog of the credit card company. However, most reward points have a two-year expiration date, so make sure you use them within that time frame. 
  • Make a Careful Decision: It is vital that, when you make an online credit card payment for a purchase, you do not buy things you do not need. Credit cards have high interest rates, and if you fail to pay your bills on time, you end up with credit card debt. So, make sure you only buy things you truly need, rather than just because your credit card limit allows it. 
  • Do Not Use the Entire Limit: Your credit card limit directly impacts your credit score. So, be careful not to overspend and use the entire credit card limit.At any given time, 30% of your credit limit must be free. This rule applies to all your credit cards, and you must keep your expenses under control during this period. 
  • Use Your Debit Card: – Many online platforms also offer EMIs on debit cards. But to get this facility, you must have a high credit score and a good credit history. If you are eligible for this benefit, make sure to use it. This will control your credit card debt and ensure you do not spend more than you can afford. Moreover, if you have a balance in your account, you will be better off using your debit card for festive shopping. Do not use a credit card just because you have one.

Online credit card payment can be a wise decision during the festive season. But you must follow the tips shared above to better manage your expenses during this time. You must know your finances better and make decisions based on your real financial position. To better understand your finances, you must visit Piramal Finance. They have many blogs and articles to help you learn about good credit card habits. Piramal Finance also offers great deals on personal loans, which you can use for your festival spending. High-value loans, low-interest rates, and long repayment periods make them a good choice for your festive needs.