A credit card is a financial tool that allows a borrower to borrow money from a lender for purchases or other transactions. A credit card offers the convenience to purchase expensive items, pay for everyday necessities, without having to pay upfront. Instead, it provides 25-30 days’ time for the borrower to repay the debt.
Credit cards are quickly becoming one of the preferred methods of financing in India. The number of active credit cards in India grew by at least 7.39 million thanks to easy availability and integrated features aimed at its users.
Feature-rich credit cards are most commonly used for shopping along with numerous other financial services. Companies offer tailor-made products to entice their customers into making transactions with these. They also help them earn numerous benefits and bonuses with their credit cards.
A cardholder should also follow some methods to ensure they save money on shopping while using the best credit card. Let’s take a look at how.
On purchases –
Credit cards offer more purchasing power to a user as it offers credit irrespective of whether the individual has the same amount of funds available or not. Buyers often prefer to use their credit cards for the following reasons –
- Retail partnership – Credit card companies often tie-up with different retail chains to provide offers and discounts to cardholders. They can help save a significant amount of money on expensive purchases.
Frequent shoppers should go for credit cards that come with such offers. Researching the available options will show which companies have partnerships with the maximum number of retailers.
- Overseas expenses – Credit cards are a convenient method of managing overseas expenses. Lenders package various credit card offers in the form of big discounts on overseas travels, purchases, accommodation, etc. It is a great way of saving money while the cardholder is on foreign soils.
Cards like Bajaj Finserv RBL Bank SuperCard even provide customised features to cater to an individual’s overseas expenses. These versatile cards are also useful for local purchases as it offers loyalty programs like reward points, welcome gift, and milestone bonuses.
- With reward points –
Reward points are one of the most common forms of loyalty programs. These offers provide a certain number of redeemable points to the cardholder against every purchase. These points can be redeemed to avail discount coupons, gift vouchers, etc.
- Welcome rewards – Credit card companies often offer a large number of reward points as a sign-up gift for their customers. Certain financial institutions offer up to 20,000 reward points, which can be redeemed for offers on various purchases, gifts, etc. A cardholder can also accumulate these points to redeem later.
- Reward points for shopping – A cardholder can also accumulate reward points when they use their credit card for shopping. Some of the best credit cards offer up to 2 reward points on every purchase of Rs. 100, both online and offline. Premium credit cards even offer up to 20 reward points for every Rs. 100 spent on dining or certain other luxurious purchases.
- Milestone bonuses – Milestone bonuses are another type of loyalty program specially designed for heavy spenders. It offers a large number of reward points once the cardholder crosses a certain spending threshold. Milestone bonuses are a great way to boost available reward points. Companies like Bajaj Finserv gives up to 20,000 reward points once the cardholder spends more than Rs. 3,00,000 and Rs. 5,00,000 within a year.
Bajaj Finserv also brings you pre-approved offers on credit cards, personal loans, business loans, home loans, and a number of other financial products. These offers not only make the process of availing finances simple but also help in saving your time. You only have to share some essential info to check your pre-approved offer.
However, a cardholder should be aware of the validity period of such credit card offers. Reward points have to be utilised within a given timeframe; otherwise it becomes invalid. A user should redeem their accumulated points within that time frame to maximise the benefit of their accumulated points.
With complimentary privileges –
Some of the best credit cards often come with several courtesy privileges that can help the card owner save a lot of money. These include –
- Complimentary airport lounge access – Credit card companies often offer complimentary airport lounge access, up to 8 times in a year, for their loyal customers. It is a great money-saving feature for frequent travellers.
- Complimentary movie tickets – Lenders also provide complimentary movie tickets to frequent shoppers. These offers can vary from free tickets to discount vouchers, depending on different lenders.
Credit cards offer numerous money saving features for their customers to utilise. Careful planning and proper usage can help a cardholder earn big discounts and privileges and save more when they use their credit card for daily expenses.