Shopping via Credit Card: The festive season has started and with it the glut of sale and discount offers are all around us. Along with great offers, there are also easy financing schemes that help make buying big things easy. So, you not only have the option of buying the things you want to buy, but you also have a credit card, personal loan, buy now pay later loans etc. There are options like . Today we are telling you what things you should keep in mind when shopping with a credit card.
keep budget in mind
Set a festive shopping budget. When you make purchases with your credit card, it is important that you can easily clear the balance. So keep a budget in which you are comfortable and keep your expenses limited in that. Your personal financing will be better than this once the festive season is over.
choose cards wisely
Each credit card has its own benefits, rewards and incentives. Once you’ve decided what to buy, know which credit card will give you the best chance to buy. This will help you use the card that is best for your big purchases. If you don’t have such a card, consider getting one.
Expenditure limit can be increased
If your credit card spending limit is small and likely to run out during festive shopping, check with your card provider. If you have already exceeded your limit and your repayment record is good, then your card provider should not have any trouble in increasing your limit.
short term emi best
Opt for EMI for as short term as possible. Keep in mind that credit card interest rates are high. The more you have outstanding on your card, the more interest you will pay.
avoid cash use
Most credit cards will allow you to withdraw cash from an ATM. But there is no interest free period for cash withdrawal from the credit card. Interest will start charging from the first day of your withdrawal. Therefore, exercise extreme caution with this option. Buy online only where your transactions are encouraged in various ways.
Minimum amount due
You have the option to pay a minimum amount due every month. This is usually 5% of your dues. But you have to avoid this and try to clear your entire dues every month.
keep checking your credit score
Keep track of credit score regularly. You can check your score online for free monthly. Especially if you tell big expenses from credit cards, then definitely do so because increased expenses have the potential to reduce your score.
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