September 23, 2025 · 8 mins read
Santosh Kumar
Credit cards are popularly known for their excellent value-back programs – offered as reward points, cashback, or loyalty points. While debit cards offered with some premium savings accounts may also come with a rewards program, they would be much less than what one can get out of credit cards. With the right credit card, consumers can earn substantial value-back on their preferred spending categories.
The most important benefit of using a credit card is that people can make transactions without having to worry about interest. Credit card users get a limited time period for repayment of the due amount.
People usually plan to buy cars, home appliances, or other big-budget items during the festival season as they consider this period auspicious. The other reason is that many companies offer huge discounts during this season. But people often take bank loans for purchasing such items as they don't have enough money at their disposal. The drawback of availing a loan is that interest is charged on the loan amount. One of the ways to avail loans at zero interest rate for a limited period is through credit cards.
Rewards points are an aspect of credit cards that many people overlook, but they're the biggest benefit. Debit cards don't offer reward points as much as credit cards do. Many cards offer reward points if you use them for festive shopping. Most cards will give you 1 point for every Rupee spent. For example, if you buy gifts for 1,000 rupees, then you'll get 1,000 points. That might be equal to a freebie or even cashback. The reward points you earn can be used to make flight or hotel bookings, or can be redeemed as vouchers or discount coupons that can be used at different departmental stores, restaurants, etc. Various merchants and retailers offer discounts, vouchers, higher reward points, and cashback on transactions through credit cards.
There are numerous eCommerce platforms that can help you save big. So be ready for the sale with your credit card. In addition to offering impressive value-back across different spending categories, most credit cards come with additional benefits like complimentary lounge access, discounts on dining and movies, fuel surcharge waiver, etc. Depending on the type of credit card you own, you can save a significant amount through these perks.
With a premium card, for instance, you can get wide-ranging and substantial benefits like membership to premium hotels, unlimited domestic and international lounge access, complimentary golf games, and insurance coverage.
Credit Cards like ZET contain a bunch of Discounts and Reward points for users to avail and earn upon using the SBM ZET Credit Card on festival day purchases, which can't be offered by debit cards. Flat 5% cashback on voucher purchases, and it also includes more discounts by maintaining your credit score with Zet while earning cashback and up to 7% interest rate on FD. You can link UPI apps. UPI-specific rewards are planned for the future, so make payments with UPI apps if you can. You cannot earn rewards on transactions classified as EMI, withdrawals, or reversals. Keep this in mind and limit your spending to normal purchases.
Also Read: Upcoming Festive Season Sales 2025: Credit Cards That Give Maximum Benefits
When you use a debit card, funds are deducted directly from your savings account. On the other hand, credit cards provide you with additional purchasing power. You can use the available credit limit to make purchases, even if you do not have sufficient funds in your account. You can also make big-ticket purchases and convert the transaction into EMIs.
Though the debit card EMI feature is also available now, it is not extended to all consumers and typically comes with lower spending limits compared to credit cards. Moreover, the additional credit limit offered with credit cards is quite valuable in case of emergencies like hospitalization, travel, etc.
If someone uses a credit card for purchasing products and makes payment by the due date, their credit score improves. However, if one does not make timely repayment, it affects one's credit score. Besides, people should note that they should not do transactions above 30 per cent of their credit limit. Not repaying the due amount in time attracts a huge penalty. The next time you're ready to add a new credit card to your wallet, don't just consider the benefits of rewards and interest—also look at the ways credit cards can help improve your CIBIL Score, which is a measure of your financial health.
Also Read: Best Credit Cards for Grocery & Daily Needs Shopping This Festive Season
Have you had a bitter experience shopping online? You buy a product with great expectations, only to be disappointed that the product you received is defective or fake. When you pay with a debit card or mobile wallet, you do not have any leverage over the seller, as the amount is instantly debited from your account. On the other hand, when you pay with a credit card, you have the option to exercise the payment reversal feature. You can ask your card issuer to reverse the payment, citing the defective product.
Not just defective products, credit cards also protect you from fraudulent transactions. If you have a doubt that this is a fraudulent activity on your credit card, you can raise the issue with the credit card company. The card issuer investigates the transaction and reverses the charges if it's a fraudulent activity. This dispute resolution is also available with debit cards, but it generally takes longer to resolve.
There is a common misconception that credit cards are not as secure as debit cards. The reality is that credit cards are incredibly secure, especially the latest-gen cards that come with an in-built chip. Even if someone manages to steal your card number, they will not be able to misuse it, as the majority of credit cards today require two-step authentication. This means, besides entering the card number, CVV number (the three-digit code on the back of your card), you also have to enter the OTP received on your registered mobile number to authenticate the purchase. Thus, credit cards offer an additional layer of security and are highly safe for online purchases.
Festive sales come with grand offers and discounts. If you have insufficient cash in your bank account, you can use a credit card to take advantage of festive offers and repay the amount later through EMIs.
While using a debit or credit card to make payments for getting the discounts or reward points, you must read the offer's fine print because sometimes the offer is restricted to select items and to shopping above a minimum prescribed amount. For example, a credit card company offers 10% cash back on the purchase of a particular item on a popular shopping portal, but in the fine print, the maximum cashback has been restricted to Rs. 2000. So, it would help if you read the offer conditions very well before spending money for a specific benefit on a credit/debit card. SO, choose a credit card that offers various offers, discounts, cashbacks, and EMI options at its best, and it will be your go-to card for this festive season. On the other hand, debit cards can't offer all these advantages, so it's best to use a credit card instead of a debit card.
Also Read: Top Credit Cards Offering Instant Discounts on Fashion & Lifestyle Shopping
The ideal credit utilization ratio generally accepted by most lenders is a maximum of 50% of the total credit limit.
Spending the entire credit limit on the card shows the lenders that the cardholder is heavily dependent on the monthly credit to carry out even their financial transactions and does not have enough liquid cash. Such a cardholder is reviewed as a high-risk person for a future line of credit.
Yes. E-commerce websites have a secure payment gateway, and the cardholder is asked for an OTP to authorize every financial transaction. Hence, it is quite safe. However, the cardholders also have to ensure that the online shopping website is not fake and has a secure URL.
Credit cards allow the cardholder to buy the necessary things without the need for immediate cash outflow. Hence, they are a better option for online shopping.
Yes. Some credit cards have international acceptance depending on the bank and the profile of the cardholder. This makes it easier to use credit cards for international e-commerce websites.
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