Festival Credit Card Deals: Are Discounts And Cashback Worth It?

Each festive season, India is flooded with credit card offers, promising discounts, cashback and no-cost EMIs. From smartphones to SUVs, everything seems more within reach. These credit card deals can seem appealing, but many deals aren’t as rewarding as they appear.

To stay away from traps, carefully read the fine print for minimum spend requirements, deal expiry dates and additional charges, and concentrate on buying only what you need.

Here’s how you can approach it:

Not every festive discount looks as good as it does. Sellers may raise the original price of the item to make a discount seem bigger, or attach conditions to “cashback” that lower its actual value. Always cross-check the sale price with the normal market value and check the terms of cashback offers.

Credit card promotions usually come with conditions attached, such as high interest rates post-grace period, processing charges for EMIs or minimum spend to qualify for a deal. If you fail to pay your dues in full, even a small amount can balloon into massive interest charges over time.

It’s not difficult to get carried away by the festive excitement. But in the process, do not forget to determine a specific spending limit for upcoming festivals such as Diwali, Dhanteras and Bhai Dooj. Segregate your spending into categories, such as gifts, decor, clothes and sweets. Stay within your means to prevent the post-festive money blues.

Reward points and cashback are only beneficial if they are used. Redeem points for essentials or items you planned to buy anyway, instead of using them as an excuse to overspend.

The festive season is a marketing bonanza. Pause before you swipe your credit card and ask yourself if you absolutely need the product. Will you be sorry next month when the credit card statement reflecting your dues arrives?

Credit cards do offer benefits like instant discounts, cashback, reward points and the convenience of deferred payments. These can make shopping rewarding and guilt-free. But, discipline is necessary, and ignoring the downsides can get one into financial trouble. Enjoy the festivals, but be sensible with spending. Savings come from wise planning, not attractive offers.