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Go cashless and save more with your credit card

            Go cashless and save more with your credit card


In the latest attempt to promote cashless transactions, the Government has waived service tax on credit and card transactions of up to ₹ 2000. According to the Reserve Bank of India’s report on digital transactions for the year 2015, about 50-60% of the transaction made by cards is below ₹ 2000 in value. This is yet another reason for the common man to go cashless and opt for card transactions. Credit cards have a definite edge over debit cards because of the many reward points it comes loaded with and in the present day, it makes sense to use your credit card to your convenience and save money on it, now that service tax on transactions below, 2000 has been waived off. Here are some ways in which you can benefit from you reward points.

Look for benefits on affiliated cards

If you have a credit card that is affiliated with a retailer or an airline, in particular, look out for the deals on them, especially during the festival season. For instance, if you carry a store credit card you
may able to save anything between 2-5% on your purchases in the form of gift certificates or reward
points. This may not seem like much on its own but combined with a waiver in service tax up to the
value of ₹2000, you may be able to save anything between,150-300 on a purchase below,2000. Similarly, if you have a credit card that is affiliated with an airline, keep a lookout for deals offered during Christmas and New Year. Redeeming your air miles against expensive round trips this season
may bring in considerable savings for you.

Check out the year end specials

Whether it is an online or offline retailer, December is usually the season when the inventory goes
through an overhaul. This is, therefore, the season of sales. Redeeming your reward points during such sales in brick and mortar or virtual stores may help you lay your hands on stuff that you may have been eyeing for a long time.

Spend more and earn

Through demonetization and various moves to makes to make card transactions attractive the
The government is trying to get the Indian population to go cashless at large. If you opt to use your credit card for payment of your utility bills such as electricity, telephone and even insurance premiums you either earn reward points or cash back that can range from 5-15%. Additionally, you get cash back on a purchase of movie tickets, electronic goods, and restaurant bills. Thus, you can literally save money or get extra benefits by using your credit card regularly.

A word of caution

While the aim of the Government is to get you to go cashless, do not go reckless with your credit card
usage. While there has been a 60% surge in credit card usage post demonetisation, it is not the green
the signal for reckless usage. Here is a list of do’s and don’t to keep in mind for credit card usage.

Do:

 Pay your outstanding amount in full

 Pay on before the completion of your billing cycle

 Keep a strict check on your credit card statements each month

 Keep a vigil over your CIBIL score and CIBIL report to see that errors and discrepancies do not          creep in it

Don’t

 Purchase anything on credit that you cannot afford to repay in full within the billing cycle
 Let your credit utilization (or the amount of credit you use) as against the total credit made
     available to you exceed 30% By maintaining this basic financial discipline, you will be able to make the most of your card and contribute towards going cashless in this era of demonetization.

contribute towards going cashless in this era of demonetization.

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