How to shop big this Diwali without hurting your credit score

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The Diwali season is when wallets loosen up. From gold jewellery to iPhones and home appliances, big-ticket purchases peak around this time. But while festive offers and easy EMIs make buying tempting, your credit score can take a hit if you don’t handle repayments wisely. Keeping a few smart rules in mind can help you enjoy the shopping season without financial regret.

The EMI trap

Banks and NBFCs aggressively push zero-cost EMI schemes and cashback offers around Diwali. While these look attractive, piling up multiple EMIs can stretch your monthly budget. Missing even one payment reflects badly on your credit history. It’s better to take on only what you can comfortably repay rather than load up your card with every tempting deal.

Don’t max out your credit card

Festive discounts may nudge you toward swiping your credit card everywhere, but using up more than 30–40% of your card’s limit raises your credit utilisation ratio. A consistently high ratio signals credit dependency and lowers your score. If you’re planning big purchases, try splitting payments across cards or mixing in some debit card spends to keep balances healthy.

Keep loan approvals in mind

If you’re eyeing a home or car loan in the coming months, be extra cautious. A low score caused by festive overspending can reduce your chances of getting favourable interest rates. Lenders look for consistent behaviour, so keeping your report clean during festival season works in your favour.

Think long term, not just Diwali

Remember that credit scores build slowly but can fall quickly. A single default can drag your score down by dozens of points, and it takes months of disciplined payments to rebuild. While festive shopping brings instant gratification, financial mistakes made in October can haunt you well into the new year.

FAQs

1. Will buying on EMI hurt my credit score?

No, taking an EMI doesn’t hurt your score if you pay on time. The problem arises when you miss payments or over-borrow.

2. Is it better to use one credit card or multiple cards during Diwali shopping?

It’s wiser to spread purchases across cards. This keeps your credit utilisation on each card lower, which helps your score.

3. Should I avoid using credit cards altogether during the festive season?

Not at all. Credit cards are useful for rewards and offers. Just make sure you repay the bill in full by the due date.