From ACs and fridges to small cars, the GST Council has slashed rates on a wide range of consumer items. With the new rates kicking in from September 22, festive shoppers stand to gain more. But here’s the trick. Before making those Diwali purchases, compare credit card offers carefully. The right card can give you the perfect blend of instant discounts, cashback, and long-term rewards, turning your buys into a double bonanza.
With shopping lists growing longer this festive season, why just spend when you can spend smart?
Credit cards offer reward points, cashbacks, exclusive deals, and make every swipe add value. From gifts to loved ones or treats to yourself, your purchases can earn perks and give you bang for the buck. It is not just buying; it is about making every rupee count.
Festive seasons are when people often make high-value purchases, so features like 0% EMI and instant discounts from e-commerce tie-ups are extremely useful. “Accelerated reward points on shopping and dining also help stretch every rupee spent. Milestone vouchers, grocery cashback, and fuel waivers may look small, but they add up quietly,” says Saurabh Bansal, Founder, Finatwork Investment Advisor, a SEBI RIA (Registered Investment Advisor.
Discounts on Flights, Hotels, and Shopping
During the festive season, most credit cards roll out special deals. “The first thing to check is the instant cash discounts being offered—these vary by card type and minimum spending thresholds. Some premium cards may offer higher discounts or exclusive partner offers,” says Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution. You can find discounts on partner sites, flight tickets, hotel bookings, and so on.
For example, the HSBC Cashback Credit card is offering discounts of up to Rs 40,000 on holiday bookings, while the ICICI Amazon Credit Card is offering 10% off on domestic flight bookings.
Reward Points
Every time you make any purchases with your card, you earn reward points. The number of points you earn depends on how much you spend and the type of purchases. Sometimes specific bonus points are given for dining or travel. Reward points you accumulate can be redeemed for various benefits such as discounts, gift vouchers and so on. Different cards offer different redemption options and points, so it is important to choose the right card so that you can earn the maximum bonus points.
“Many cards provide loyalty or reward points that can later be redeemed for purchases, vouchers, or travel bookings. A smart shopper should compare offers across cards and choose the one that provides the best blend of instant discounts, cashback, and long-term rewards,” says Kapoor.
Cashback on Purchases
Credit card cashbacks are just that. It gives you back a percentage of your spending as a reward. It thus lowers your effective spending by crediting cash to your account or your total bill. For example, the SBI Cashback card gives 5% Cashback on online* spends without any merchant restrictions.
Combining platform discounts with bank offers and cashback gives a multiplier effect on savings. “It’s also smart to use different cards for specific categories, such as groceries, gadgets, or fashion, while keeping an eye on cashback caps. The focus should always remain on planned purchases rather than impulse-driven spending,” says Bansal.
Save Smartly: Prepare, Budget, and Hunt for the Best Deals
Despite the temptation, do not go overboard with the spending.
Make a budget and stick to it. Plan your credit card expenditure based on how much credit card debt you can manage in the future. “Once you have zeroed in on an amount that you can spare for your festival shopping, stick to that budget. For times that you overshoot your budget for whatever reason, have liquid funds at hand. So start saving up well in time so that you do not have to cut corners,” says Adhil Shetty, CEO, BankBazaar.com.
The next important thing that goes hand in hand with saving is planning. Make an exhaustive list of everything you would like to spend on -- clothes, accessories, consumer durables, crackers, furniture, gifts for friends and relatives, and more.
Once you are done with the shopping list, start purchasing only the items mentioned in the list and refrain from impulsive buying. If you stick to your shopping list, the chances of overshooting your shopping budget will be smaller.
“Also, keep your eyes open for all the deals, discounts, and offers on items on your shopping list. This will help you get the best deals, and even small savings add up in the long run,” says Shetty.
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