Tips on what purchases you should make with a credit card

India’s consumer culture has taken a remarkable shift from mainly a cash-based market, to a debit and credit card-based system. Transactions of over Rs.8,000 crore (in March 2020) via credit card variants alone stand to prove the altering demography. The recent e-commerce boom and the convenience offered by credit cards are the primary influencers of such changes.

Financial institutions offering some of the most feature-packed credit cards bundle various customer loyalty packages often along with their products. One can earn handsome rewards, gifts, points, and even complimentary services if they reroute their expenses through some of these best credit cards available in India. 

Every cardholder must, however, understand how he/she can reap the maximum benefits with smart usage of this financial tool. Along with proper monetary management, individuals should also know what purchases they should frequently make using their credit cards.

Tips on best things to purchase using a credit card

Using your credit card wisely can help you save a substantial amount in the long run. Some of the frequent purchases can be made through credit cards to maximise the benefits. Here is a list of purchases that can bring rewards with every transaction.

• Purchase consumer electronics –

Purchasing consumer electronics with a credit card not only allows cardholders to earn reward points, but they can also break down the cost in EMIs for easier repayment. It is a typical feature that alleviates the financial strain of paying a large sum at one go.

Another benefit of making big-ticket purchases using credit cards is that most brands and outlets offer some form of discount or cashback when items are purchased using these cards. It is among the top simple tips that bring out the most of a credit card.

• Lifestyle and consumer item purchases

Lifestyle and consumer item purchases are probably among the most common transactions with credit cards. With e-commerce sites offering huge discounts and cashback on every purchase made using credit cards, the trend has been growing ever since.

Even physical shops partnered with certain financial institutions offer such discounts. Add to that the facility to convert big-ticket purchases into EMIs, and it becomes beneficial for customers to make such transactions. Financial institutions also offer accelerated reward points with online purchases. 

• Pay for meals and entertainment –

Credit cards are a convenient option to pay at restaurants and bars or to purchase movie tickets. Many financial institutions offer complimentary movie tickets with purchases, which can help save on expenses incurred at multiplexes. 

With their host of security features, attractive bonuses, discounts and rewards, credit cards can be the perfect financial tool to utilise on recurring as well as occasional purchases. Moreover, one can easily benefit from facilities like a grace period, credit card interest rate is free for cash withdrawal, etc., which make utilising a credit card even more beneficial.

• Make online purchases –

Any and all types of online purchases should be made through credit cards to earn rewards. Some of the best credit cards offer discounted products when purchased through specific e-commerce sites or partnered stores, which can help save a significant amount on such transactions. Customers can also avail gifts and cashback from such purchases.

Cards even offer accelerated reward points for online purchases. Usually, the points offered are twice the number for the same sum of money if the product is purchased online with the card instead of from a physical store. 

The card issuer also provides pre-approved offers for their existing customer, which simplifies the application process and helps save time. Such offers are available on credit cards, personal loan, business loan, and several other financial products. You can check your pre-approved offer by sharing only some essential details online. 

• Spend on fuel purchases –

Some of the best credit cards offer substantial reward points when used to purchase fuel. These points can be later redeemed to save on future purchases. Card issuers also offer fuel surcharge waiver, which can help save even during regular purchase.

• Make travel bookings –

Booking air and rail tickets, hotels, and making out of station purchases can be done with a credit card for multiplied savings. Some card issuers offer attractive discounts on such transactions. Plus, the added safety and security offered with most such cards make them a more reliable mode of transaction.

Some of these credit cards come with zero-fraud liability cover and some form of in-hand security for enhanced security. These protect customers from unauthorised transactions and identity theft, both in their country and overseas. 

Reputed financial institutions also provide other services, like complimentary airport lounge access, which can prove significantly beneficial for frequent travellers.