Festive sales bring a mix of credit card discounts, cashback, loyalty points, reward vouchers and easy EMI offers. While these can lower the cost of purchases, they can also encourage consumers to spend more than planned in pursuit of rewards.
The difference between saving money and spending more to earn a reward often comes down to how consumers use these offers.
Amresh Acharya, MD and CEO of Loylty Rewardz, a loyalty and consumer engagement platform, says consumers should let their spending plans drive credit card usage, rather than allowing reward offers to influence buying decisions.
“Use your credit card for purchases you were already going to make, consolidate your everyday spends on one card to accumulate points faster, and pay the full balance every cycle,” Acharya says.
He cautions that carrying forward credit card debt can wipe out the value of rewards, as interest costs can exceed the benefits earned.
How to get more value from credit card rewards
Consumers can accumulate points faster by consolidating eligible everyday expenses on a card that offers suitable rewards. However, this strategy works only if the outstanding balance is paid in full every month.
For big-ticket purchases, Acharya suggests checking whether the card offers accelerated reward points on specific categories or partner merchants.
Redemption also matters. According to him, travel and other high-value categories may offer better redemption value than cashback. Consumers should compare the value of points across available redemption options before using them.
They should also factor in processing fees and interest costs on EMI purchases. A reward that looks attractive on paper may offer little benefit if the associated charges are high.
When do cashback and loyalty points actually save money?
Cashback and reward vouchers offer genuine savings when they apply to purchases consumers had already planned. However, spending more to unlock an offer can defeat its purpose.
“The problem is when an offer becomes the reason for the purchase rather than a benefit on top of it. A discount on something you do not need is not a saving, it is just a smaller unnecessary expense,” Acharya says.
Before using an offer, consumers should check whether they would have made the purchase anyway, whether the reward outweighs EMI interest or processing fees, and whether the points or vouchers will expire before they can be used.
Offers that can be combined with existing card benefits may provide additional value. Those requiring additional spending to unlock rewards need closer scrutiny.
Can prepaid reward cards help avoid borrowing?
Prepaid rewards and employee benefit cards offer another way to access festive deals without taking on credit card debt.
Abhijit Dey, Country Managing Director of Pluxee India, a digital employee benefits, meal card, and rewards provider, says these cards allow employees to use value already made available to them, unlike credit cards that involve borrowing and a repayment obligation.
Such cards and digital vouchers may also carry merchant offers, helping consumers access discounts on eligible purchases without borrowing to unlock them.
Dey says employer-provided benefits that support routine expenses can also leave more of an employee’s regular salary available for savings, household commitments and planned purchases.
Citing the WTW India Benefits Landscape 2026 report, he points out that 46% of employees identified financial wellbeing as a key priority, compared with 21% of employers.
Pluxee’s internal data shows that nearly two out of every three rupees spent on festive rewards through its platform goes towards day-to-day essentials rather than discretionary purchases, Dey says.
Five checks before using festive offers
- Set a spending limit: Decide your budget and shopping list before browsing sales.
- Prioritise planned purchases: Use points, cashback and vouchers on expenses you would have incurred anyway.
- Calculate the actual savings: Factor in processing fees, EMI interest and discounts that you may forgo.
- Check redemption conditions: Look at minimum spends, eligible merchants, categories and expiry dates.
- Avoid impulse purchases: Wait 24 hours before buying something that was not on your original list.