Do you remember those days when we used to prefer buying from a store rather than an online platform? How many times has your mom told you to remember the brand so that you could go and get a physical confirmation about the quality of a product? But the current scenario has evolved and made online shopping a way of life instead of a luxury. As the number of online shoppers has risen, the benefits extended to them have also increased. Right from special discounts on credit cards to easy EMIs, online shopping is popular for apparel and food takeaways alike.
Do not trust the myths!
People often believe that having a credit card can be expensive owing to its high credit limits and an unending range of benefits. But that is not the truth! If you use your credit card wisely and are aware of all the facilities extended to you, you will be able to use a credit card to its optimum usage without carrying a debt burden. You can set your own spending limit to ensure that you do not exceed your limits. In addition to this, you are always free to convert your big-ticket purchases into easy EMIs to cut the credit card bill.
Related Read: 5 Things You Should Do When You Get a New Credit Card
Why credit card for online shopping?
Here are a few reasons that should make you comfortable about using a credit card for your online transactions:
Every credit card comes with its loyalty points, reward system and cashback:
From the time credit cards have come into the market, they have built on the loyalty program to reward those loyal customers. Most credit card issuing banks set a minimum transaction amount that you must spend in order to accumulate reward points. Once you have enough reward points, you can use it to buy something. Another option is to avail vouchers provided by online platforms or even your banks for a movie or food delivery service. In addition to that, you can also avail decent discounts on premium credit cards every time you make a transaction.
Take care of your big purchases with easy EMIs:
Now that online platforms have become agile, it has now become easier to buy all sorts of furnishing items, gadgets, luxurious items online without any hassle. In physical stores, it was easier to hand over a check or withdraw cash from a nearby ATM and make the purchase, but that is not the case with online shopping. However, almost all online merchants offer no charge EMIs that help you reduce your big purchases into smaller chunks of payments.
Protect yourself from fraudulent transactions and defective products:
In cases where you transact using a mobile wallet or debit card, the amount is instantly debited from your account which means you have no leverage on the seller. This basically leaves the decision to refund on the seller and in case of a fraudulent product you may or may not get a replacement. But with credit cards, you can suspect fraudulent activity and raise the issue to your bank or company.
The online marketplace is beyond any national boundary. You can shop for products from the USA, Europe, etc. since most of them offer international shipping. However, not all sellers accept debit cards or net banking options. That mobile wallets are also nation specific. A credit card is a universally accepted payment method.
Add more points to your credit report: If you stay true to your spending limits and regular EMI payments, having a credit card will be very beneficial for your overall credit health. It will increase the number of credit transactions you make and if you are paying them on time, it will increase your creditworthiness. In either case, it is always advisable to keep a close eye on your personal credit score.
Is there time to avoid using a credit card?
You should be vigilant about what you always spend with your credit card. Whether you are meticulous or careless, ensuring timely payments is for all! Keep these 3 cases in mind to consider staying away from spending with your credit card:
- If you will be paying the minimum amount due instead of the complete amount
- If you are likely to get carried away and overshoot the limit
- If you have a high limit credit card and tend to spend more than you can afford to repay each month
Every credit card transaction gets reported to credit bureaus in India like CRIF on a monthly basis. If the details are in your favour then you will have a strong CRIF credit score. However, if you have not been able to hold your end of the deal, then your creditworthiness will be under serious threat.