Why You Should Put Gadget Purchases on Your Credit Card

Gadgets have become an indispensable part of our life. Not just laptops and smartphones, technology has found its way in every single thing from watches to home automation. These gadgets fascinate everyone- be it a millionaire or middle-class person. Millennials are especially more inclined towards gadgets but their budgets may not allow them to make costly budget purchases. Credit cards come in handy in such scenario as nowadays it is quite easy to apply for credit card online. You can make a purchase and pay back in easy installments over a period. There are several other reasons why it makes sense to put your gadget purchases on a credit card.

1- Pay Back in Instalments

Gadgets are costly and letting go of a big amount at once can have a big impact on your budget. So, the main benefit you can avail by putting tech expenses on credit cards is that you can pay the amount in easy EMIs over a period of 3, 6, 9, 12 or even 24 months. The total amount will be deducted from your available credit limit and as you make EMI repayments, it will be added back to the available limit. If you pay a lump-sum amount, your bank balance will be instantly debited by the big amount which you could put to better use.

2- Promotional Zero-Cost EMI

If you plan to buy the gadget through an online marketplace, there are even more benefits of using a credit card. A number of e-commerce websites are coming up with the ‘zero-cost EMI’ or ‘no-cost EMI’ offer under which you would not have to pay any interest on the purchase. Normally, you are required to pay interest when you buy a gadget on EMIs. Longer the tenure more will be rate of interest. For example, if you pay for a gadget on Flipkart through HDFC Credit Card and make a 3-month or 6-month EMI, you will have to pay interest at the rate of 13%. But if you make EMIs for 9 or 12 month, the interest rate will be 14% and for 18 and 24 months EMI, the rate will be 15%. But if you buy under the no-cost EMI option, the interest will be zero no matter what tenure you choose.

3- Direct Discounts and Cashback

Major e-commerce websites keep coming up with new offers every now and then. Sometimes, these websites offer flat discounts or cashback when you use a particular bank’s credit card. For example, Flipkart may offer 10% cashback when you use SBI credit card or buying gadgets on Amazon through HDFC credit card could give you direct 5% discount. Cashbacks are credited into the wallet lin ked to the e-commerce website while discount is directly reflected in the checkout price. Some stores may also offer such discounts on select credit cards. These offers can only be availed when you pay with your credit card.

4- Easier to Grab Deals

When you have a credit card with enough credit limit, it is easier to grab the limited period offers on gadgets. You might not have enough savings to purchase a big gadget when it is on a limited period discount and even if you do have savings, you would not want to deplete a major part of it just for the sake of a fancy gadget. This is where a credit card helps. There is no need to ruin your budget for buying your favourite gadget; just put it on your credit card.

5- Better Cash Flow

When you pay with your credit card, your bank balance is not affected directly so you can have a better cash flow with you. Only your credit limit will be affected keeping your current budget intact. Moreover, with a credit card it will be easier to keep a check on the amount you are spending on expensive gadgets.

So, these are the benefits of putting tech expenses on your credit card.

Apart from the benefit of EMIs, rewards and discounts on gadgets and other purchases, getting a credit card also goes a long way in building your credit profile. Credit score is extremely important at the time of getting any type of loan. People with no credit history might find it difficult to negotiate a better deal on loans- be it a personal loan, home loan or vehicle loan. You can start your credit journey by getting a no annual fee credit card. It will not only allow you make big purchases but also create a good credit profile for you provided that you pay your total outstanding amount regularly.

With the government focusing on financial inclusion, more and more people have access to financial products these days. A number of electronics stores have also partnered with banks or financial services providers so that they can help people purchase a gadget even if they cannot afford to pay lump sum amount. EMI Cards have also become quite popular in the market. Bajaj Finserv is the first one to have brought this concept in the Indian market. EMI Card is a kind of pre-approved consumer durable loan wherein you can buy appliances and gadgets at zero interest charges without making any down payment. When you go to a store to buy a large home appliance like refrigerator, television, laptop or a gaming console, the store representative would give you the option of making the payment in installments and he would register you for an EMI card. Their partner financial institution will send you your EMI card at the mentioned address.

E-commerce websites have also allowed some users to avail EMI facility on debit cards but this is offered only to select users. Recently, some other websites have also come in the market offering the facility of making payment at a later date. However, this amount has to be repaid in lump sum. Hence, credit cards are the best way to buy your favorite electronic gadget.