look news india
The glow of the festive season is spread all around and from markets to online shopping portals, there is a flood of bumper discounts and offers to woo customers. This festive season, if you are planning to buy new clothes, electronics, smartphones, home appliances or home decor items, then cashback credit cards can prove to be a boon for you to manage your expenses. In today’s digital and smart shopping era, if you use the right cashback credit card instead of paying with ordinary debit card or cash, you can save a lot on every transaction. However, amidst these attractive offers, it is very important to know which card will be most beneficial for you and what things should be kept in mind while using it so that the festive enthusiasm does not become a financial burden.
Redeeming the reward points available on common credit cards is a complex process, with various conditions and time limits applicable. In contrast, the math on cashback credit cards is extremely straightforward and transparent; Whenever you make purchases online or offline with these cards, a certain percentage of the total amount spent is returned directly to your credit card account as cashback or adjusted in your next bill. For example, if a card is offering up to 5% cashback on online shopping or utility bill payments, there are direct savings on every purchase you make. It is because of this easy and obvious benefit that today’s discerning youth and families are giving more preference to cashback credit cards than traditional credit cards.
During Diwali, Dhanteras and festive season, large scale shopping is done in every household, due to which it is common to spoil the budget. In such a situation, if you use a branded cashback credit card while shopping on Flipkart, Amazon, Myntra or other major e-commerce platforms, you get the double benefit of instant discount as well as statement cashback. Additionally, many banks provide additional cashback offers on grocery, dining, fuel and flight bookings under special tie-ups during the festive season. This savings makes a huge contribution to gradually reducing your bill at the end of the month. However, to take full advantage of these benefits, it is important that you spend within your financial capacity and do not fall into debt by buying more than you need just because of offers.
In the festive enthusiasm, customers often buy the card after seeing the attractive advertisements of the bank, but forget to read its fine terms, which may lead to losses later. Before applying for any cashback credit card, get complete information about its annual fee i.e. annual charge, joining fee and GST applicable on it. Many cards have a maximum capping on monthly cashback, meaning you cannot get more than a certain amount of cashback in a month. Apart from this, the most important thing is to always pay the credit card bill on time i.e. before the due date, because if you make only the minimum due payment, the huge interest and late fees charged by the bank will nullify all your cashback benefits in a moment.