Here comes the time when the entire country will enter the glitz of joy, celebrations, enthusiasm and devotion. With the festival season around, there are numerous offers and finance options made available by consumer goods companies, banks and credit card providers. For many people, gifting is an integral part of celebrating the festive season. People tend to go on a buying spree with plans to spend on buying cars, houses, home appliances and other goods during this period.
However, it is important to plan wisely and keep a few guidelines in mind before you go on that festival binge.
- Freeze on a budget: Before you even go around looking at different things to buy, you have to ensure that you have fixed on the amount you are ready to spend for your purchase.
- Plan: Make a list of things that you need to buy and prioritize them. Accordingly, allocate a percentage of your spending budget to each of these goods. Of course, the latest television available on personal loan may attract your attention. But you should go in for the best rate of interest as well as the best terms and conditions when availing finance.
- Property/ Home purchase: Buying a home could also be a great idea during festive season. Many real estate companies and banks come up with attractive offers for you during Diwali. You can also consider combining Banks or Home loan Diwali offers with offers by real estate developers. However, it is advisable to look into your Credit Score and history before applying for a housing loan.
- Choose your loan provider wisely: Your choice of a finance company will bear an impact on your budget. Compare different offers from different companies and see which one can offer you the best product on the most optimal rates and finance options. Also, look for hidden charges and take that into consideration too. Ensure that the company you choose is the one which helps you stay within your budget.
Great offers from credit card companies will also be available. Use credit cards wisely this festive season and ensure you pay your bills on time.
Thus, if you are planning to purchase a car, house or high end products and home appliances this festive season on EMIs, it’s the time you check your credit eligibility by availing your Credit Score before you seek loan. This will enable you to “see yourself as lenders do” and assess your credit standing, thus helping you to make the appropriate buying decision. In other words, by planning a bit ahead and being a little judicious you can make your festival shopping fulfilling.
The author is Senior Vice President – Consumer Relations, CIBIL (www.cibil.com)