Do Credit Card Offers Actually Help You Save Money?
Credit Card Offers: Most financial institutions also have hidden fees that banks and card issuers may not communicate clearly. These include late payment fees, cash advance fees and overlimit fees.
Banks and credit card companies have long lured customers with cashback rewards, no-cost EMIs, instant discounts and many other lucrative deals. These offers often seem like a smart financial choice, especially during festive sales. Banks and credit card issuers even roll out customised benefits to meet the specific needs of customers.
However, do these offers genuinely help borrowers save money? In reality, these offers and discounts could be just clever marketing tricks that mask hidden costs. It’s important for all borrowers to evaluate overall credit card costs and personal loan repayment amounts instead of getting lured by rewards or cashback offers. The additional fees and charges may increase the debt burden for many borrowers.
Bank And Card Offers: Key Factors To Evaluate To Save More
In some cases, banks may advertise that if you make a Rs 10,000 purchase using their credit card, you'll get 10% off. But there are often certain charges hidden in fine print, such as minimum spend requirements, which many cardholders generally ignore. For instance, the 10% discount might only apply if you spend Rs 15,000. These discounts are also capped at a certain amount in many cases as well.
Another tactic that is very common among banks and credit card companies is capping the cashback amount. While the offer might promise 10 percent off cashback on purchases up to Rs 30,000, the actual maximum benefit given would be Rs 1,500, regardless of how much you spend.
Additionally, in some cases, cashbacks may not reflect instantly and may take up to 60 to 90 days. Most financial institutions also have hidden fees that banks and card issuers may not communicate clearly. These include late payment fees, cash advance fees and overlimit fees. Some may also charge processing or platform fees.
If you opt for an EMI plan and decide to pay it off early, you might also face foreclosure charges. This means you'll have to pay a penalty for closing the loan before the agreed tenure. Even if you are availing a bank card discount, you need to watch for selective eligibility conditions. Often, the offer is valid only on premium cards like Visa Signature and all customers may not get the benefit.
It is important for all borrowers to evaluate overall costs, hidden fees and additional charges amid the promises of discounts and rewards. Unrestricted credit card spending and multiple loans may lead to a debt trap. You may also end up paying more than the amount you actually save.
To conclude, while these offers can help you save money, they only do so if you read all the terms and conditions carefully and make an informed decision. Falling for lucrative offers without understanding the fine print can lead to overspending while increasing the total repayment amount.
