Shopping for New Year? Why Use your credit card?

27 JANUARY, 2022

A new year brings new aspirations with a clean slate to build smart financial habits and a solid monetary future. Come new year and you’ll find most e-tailers and retail offline stores offering exciting deals and offers to entice customers from all walks of life. You’d find fantastic discounts, cashback, and no-cost EMI offers for select credit card customers too.

All this is too exciting if you’ve been waiting for the festive season to kick in to finally buy your dream gadget or an expensive purchase for your home. Using your credit card for those awaited transactions during the new year or any other festive time is a beneficial proposition in many ways. Apart from the deals and offers, you also get to avail of a credit-free period to make expensive purchases and pay for them later without any extra fees.

However, making smart and responsible use of credit cards is highly called for to ensure you’re not going overboard with the spending. Keep scouring through your credit card statement periodically to know where you stand credit-wise.

Top 6 Reasons to use your Credit Card for New Year Shopping

1. Credit Card is Convenient

The biggest crowd-puller for using a credit card is the convenience it brings to the table. There’s no need to carry around cash in your wallet while shopping offline and being constantly worried about its safety. Any purchase, big and small, can be conveniently done with a credit card; just swipe the card and you’re sorted. There is no hassle of haggling with the shop owners as being a credit card customer, most e-tailers offer amazing deals and exclusive offers for their customers and make the most of their festive shopping.

2. Credit Card is Safe & Secure

Unlike cash, a credit card is convenient and hassle-free to carry around in a wallet without being bothered about safeguarding it every moment. Just slip your credit card inside the wallet and you’re done. In the most unlikely event of a credit card theft or loss, you can simply connect with your bank or lender and get it blocked right away. The bank will immediately block and cancel your credit card to prevent any unauthorised use and save you from fraud and liability.

3. Exclusive Deals, Rewards, & Offers

All credit cards have their own reward program which is shared with the borrower. This implies you can earn rewards and bonus points for every purchase made with your credit card. Besides that, during the festive season, there is a surge in the exclusive and limited-period festive offers that are usually unavailable during the year.

It is best to reserve your expensive purchases and time them during the festive season to make the most of them. Whatever you spend on your credit card gets you exciting reward points and cashback offers which you can further avail of to make more purchases. Keep checking your credit card statement regularly to know of the reward points and their redemption status.

4. Credit Card Can be Used on an International Platform

It’s a common sight these days to use credit cards on international online shopping platforms. Right from purchasing a high-end designer garment, to booking an international flight ticket, and more; using a credit card has made it easier to access the products available on such international shopping platforms. Most international shopping websites have limited payment options available for overseas customers and credit card is always on that list. This makes it easier for everyone to buy anything from across the border right from the comfort of their home using a credit card.

5. Credit Cards Help Build Credit Score While Shopping

While you’re buying that refrigerator or air-conditioner for your home during the festive season, you’re also building a credit history simultaneously. On each purchase made using your credit card, you’re silently inching towards building up a good credit score. One of the best ways to keep shopping and improving your credit score at the same time is by always making your credit card repayments on time.

Timely credit card repayments ensure you have a flawless credit repayment history. This improves your credit score significantly and boosts your chances of availing of a personal or home loan in the future at lower interest rates. Always make sure you pay all your credit card dues on time and in full and never default on your credit repayments.

Shunning the popular misconceptions, a credit card is something to be embraced and not feared. The key to having a smart and responsible use of credit cards during new year shopping is to buy only what is required, stick to your budget, and search for the best credit card deals and offers before making a purchase. The above credit card benefits increase your convenience and let you enjoy the numerous perks and offers.