Up to 7.5% cashback: 5 ways to save money while shopping in Diwali

If you are saving up to get your favourite gadget or festive wear before Diwali, some planning can help you save money while shopping, especially if you have a credit card. From no-cost EMIs to attractive cashback and rewards, credit cards can provide an array of benefits. But you have to know the right tips and tricks to make the most of it. Here are five best strategies to use credit cards to maximise savings during the festive season.

1) Choose the right credit card for your needs
If you want to save money while spending money, you need to select the right credit card. There are different types of credit cards available in the market —
a) Credit cards that offer benefits on dining, entertainment or other lifestyle-based spending
b) Credit cards that offer attractive offers on shopping, both online and online
c) Travel credit cards that offer frequent flyer miles, complimentary lounger access, discounts on hotel bookings
d) Co-branded credit cards that allow special benefits if you shop at the partnered merchant

You need to choose a card depending on your spending pattern. If you love to shop online, you can go for a credit card that offers attractive cashback or rewards on online shopping platforms. If you drive to work regularly, a fuel cashback credit card could save you money.

"Whether you prioritise travel, dining, or shopping, choosing a card that aligns with your spending patterns can help you get the best rewards and discounts," says Ramakrishnan Gopalan, Vice President and Head Of Products & Solutions For Visa India And South Asia.

Best cashback credit cards 2024
Source: Paisabazaar
All card information is sourced from the card provider’s website as of October 1, 2024.
The list has been compiled considering the best value these cards offer on multiple brands, online platforms and offline stores.

2) Understand different types of credit card rewards: Cashback, reward points, waiver
Credit card rewards come in many forms. Here are the most common ones:

Reward points: You spend on your credit card and you earn reward points. They can be typically redeemed against gift coupons or flight or hotel bookings. Some credit cards may adjust reward points against the card statements.

Cashback: Credit card users get a percentage of the transaction amount back as a statement credit.

Loyalty points: Some credit cards have loyalty programs that reward you with points you can use for discounts, free items, or special offers at partner stores.

Bonus rewards: Certain credit cards offer bonus rewards for spending in specific categories or during promotional events. For example, you could get extra points or cashback for grocery shopping, dining out, or gas purchases during certain timeframes.

Fuel surcharge waiver: A fuel surcharge is an extra fee added to credit card fuel transactions to cover processing costs. Some credit cards offer fuel surcharge waivers, which means you do not have to pay the extra fee if you pay a gas bill using that credit card.

Understand all the benefits your credit card offers. Then, take advantage of available benefits to claim discounts, cashback, and waivers. During your upcoming Diwali shopping, look for deals wherever you shop and you will save on every purchase.

3) Be strategic: Plan your purchase

Strategically plan your major purchases to maximise credit card rewards. Many credit cards offer sign-up bonuses or increased rewards for reaching spending targets in the initial months. Time your big expenses like travel or appliances to coincide with these promotional periods. "If you are considering a new card, look for ones with attractive welcome offers that align with your festive shopping plans," says Animesh Hardia, SVP, Quantitative Research at 1Finance.

"Utilise co-branded credit cards of specific retailers or e-commerce platforms you frequently shop with, as they often provide exclusive discounts and accelerated reward earnings during festive sales," Hardia further adds.

4) Check your existing credit cards for rewards: Use reward points wisely
Almost every card offers reward points every time you use the card to make a payment. The accumulated reward points can, then, be used for paying a part of your next credit card bill buying a gift voucher or availing a discount on travel bookings. Many credit card issuers also allow you to claim merchandise from a specified catalogue. Some credit card issuers allow you to convert the reward points into cash and then claim cashback or get a refund of the same. So, use your reward points wisely.

"Check your existing reward points balance and redeem them for festive purchases or gift cards, effectively reducing your out-of-pocket expenses," says Hardin.

Don't forget about the expiry dates of your reward points or cashback. Some credit card rewards have expiration dates, so they may become invalid if you don't use them within the specified timeline. Check your rewards balance regularly and redeem them before they expire to make the most of your credit card reward points.

Use cashback websites or apps that offer additional discounts when you shop through their platforms, stacking these savings with credit card offers, says Hardia.

5) Hunt for the best offers online: Search on GoPaisa, CouponDunia, or Cashkaro
Instead of shopping directly on e-commerce websites, try using cashback websites like GoPaisa, CouponDunia, or Cashkaro. These sites offer discounts and cashback on your purchases. You just need to sign up on one of these sites, find deals for the e-commerce site you want to shop on and click on it. It will take you to the shopping website, where you can shop as usual. You will get extra cashback for shopping through these third-party platforms. These platforms have special discounts on certain credit cards as well. Be sure to read the terms and conditions before buying anything.