Credit Card Offers: The attractive offers of banks and credit card companies like cashback, no-cost EMI and instant discounts may seem beneficial, but there are many hidden charges and conditions behind them. If you are not careful, these offers can increase the burden of debt instead of saving.
Festive Offers on Credit Cards: Every festive season, when online and offline stores are flooded with discount offers, banks and credit card companies are also not far behind. Customers are lured into saving through tempting deals like 10% instant discount, no-cost EMI, exclusive cashback offers on purchases made with credit cards. But do these offers really provide relief to the pocket of the common customer, or is it just a marketing trap in which customers end up spending more instead of saving?
Do you only keep an eye on bank offers or do you also look at the terms?
Offers from banks often seem very attractive – like 10% discount on purchase of ₹10,000. But if you read carefully, you will find that this offer is applicable only when you spend ₹15,000 or more. Moreover, most of the offers also have a maximum limit on the discount – like cashback of up to ₹1,500 will be given only whether you spend Rs 30,000 or Rs 50,000.
Do you really get the offer of No-cost EMI?
No-cost EMI sounds like a free deal, but there are hidden processing fees and platform charges in it. Many times GST and interest rate are already added in these schemes and the customer is not aware of it. If you want to repay the loan before time, then you may have to pay a penalty in the name of ‘foreclosure charge’.
Discounts are not available on all credit cards
Sometimes the offers are only for certain card holders – like Visa Signature or Mastercard World cards. In such a case, if you have a regular card, you will not get the benefit of discounts, even if you are spending the same amount.
Delay in getting cashback, but charges are quick
Often cashback does not come to your account immediately. It can take up to 60 to 90 days. At the same time, things like late payment fee, cash advance fee, overlimit charge are secretly included in your bill. All these charges add up in small amounts, but in the end become a big amount.
Saving is possible with credit card, but…
All these things lead to one conclusion that if you read every offer carefully, understand the terms and spend according to your budget, only then these deals can be beneficial for you. Otherwise, this saving remains just an illusion and can unknowingly trap you in the debt trap.
If you want to take advantage of credit card, keep this thing in mind
Overall, take advantage of the offers of banks and credit card companies only when you take steps with complete information and wisdom. Before getting trapped in the trap of tempting words, it is important to know the truth hidden behind it. Remember, only spending wisely is the real saving – otherwise, in the pursuit of discounts, instead of saving, you will increase your expenses.
