Plan Your Festive Shopping Better With Credit Solutions- Authored article by Wilfred Sigler

Festival season is the time of the year one embarks on a gifting spree. This season often boosts buying appetite since consumers have more choices for gifting and shopping, given the several lucrative discounts and flexible payment solutions available. It accounts for 35-40 per cent of annual revenue for most consumer companies in India. As the consumption demand was muted for the larger part of the year because of the pandemic, experts predict that consumer spending is reviving and that is a good indicator of the market sentiments. Many people today are banking on innovative credit options for their purchases. Let us look at the avenues below for maintaining your credit score in this festive season that will come in handy:

Make the most of the festive offers but do it judiciously

People tend to spend heavily during festivals and wedding seasons spending on shopping for clothes, electronics, jewellery, and even vehicles. Some like to take vacations with family. The advertisements and communications by companies and e-commerce platforms on discounts and special festive deals influence the minds of the consumers. This is the time when banks and lenders announce special schemes and strike partnership deals with brands to offer attractive and easy payment solutions. Many of us happily overlook budgets during festivals given the discounts on products that are otherwise exorbitantly priced. These attractive discounts and easy financing options should be utilized wisely but should not become a window for excessive impulsive buying. It is always advisable to keep your repayment capacity in mind due to your existing loans before opting for the festive schemes, offers and loan discounts. When loan offers may seem like a savior, especially with living costs going through the roof, ensure you do thorough research on the lender options and the type of loans you apply for before you make a hurried application. 

Evaluate your credit history and other parameters before borrowing

Given the current situation, most of the borrowers have resorted to opting for small ticket-sized loans that can sustain their immediate needs. While the time and deals are right, one must be aware of the credit history and credit score before applying for a loan. Loans should be taken for a genuine requirement and need to be paid back on time. The festive offers do make it a productive bet, but make sure you read the underlying terms and conditions before riding on the debt wagon. It is advisable to be prudent before taking on any excess expenditure during the festival period. Less planned decisions may affect your repayment capacity and adversely affect your credit score. These should be avoided. Instead, you should always take planned decisions regarding loans and keep paying on time that will improve your credit score further so that you can enjoy better credit solutions in the long run.

Keep a check on your credit card purchases and payments

One should be aware that every swipe with a credit card is a form of borrowing. Before you purchase anything on credit, it is essential to constantly check your capacity to repay the debt. It is critical to calculating the outstanding dues before diving to make a purchase. It is a healthy practice to set all due dates of credit card statement as a reminder to keep your credit card purchases under control as exceeding limits could affect your credit score and credit report directly. Also, to maintain a healthy credit score one must settle the credit card dues on time because any delay would hamper it. With technological advancements, purchases are at one’s fingertips. However, there are many quick online options to remind about and automate your credit card payment. Using such tools will keep your payments up to date and improve your credit score. One must keep monitoring the credit report at regular intervals. 

Financial planning can protect you from the post-festive burden

As consumers embrace the upcoming festivities, it is essential to celebrate without any financial worries. A healthy credit score can go a long way in shaping your financial portfolio and ensuring your moments of happiness. It is now getting easier to check the scores in the most accurate way so that you are financially aware and can plan your expenses in such a way that you save more and spend less.

Wilfred Sigler, Director – Marketing & Sales at CRIF India. 

Source: Publication: Outlookindia , 09th Nov,2020