Diwali 2025: Is It Okay To Pay For Big Buys With Credit Card? Things To Remember
Credit cards are convenient, but the interest rates are exorbitant if the balances are not paid within the due date.
Diwali, the festival of lights, is just a few weeks away. The festive season brings with it the impulse to shop, whether for home furnishings, gifts or gadgets. For some people, credit cards seem to be the simple way out for funding high-end purchases. But is using your card for big-ticket spending a good idea? Here are a few things to keep in mind before you make that choice.
Interest Rates, Payment Timelines
Credit cards are convenient, but the interest rates are exorbitant if the balances are not paid within the due date.
A credit card billing cycle usually spans 28 to 31 days, with the statement date reflecting all transactions made during that period. To steer clear of late fees and penalties, cardholders must pay at least the minimum amount due by the payment deadline and ensure timely repayments.
Rewards, Cashback, Offers
Another benefit of paying with a credit card is rewards, cashback and discounts. Certain cards provide more cashback or reward points on electronics, home appliances and lifestyle items. Determine if benefits would be greater than possible interest charges, and don't overspend for rewards.
Credit Limit
Your limit will dictate how much you can spend. Although a greater limit is appealing when shopping for an occasion like Diwali, it's important that you should not overextend your finances. Overspending may create debt circles and negatively impact your credit score, which may have lasting effects on your ability to borrow.
EMI Options
Some card-issuing banks offer converting large transactions into convenient monthly instalments. This will allow you to afford big transactions without it disrupting your current cash flow. Be sure to read the fine print too, such as processing costs, prepayment fees and penalties for late payments.
Steer Clear Of Impulse Buying
Festive sales and lucrative Diwali promotions can trigger impulsive purchases. Before using your credit card, make a list of essential items and set a budget. Using a card for planned spending is far safer than splurging on unnecessary items, even if the offers seem attractive.
Overall, using a credit card to make big Diwali purchases can be rewarding and convenient if used judiciously. Ensure that you budget your expenses, know the interest rates, use rewards tactically and do not overspend. In so doing, you will have a great Diwali without the financial hangover after the festival ends
