Should you consider upgrading to a premium credit card this Diwali?

Credit cards: This festive season if you have too many expenses lined up, you could consider using your credit card for a slew of benefits such as cashback and rewards. And if your card does not give so many offerings, then you could contemplate upgrading to a premium card that has an array of benefits you desire.

Those who are not aware, a premium card has a number of exclusive features and benefits which typically come at a price which is the card's annual fee. While regular cards have an annual fee of lower than ₹1,000, premium cards – on the other hand – could levy a fee of ₹10,000 or higher.

Before you opt for a credit card, you should consider a few points.

Premium card during Diwali: Points to consider

I. Annual fee: Remember that there is a high annual fee and it should justify the benefits that it accrues.

II. Existing cards: If you already have a number of cards and their cumulative benefits are more than you would ever need, then it is futile to apply for one more card, even if it is in premium category.

III. Short term or long term: Generally, credit card should serve you in the long run. So, applying for a card only to avail some benefits during the festival of Diwali may make sense when its benefits are going to outlast the festival season.

Key advantages of upgrading to premium card

Festive-specific rewards: Premium cards often have targeted Diwali promotions with high-value bonuses. These are applicable to eligible spends that are ideal for Diwali purchases such as electronics or jewellery.

Enhanced cashback: Cards such as HDFC Regalia Gold give 5X points on e-commerce.

Long-term perks: There are several long term perks also such as unlimited lounge access, travel insurance, and milestone bonuses that can justify the fee, especially if you travel post-festive season.

Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.

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