5 tips to follow when using your credit card during festival season

3 MinsNov 10, 2020

Many of us put aside shopping during the whole year but go overboard during the festival season. While it is an auspicious time to buy new things, it is also a good time to bring out your shopping lists due to the mouth-watering offers and deals that are available. But before you go trigger happy with your credit card and swipe left, right, centre and online, remember to do it prudently. Here are some tips to follow when using your credit card this festival season:

credit card

Typically, a credit score of 750 and above is desirable. Higher the score, the better it reflects on your creditworthiness, as a borrower or loan applicant. 

Let us see some of the factors that could impact your credit score:

1. Use your credit card points: Most cards have loyalty programmes where you earn reward points for every rupee spent. Use these points to get vouchers on various products and services. These vouchers can be on anything from airline tickets to movie tickets and clothes, accessories and electronic goods, etc. You can redeem your reward points for cash or kind offers.

2. Don’t use your entire credit card limit: Ideally, you should not spend over 30% of your credit card limit. If you have more than one credit card, you can spread your purchases over them and ensure that spends don’t cross 30% on each. If you frequently use your entire available credit limit, it may bring down your credit score. 

3. Pay off your credit card bills on time: Ensure that you pay off your credit card bills in full. If you don’t pay off your bills on time, you will end up paying interest ranging from 1.5%-3.5% a month. Besides, the negative impact on your credit score on account of non-payment of dues may reflect for a considerable time in your credit history. This may make it tougher for you to borrow in future.

[Also read: How To Apply For A Credit Card Online And Enjoy Best Deals]

4. Convert large bills to EMIs: If you have made a big-ticket purchase and can’t afford to pay off the whole bill on time, it is advisable to convert them into EMIs (equated money instalments). This will reduce from interest rate from 35%-50% per annum to between 12%-18% per annum, reducing your interest payment substantially.

5. Look out for promotional offers: During the festive season, mot credit card companies have promotional offers and deals. These could be cashback offers, gifts or discounts for spends over a certain amount, etc. Keep track of the messages alerts you receive from your credit card company to know deals on the items of your choice. When you do the use your credit card, this can work out to be a significant saving for you. 

Axis Bank has a range of credit cards that come with benefits tailored to meet your preferences. For instance, for frequent flyers, there is the Axis Bank Vistara Credit Card range. For those who prefer online shopping, there is the Flipkart Axis Bank Credit Card

Some Axis Bank Credit Cards come with benefits that accrue on achieving pre-defined spending milestones. Thus, the more you spend, the more you earn. These range from a waiver of annual fees to enhanced Edge Reward Points to upgrading of your credit card. 

Disclaimer: This article has been authored by The Source, a Mumbai-based content creation, and curation firm. Axis Bank does not influence the views of the author in any way. Axis Bank and The Source shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.