29 DECEMBER, 2021

The holiday season is here and is the perfect time to shop around amazing Christmas gifts for your family and friends. It is also the ideal time of year to rack up some credit card debt. It seems that people forget how much more fun it is to swipe your card than pay with cash, especially when you are already spending so much on gifts! Grab the best credit card in India to get ahead with Christmas shopping and beat the last-minute stress to fetch exciting deals.

If you happen to be one of those who will buy your friends and family cool presents with a balance on your credit but are wondering which is better - cash or credit card, this post is for you.

There are many reasons to use your credit card for shopping this Christmas. Perhaps the most important reason is that a credit card can help you stay within your budget. When you use a credit card, you can track your spending more easily, and you won't have to worry about carrying large amounts of cash around with you.

Another reason to use your credit card is that they are easier to carry around. Many credit cards come with rewards programs that offer cash back or points for each penny you spend. This can be a great way to save money on your holiday shopping.

Finally, using a credit card can help you protect yourself from fraud, and there is no fear of theft. Here are some of the benefits of using your credit card for Christmas spending:

1. Easier to carry around - A credit card is one of the easiest and convenient payment modes to carry in your pocket or while paying online. Some people prefer carrying a card compared to cash because you don't need to stop by an ATM to withdraw cash. Besides, you can be free of the constant worry that you will run out of cash while shopping. You are always sure that keeping your credit limit in mind, your credit card can't run out of balance and not disrupt your shopping plans.

2. You can spread the payments - Credit cards offer a great way to spread out your holiday shopping expenses by charging them over several weeks or months without incurring any or a nominal interest over time. This is especially helpful if you don't have the cash on hand to pay for everything upfront. Using a credit card to pay for Christmas shopping is the best way to enjoy the festival with your loved ones despite being cash-strapped.

3. Rewards - Most credit cards come with rewards programs that allow users to earn rewards for each rupee they spend or offer cash backs, redeemable coupons, gift cards, vouchers, and more. The ecosystem works in a way that the higher you spend on your credit card, the higher will be your rewards and points. Such rewards can be further redeemed to make more purchases. This is an excellent way of saving money during the festive season.

4. Credit cards help build credit - Credit cards are not just about spending money; they also help you build a credit history. A healthy credit score is essential for availing of loans, mortgages, and other such products in the future. Use your credit card wisely every month, and make sure to pay your dues on time to improve your credit score.

5. Credit cards offer the best deals on festival shopping - Credit card companies offer some of the best deals during festival seasons. Shopping with a credit card can help you get discounts, cash back, and rewards on your purchases. Make sure to compare the offers of different credit cards before choosing one that suits your needs the best.

6. Credit Cards are free of theft – You’re better secured with a credit card than a cash or debit card for shopping during Christmas or throughout the year. If your credit card is stolen, all you have to do is report the same to your bank or lender, and they’ll do the rest. Your credit card immediately gets blocked and until the issue is resolved. Whereas, if you are carrying cash and that gets stolen, you’re in trouble for losing your hard-earned money.

Using your credit card for Christmas shopping is the best way to surprise your friends and family with thoughtful gifts. Instead of buying gifts at the last moment, you can time your purchases strategically to get the best deals. Apart from getting exciting offers and discounts, use your credit card to help you build a strong credit score. A good credit score can help you in the future when you need to borrow money for a big purchase or want to get a loan.

A credit card can be a great way to save money on your holiday shopping when used responsibly. Make sure to read the terms and conditions of the festive offers before making any purchases.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.