7 Tips to Multiply Benefits of Credit Card Amid Cash Crunch

19 Sep 2020 // 27 min read // Credit Cards
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Cash back, discounts, coupons, vouchers and value-driven reward points are some of the well-known benefits of using Credit Cards. Amid pandemic where most of us are facing extreme cash crunch and cutting out monthly budget to stay afloat, using card judiciously can help ease the cash blues to a great extent.

Herein in this article we are going to list out some of the smart tips to use your Credit Card to ease out cash crunch and multiply its benefits & Value back offers.

Best Credit Card in IndiaConvert your purchase into EMI

Busting the Myth

First up, it’s important to bust out myth that Credit Cards lead to debt trap. For, Credit Cards not only help you ease your cash crunch situation but can also let you enjoy 20-50% more value for your money. Amid pandemic when you want to make maximum value for each penny, your card can greatly help you save money.

Unlock Max Value

Let’s learn about 7 smart ways to use Credit Card to save more during financial crisis.

Make most of 50 day free credit period

Most Credit Cards come with free credit period of up to 50 days. This also means, you can make transactions and enjoy interest-free period of 50 days with your Credit Card. Thus you can plan your big purchases on initial credit cycle of the card and repay gradually within 50 days as per your convenience.

Herein amidst pandemic & on all those financially challenging days, one can extract maximum value out of two Credit Cards with Credit Card billing dates on beginning & end of the month respectively. Simply tweaking bill payment dates you can enjoy greater repayment window.

However, repayment planning will be at the heart of this strategy of using cards for easy cash flows. Thus good planners, and financially wise people can enjoy maximum cash flows with a set of 2-3 Credit Cards with different repayment dates.

Cash back or value back

Cards like HDFC MoneyBack Credit Card offer cash back with transactions. You can use this amount to repay your card bill or make more purchases. Another popular benefit is value back in the form of 5-10% online shopping benefit on top ecommerce websites like AMAZON or FLIPKART.  Value back is as good as cash back as you get to save more or do free shopping. Many cards even offer enhanced reward points on online purchases. Thus having a shopping friendly card in your wallet can directly help you gain up to 10% more value of your money.

If you do not have one yet, you can choose the best card by comparing Top Shopping Credit Cards.

Rewards program

To extract maximum value from your Credit Card it is important to understand its rewards program. The earned rewards can help you enjoy exclusive discount offers and cash backs from top brands globally. So do read out the rewards program carefully before you Apply for a Credit Card.

A lot of people in India never use these rewards points as they never pay attention to accumulated stock of rewards in their card account. Many Travel Cards offer 10K plus rewards on renewal. If you too haven’t used your rewards ever, do take a stalk of the reward earnings. You may be able to get cash back, or pay out your Card Bill at a specified redemption rate or make free purchases or heavily discounted purchases through these unused rewards.

Apart from rewards value back offers you must also know about the rewards expiry date. SBI Credit Cards have a lifeline of 2 years. So it is also in best of your interests to redeem the reward points in time. Do check the expiry of rewards of the card when you avail it.

0% EMI

Amid cash crunch it is not possible to make all purchases upfront. Herein, having a Credit Card in your hand makes you eligible for 0% EMI purchase. However as a word of caution make sure you use this facility only for essential or planned expenses. Otherwise, monthly bill will be overwhelming for tenor of the EMIs.

Buying on EMIs not only helps you make a purchase despite the cash crunch but also keep your monthly repayment burden low. Furthermore, you also do not consume your card limit, which ensures there is enough capability to accommodate other expenses, whenever they arise.


From lifestyle purchases to dining out, to refuelling your vehicle to buying grocery, all kinds of purchases these days offer additional savings and discount schemes on Credit Cards. Some of the top Credit Card players to enjoy these benefits are HDFC Credit Card, SBI Credit Card, RBL Credit Card & more. 

In many cases, these discounts and offers are 10 % over & above the regular discounts, helping you save up to 30 % on some categories.

By buying your monthly grocery via a card you can save 10-20% in value. One of the popular cards in the segment is SimplySAVE SBI Card.

So choose your card wisely and make sure you save on your regular expenses.

Unlock max benefits

It clearly established by now that Credit Cards can help you save for different purchases. Though it would be a fallacy to expect a single card to help you reap max benefits in each segment. It is rather suggested to have different cards for different types of expenses. You can look for shopping cards, travel cards, rewards cards, lifestyle cards or a combination of 2-3 cards as per your life choices & spending habits. By making the right combo you can indeed ensure that you save every time you make a purchase. Thus compare and pick the best of the cards for your habits.


Not many card users know about all associated benefits that come along their Credit Cards. For example: HDFC Bank Regalia Credit Card which is better recognized as one of the best luxury Credit Cards, also offers a comprehensive protection plan to its owners. You get complimentary air accidental death insurance of 1 crore and emergency hospitalization benefits up to 15 lakhs overseas. Thus your card can be a shield against unprecedented crisis. Similarly you also get road accident cover & disability cover on different variants of Credit Cards.

All in all, owning a right set of Credit Cards in your wallet empowers you to face any financial emergency with grace. You do not need to look out for a soft loan, if you can manage your payments within a few days or even months!


Also Read: Best Credit Cards for Online Shopping


To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.

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