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5 ways to save money using credit card


Credit card has become an indispensable part of our lives. It’s our job to use it wisely and to take the maximum potential of the card. The discounts and offers that a credit card offers are unmatched compared to any other financial product.

However, credit cards can become a debt traps if not used correctly, or if you spending is more than what you can repay. Let's look at 5 ways where you can save money using credit card.

1. Shopping

Credit card and Shopping

A lot of online retailers tie up with banks and offer additional discounts when your use credit card. This mainly happens during festive season or when a seller is finishing up his stock. Either ways, you need to keep an eye on the product you are going to buy and catch the opportunity of these additional discounts to save more.

For example, a product priced at Rs 10,000 comes with a 10% festive discount which lowers its price to Rs 9,000. On top of this, holders of a certain credit card can avail a further 10% discount saving more on this purchase.

There are specific credit cards which enhances your reward points when you use for certain amenities. When booking for flights, trains, hotels through certain apps and using certain credit cards will benefit you with additional discounts. If you are a frequent traveller, then these types of cards might be the best option for you.

Some of the best credit card for shopping online

  1. ICICI Amazon Pay credit card

  2. Amex Membership rewards credit card

  3. Standard Chartered DigiSmart credit card

  4. HSBC cashback credit card

  5. SBI SimplyClick credit card

  6. American Express SmartEarn credit card

  7. HDFC Regalia credit card

  8. Axis Bank Neo credit card

  9. HDFC Moneyback credit card

  10. Axis Bank Buzz credit card

For more information about shopping cards, you can checkout the article on

2. Airline Lounges

Airport lounge access using credit card

If you are the type of that business or travel guy who goes on vacation frequently, then using your credit card to gain premium lounge access is the best way to relax when you have layovers in between your flights. Additionally, you can even use this opportunity to explore the lounge where some offer free Wifi, food, Spa, washrooms and more.

There are certain benefits coming with cards as your travel miles gets increased. Some credit cards offer reward points for the miles you have travelled through flight making it even more rewarding for frequent flyers.

Some of the best credit card for airport lounge access across India

  1. HDFC Visa Signature Credit Card

  2. HDFC Bank Diners Club Black Credit Card

  3. Yatra SBI Credit Card

  4. SBI Advantage Platinum Credit Card

  5. SBI Platinum Corporate Card

  6. Axis Bank Miles & More World Credit Card

  7. Axis Bank Privilege Credit Card

  8. Axis Bank Signature Credit card

  9. IndusInd Bank Platinum Aura Credit Card

  10. IndusInd Bank Platinum Select Credit Card

For more information about travel cards, you can checkout the article on

3. Make purchases at the start of your credit cycle

Credit cycle

Once you have made purchase on your credit card, you need to pay the dues. Either you need to pay the full amount, minimum dues or convert to EMI’s. Before you pay all these, there is a billing cycle for the credit card, during this period your credit card bill will is generated. This billing cycle can start from any day in the month and lasts for 30/31 days.

For example, consider the billing cycle of a credit card user ending on 5th of every month. This means the billing cycle will start the next day (the 6th of every month). All transactions between the 6th of the previous month and the 5th of the current month will be shown in the credit card bill statement. Any transaction occurring on or after the 5th of the current month will be counted in the next/upcoming billing cycle.

The last date of the billing cycle is referred to as the statement date. Any credit card transaction after the statement date will be counted in the next cycle. So, it's better we make purchases at the start of a new billing cycle, so that there will be ample time to repay the amount. From the above example, purchasing product on 6th of a month is better than purchasing on 5th of the same month.

To know more about credit cycle, you can checkout the article on

4. Avail no cost EMI

No cost EMI on credit card

As the name goes, availing this facility can help you attain financial strength in the long run. But beware, this will also trigger you to buy more and burden yourself with EMI’s, more than your repayment capacity. Certain banks offer credit card with no cost EMIs where users can purchase items without worrying about processing fees, downpayment, etc.

For example, if an individual has bought a product worth Rs.12,000 and has chosen an EMI tenure of 6 months, he will have to pay Rs.2,000 per month. The total interest and processing fee charged will be Rs.0. Hence, the total amount that the buyer has to pay is Rs.12,000.

Nowadays, Flipkart and Amazon has started to give customers the option of no-cost EMI so that customers can buy their dream gadgets without burning hole in their pocket. Flipkart has tied-up with 13 different banks and Amazon with 11 banks to offer this finance scheme to its customers.

Some of the best credit card for getting No cost EMI

  1. Axis Bank

  2. HDFC Bank

  3. Citibank

  4. SBI

  5. IndusInd

  6. Yes Bank

  7. Kotak Mahindra Bank

  8. RBL Bank

  9. HSBC

  10. Standard Chartered Bank

For more information about no cost EMI, checkout the article on

5. Use reward points

Reward points on credit card

Reward points are among the most popular benefits of owning a credit card. The points you earn with different purchases will depend on your card. Some premium cards offer one reward point for every rupee spent while a regular card may offer one to ten reward points for every Rs 100 spent.

Once you have accumulated a certain amount of reward points, you can either claim these through online purchases or withdraw through banks or save them for cash backs. But be aware, reward points are valued much lesser than the actual spend value on credit card and you should not see this as a way to earn your money back.

Some of the credit card to get the best reward points

  1. SBI SimplyCLICK credit card

  2. American Express membership rewards credit card

  3. Standard Chartered Manhattan platinum credit card

  4. Standard Chartered Emirates World credit card

  5. MakeMyTrip ICICI Bank Signature credit card

  6. HDFC Bank diners club black card

For more information about reward generating cards, checkout the article on


Credit cards are excellent for saving during the festive season if used correctly and smartly. But you need to keep a few things in mind. First, avoid exceeding your allotted credit limit. If you have multiple credit cards, use them to spread out your purchases to stay within your credit limit. Using only 30% of your credit limit is generally better for your credit score.

Credit cards have hidden charges that could rack up the overall expenses like taxes, fees, late payment fees, joining fees, renewal fees, processing fees, etc. Missing a card payment could result in a penalty and repeated late payments could result in the reduction of your credit limit, which would have a negative impact on your credit score.

If you want to know how to budget your daily income, read article on 6 Hacks to budget your income.



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