Using Credit Cards for Online Shopping: All You Need to Know

With the strategic use of a credit card online, you can unleash the convenience and rewards of shopping. Choosing a card that complements your buying preferences can help you maximise savings whenever you use it at an online merchant store.

However, before you embark on an online shopping spree, it's crucial to learn how to use your credit card responsibly. Here’s how you can shop smartly with your credit card, reap the benefits and transform your online shopping experience.

Why Choose Credit Cards for Online Shopping?

You can enjoy various benefits when you buy something using a credit card online. These include:

Enjoy Convenience

• Other payment methods like, debit cards and UPI, may not be acceptable at every online retail portal, especially international websites.
• However, almost every website accepts payments through a valid credit card.
• Using your credit card lets you evade the long payment process and make payments quickly at a merchant's website.

Enhance Safety

• Credit card companies need to comply with advanced security measures to protect users’ sensitive data.
• Encryption and fraud monitoring technologies enable them to detect fraud in real time.
• This allows you to avoid falling into any catfishing scam or identity theft.
• In case of any mishaps, the credit card support system ensures faster dispute resolution.

Allows Easy Tracking of Expenses

• By looking at your account statement, you can get the details of your expenses made through credit card online purchases.
• This helps you track your expenses and identify the areas where you spend most so that you can earn higher reward points.
• It also allows you to recognise the categories where you need to minimise spending.

Earn Rewards and Other Benefits

• You can get various benefits when you shop using your credit card online.
• Credit cards provide these benefits in the form of reward points and cashback.
• If your card provides reward points, you can redeem them for actual currency or added discounts on certain spending categories.
• Many credit card companies also collaborate with merchants to offer exclusive deals on online shopping.

Improves Credit Score

• Note that timely payments translate into higher credit scores and better loan offers in the future.
• Hence, ensure making credit card payments on or before the due date to avoid damage to your credit score.
• What’s more, timely payment of the full balance lets you avoid late payment and interest charges.

Provides Purchase Protection

• Certain credit card companies also provide protection on the items that you purchase through a credit card online.
• For instance, credit card companies may offer a refund if the purchased item is damaged within a few days or months.
• Some issuers even offer price protection, which means that the issuer may offer a refund if its price falls at a later date.

Convert Large Bills into Affordable EMIs

• Large purchases can dent your savings if you make an upfront payment for the item.
• With credit cards, you can also convert your big-ticket purchases made through a credit card online into monthly instalments.

Things to Consider When Using Credit Cards for Online Shopping

The foremost thing to take into account when you apply for a credit card is to check whether it matches your spending preferences. If you have already got one, these are the things to keep in mind:

Fees and Other Charges

While credit cards can offer varied benefits for online shopping, they may also come with annual and joining fees. It is crucial to review these charges as they can reduce your card’s cost-effectiveness in the long run.

Debt Accumulation Risk

Credit cards always come with a risk of overspending and incurring debt that you may find difficult to repay. Hence, it is crucial to stick to your original budget to avoid impulse purchases.

Rewards and Cashback

As mentioned earlier, some credit card companies provide bonus reward points when you shop from certain merchant stores. Make sure that you use your card at online retailers where you get higher rewards. Also, ensure that you redeem these points before their expiry.

Spending Limit

If you shop online, make sure that you don’t exhaust your credit limit. Remember that a higher credit utilisation ratio will adversely impact your credit score.

In conclusion, you can use credit cards to turn your shopping experience into a rewards bonanza and save more. But, before you get swept away by the benefits offered by credit card companies, choosing a card that aligns with your spending preferences is prudent.

If you want a card that offers accelerated benefits on your highest spending shopping categories, get the One Credit Card. With this premium metal card, you can enjoy 5X rewards, exciting value-back offers on grocery shopping and exclusive deals on other retail stores.

What’s more, you can use its powerful mobile application to track all your expenses to ensure you don’t overspend. Apply now to get these benefits and more!