As the festive season is nearing its start, along with the celebrations, the customs, the traditions come the massive sale offers for eager customers willing to shop till they drop.
But wouldn’t you agree that online shopping has just changed the way we buy. And credit card holders are easily the most ardent supporters of this trend.
And why wouldn’t they? The exciting equation of Online Shopping + Credit Cards =Benefits holds true, as obvious by these advantages:
- The convenience of paying later with a credit period of up to 50 days
- Attractive Reward points offered by cards
- Additional discounts offered by e-commerce giants in tie-up with certain cards
So far, so good. But the challenge remains how to make use of these irresistible offers without burning a hole in your pocket? So here are 6 pointers to keep in mind while shopping online with your credit cards and navigating through the sea of festive offers.
1. Read the Terms Carefully
Never just look at the sale offers and ignore the terms and conditions. Consider this:
- Many banks tie-up with e-retailers to get discounts for their card holder and these discounts may be advertised heavily on the shopping websites. But it may so happen that the offer holds true only if you choose the EMI option. It is then upon you to see if the deal is good enough even after considering the interest and processing fee charges that are applicable on an EMI option.
- On many occasions, free shipping is available only if you shop for a minimum amount. So in a scenario in which you goods something without considering the minimum threshold amount, you can end up paying the shipping amount, leaving your purchase with virtually no discount.
- Similarly some offer discounts are applicable only after you shop for a minimum amount.
Ignorance of such terms and conditions can leave you without any beneficial gains.
2. Know What Your Plastic Offers
Here’s a question for you. Suppose shopping site A and B are offering the same discounts for a product, but B has got a tie up with your credit card company and is offering an additional discount for the cardholders.
So which one would you choose to buy from? The obvious answer is B.
Being aware of such schemes is really important to get the best deal. But there’s a catch. You cannot possibly check the offers for your card on every site. In place, keeping a tab on the seasonal offers from your card is far easier. So next time when you get an offer message from your bank, don’t just ignore it.
3. Double-Check if You Have Availed the Discount Before Final Payment
Online festive season come with promo codes or time bound coupon codes. With so many great offers, chances are that you may end up buying multiple items, especially those getting sold off quickly.
While the hurry is understandable, do take time out to add the right promo code for your purchase.
On a side note, do not freak out if you do not see any instant cashback in your account for a cash back offer purchase. Cashbacks of credit cards are usually processed later and will eventually reflect in your account over a period of time, depending on your card, bank and e-retailer.
4. Avoid Overspending on Discounted Products You May Not Need
Festive season sales do not mean you buy something just because you are getting it at a discounted rate. Remember that the more you spend with your card, the higher is the chance of a repayment default on it.
Purchasing too much depletes your credit limit and you may find yourself running short on credit when you actually need to buy something you urgently require.
If you are holding multiple credit cards, each running different festive offers, chances are that splitting your purchases across them would also increase the chances of default on account of the varying dates of payments.
DO READ: 6 Credit Card Vows You Must Take
5. Check for Rewards/Cashback Promptly
Some cards offer cashback while some offer reward points. You should take your pick smartly depending on the value of the offer. Cashback gives a predetermined percentage of discounts (generally 5%) on your buy. The transfer is made either on the date specified by the retailer in collaboration with the bank or when your cashback reaches a minimum limit.
DO READ: How Credit Cards Can Help You Save Money
You can as well enjoy the pre and post festive season sales by making a smart purchase online.