As the festive season of Diwali approaches, it’s the perfect time to shop for new clothes, electronic gadgets, and gifts for loved ones. Diwali is synonymous with shopping sprees, but you can be smart about your purchases by using the right credit card. With a variety of benefits like cashback, rewards, and no-cost EMI, a credit card can help you save significantly during this festive season.
Choosing the best credit card based on your shopping needs is essential to maximize savings. Let’s explore how to pick the right card and make the most of the offers available this Diwali, whether you’re shopping online or in stores.
How to Select the Best Credit Card for Diwali Shopping?
Different credit cards cater to different types of expenses. Whether you’re buying electronics, clothing, or groceries, here are some tips to guide you on selecting the best credit card for your Diwali shopping.
1. Identify Your Spending Habits
Choosing the right credit card largely depends on understanding your spending patterns. Here’s how to identify the ideal card for your needs:
- Lifestyle-Based Spending: If you frequently spend on dining, entertainment, or shopping, consider a lifestyle credit card that offers rewards and cashback on such categories.
- Online and Offline Shopping: For those planning big Diwali shopping sprees, cards with cashback on online platforms like Amazon, Flipkart, Myntra, and offline stores can be a boon.
- Frequent Travelers: For travelers, co-branded travel cards provide perks like free airport lounge access and discounts on hotel bookings, making them ideal for those planning post-Diwali trips.
- Fuel Benefits: If you spend a lot on fuel, look for credit cards that offer cashback or surcharge waivers on fuel purchases.
2. Leverage Reward Points and Cashback
Credit cards often provide attractive rewards such as cashback, reward points, and loyalty bonuses. Here’s how you can benefit:
- Reward Points: Earn points for every transaction and redeem them for shopping vouchers, flight bookings, or even to offset your credit card bill.
- Cashback: Some credit cards offer cashback for online and offline purchases. For instance, spending Rs 10,000 on your Diwali shopping with a 5% cashback credit card could get you Rs 500 back.
- Bonus Rewards: Look for cards that offer bonus points during the festive season or on specific categories like groceries, fuel, and electronics.
- Fuel Surcharge Waivers: Many credit cards waive the surcharge when you purchase fuel, helping you save on fuel costs during the busy festive season.
3. Plan Big Purchases to Maximize Benefits
Timing is key to getting the most out of your credit card. Here’s how to plan:
- Sign-Up Bonuses: Many credit cards offer sign-up bonuses when you spend a certain amount within the first few months. If you’re planning a big purchase during Diwali, such as electronics or furniture, take advantage of this and sign up for a new card with a welcome offer.
- Festive Offers: Diwali is a time when banks and credit card companies roll out special offers. Look out for increased cashback or extra reward points on categories like clothing, electronics, and jewelry.
Top Credit Cards for Diwali Shopping in 2024
Here’s a list of the best credit cards for Diwali shopping that offer cashback, rewards, and other benefits.
1. HDFC Bank Millennia Credit Card
- Annual Fee: Rs 1,000
- Benefits:
- 5% cashback on Amazon, Flipkart, Myntra, Swiggy, Zomato, Tata CLiQ, and more.
- 1% cashback on other spends.
- Free domestic airport lounge access on spending Rs 1 lakh per quarter.
2. Cashback SBI Card
- Annual Fee: Rs 999
- Benefits:
- 5% cashback on online purchases.
- 1% cashback on offline purchases.
- 1% fuel surcharge waiver across all petrol pumps.
3. Axis Bank ACE Credit Card
- Annual Fee: Rs 499
- Benefits:
- 5% cashback on bill payments and Google Pay recharges.
- 4% cashback on food delivery platforms like Swiggy, Zomato.
- 1.5% cashback on other purchases.
- Free domestic airport lounge access four times a year after spending Rs 50,000 monthly.
4. Amazon Pay ICICI Credit Card
- Annual Fee: Rs 0
- Benefits:
- 5% cashback for Amazon Prime members.
- 3% cashback for non-Prime members on Amazon.
- 2% cashback on payments through Amazon Pay merchants.
- Free 3-month Amazon Prime membership and Rs 2,000 in card activation benefits.
5. YES Bank Paisabazaar PaisaSave Credit Card
- Annual Fee: Rs 499 (First year free)
- Benefits:
- 3% cashback on online spends.
- 1.5% cashback on other purchases.
- 1% fuel surcharge waiver.
- Cashback points redeemable on the YES Rewards platform.
6. Myntra Kotak Credit Card
- Annual Fee: Rs 500
- Benefits:
- Up to 7.5% discount on Myntra purchases.
- 5% cashback on Swiggy, PVR, Urban Company.
- Free Myntra Insider Membership and vouchers.
- Free airport lounge access after spending Rs 50,000 per quarter.
7. Flipkart Axis Bank Credit Card
- Annual Fee: Rs 500
- Benefits:
- 5% cashback on Flipkart and Cleartrip.
- 4% cashback on Swiggy, Uber, PVR, and Cult.fit.
- Welcome Flipkart voucher worth Rs 500.
- Free domestic airport lounge access after spending Rs 50,000 in the last three months.
Maximizing Savings with Your Credit Card During Diwali
Once you’ve chosen the best credit card for your needs, here are some tips on how to maximize savings:
1. Use Cashback and Reward Sites
Before making any online purchase, consider signing up for cashback websites like GoPaisa, CashKaro, or CouponDunia. These sites offer extra cashback or discounts when you shop through their platform.
2. Redeem Existing Reward Points
Check your existing reward points balance and redeem them for vouchers or discounts before they expire. Many credit cards allow you to redeem points for shopping, which can save you significant amounts during the festive season.
3. Focus on Offers from Partner Merchants
Banks often have partnerships with specific online platforms or brands. These partnerships lead to exclusive discounts and offers. Make sure to check if your credit card has special Diwali offers on platforms like Amazon, Flipkart, or Myntra to maximize savings.
4. Choose No-Cost EMI for Big Purchases
If you’re planning to buy expensive electronics like smartphones or TVs, look for no-cost EMI offers available on your credit card. This helps break down your payments without extra interest.
5. Plan Purchases to Meet Spending Thresholds
Many credit cards offer additional benefits like bonus rewards or free airport lounge access once you hit a certain spending threshold. Plan your major Diwali shopping or travel bookings within the first few months of signing up for the card to avail these benefits.
