Diwali Shopping: How To Make The Most Of Your Credit Card Without Overspending

You must know your credit limit and be careful about EMIs to make good use of your credit card.

Diwali is an ideal time to purchase products, with retailers and banks rolling out attractive discounts and cashback offers. (Source: PTI)

With the festive season in full swing, and Diwali only a few weeks away, there are likely to be several deals in both online and physical stores that will entice you to swipe your credit card.

Though credit cards offer convenience, overspending without a plan can quickly turn into a debt burden that can strain your finances.

Make this Diwali truly cheerful without upsetting your long-term finances. Here’s a guide to help you use your credit card smartly, keep your spending in check, and steer clear of debt pitfalls this festive season.

Know Your Credit Card Limit

A key aspect of smart spending is being fully aware of the limit on your credit card. Each card has a predetermined ceiling for how much you can spend, and going beyond it, or even nearing that threshold, can negatively affect your financial stability.

The credit utilisation ratio shows how much of the available credit you are using. If you spend more than 30–40% of your total limit, it can lower your credit score over time.

Also Read: Diwali 2025: Is It Okay To Pay For Big Buys With Credit Card? Things To Remember

Focus On Essentials Before Indulgences

The Diwali shopping season can easily tempt you into buying more than necessary. Be careful, splurging on non-essential items can quickly lead to unwanted debt.

It is important to prepare a list and spend on essentials first, such as clothing, gifts, or festive decorations. You can check prices across multiple platforms; not every “discount” is a genuine saving.

Be Selective With Festive Deals

During the festive period, banks and brands show several offers, ranging from cashback and EMI plans to bonus rewards and instant discounts. While these may seem appealing, using them thoughtfully is what truly benefits you.

Read the fine print for conditions like processing charges, minimum purchase requirements, or cashback limits. Opt for deals that match your spending needs.

Distribute Spending Between Cards

If you own multiple credit cards, dividing your purchases among them can be a smart way to manage credit. This approach helps maintain a lower utilisation rate on each card while offering greater spending flexibility.

Be Cautious With EMI Offers

Retailers often promote EMI options during Diwali, especially for expensive purchases. Though instalments may seem easier on your wallet, they often create lasting financial commitments that can limit your financial freedom.

Taking on several EMIs at once increases your monthly outgoing, leaving less room for other expenses.

Indulging in Diwali purchases and adorning your home in festive finery is fine as long as it doesn't compromise your financial health. With sensible budgeting, you can protect your finances while still embracing the festive spirit.

Also Read: Diwali 2025: Is It Okay To Pay For Big Buys With Credit Card? Things To Remember

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