With the festive season underway, markets are buzzing with gives and reductions. There’s a surge in bank card gives as effectively. In such a state of affairs, it’s straightforward to overspend. Whereas bank cards facilitate straightforward transactions, they could lead to overspending if not used responsibly. Due to this fact, checks and balances are required whereas utilizing bank cards, as festive procuring might go away you with a prolonged procuring invoice.
So earlier than you embark in your procuring journey this festive season, paying heed to those factors is crucial.
Know your bank card
It’s essential to know the important particulars of your card. These embody credit score restrict, excellent stability, unbilled utilization, collected reward factors, reward factors incomes ratio and the cardboard cycle. A transparent understanding of those parameters for all of your bank cards helps you make prudent selections about which card to make use of, when, and the way a lot. Knowledgeable decisions will hold your funds in stability.
Begin at first of your cycle
Should you begin your festive procuring at the beginning of your billing cycle, you get 30-40 days to settle your dues. That is good for you. After a festive season binge, you might want a while to repay your dues. Due to this fact, the longer the interest-free interval, the higher.
Avail further reductions by means of particular playing cards
In tie-ups with varied lenders, completely different manufacturers supply further reductions over and above the generally obtainable reductions through the festive season. Should you personal a number of bank cards, make sure you use essentially the most appropriate one whereas procuring to avoid wasting further bucks.
Put reward factors to utilization
Holding observe of the reward factors collected in your varied bank cards is extremely advisable. The festive season is a chance to exhaust your reward factors to get further advantages, thus lowering your credit score. Chances are you’ll get a cashback rather than these factors, or you’ll be able to utilise them to avail of the assorted gives by making a partial fee.
Chances are you’ll think about availing no-cost EMIs
Many bank cards provide you with a selected buy restrict that may be transformed into no-cost EMIs. In contrast to a conventional EMI, whereby clients additionally have to pay curiosity, a no-cost EMI choice facilitates patrons to pay solely the product worth in equal installments. Should you personal any such bank cards with bundled no-cost EMIs, they are often of nice use this festive season.
Use bank cards that supply most reward factors
Reward factors in your purchases are one of many engaging options of bank cards. It’s advisable to make use of bank cards that supply essentially the most reward factors. In the course of the festive season, varied large ticket-size purchases may fetch you extra reward factors for later utilization.
Whereas utilising bank cards through the festive season, keep away from going overboard and exhausting the higher credit score restrict threshold. Utilizing a mixture of playing cards can assist. Whereas doing so, it’s endorsed to not transcend 30 per cent of the credit score restrict and to pay again the dues instantly to keep away from curiosity fees. Greater utilisation of the spending restrict and an unpaid card stability will harm your credit score rating. Furthermore, you might discover settling the massive quantity in full within the stipulated interval tough. Prudent and wise utilization of bank cards through the festive season will make it easier to hold your creditworthiness wholesome.
The writer is the CEO of BankBazaar.com. The views expressed are that of the writer.