Who doesn’t like to get money for spending money! That is what cashback credit cards do! You earn cash back for making purchases on your credit card! Read on to learn more about these cards.
Cashback Credit cards are immensely popular due to the opportunity to earn money while spending on your credit card. A cashback card is a direct and tangible monetary benefit – you can get the cashback as a credit on your monthly credit card statement; or you get actual cash deposited into your account, depending on your credit card.
Types of expenditure: Some credit cards offer the same cashback rates across all purchases and categories. Other cards give higher cashback offers on certain spending categories, such as partner supermarket spends or fuel spends. A few credit cards offer cashback on purchases and monthly utility payments.
In all cases, the customers get back a certain percentage of the amount they spend on their cashback card. The percentage of cashback and the spending categories differ, but the most basic feature of all cashback cards is that you receive a percentage of your spending amount back as cash, either in the account of your choice or adjusted as credit on your monthly credit card bill. Depending on your card, the cashback amount per month is capped at a particular limit.
Here are some of the most popular cashback credit cards available in India and their benefits:
The lifestyle credit cards issued by ICICI Bank offer cashback benefits through PAYBACK, a multi-partner loyalty program. The rewards on the ICICI Coral Credit Card include:
4 PAYBACK points on every Rs.100 spent on dining, groceries and at super markets.
2 PAYBACK points for ever Rs.100 spent on other transactions.
The PAYBACK points get accumulated every month and can be redeemed for either cash or gifts.
This is also a popular card and offers the following benefits:
5% cash back on movie ticket purchases.
5% cash back if you pay your telephone bill using your Citibank credit card.
5% cash back on all your utility bills using your Citibank Online Bill Pay.
0.5% cash back on all the other transactions.
Your cash back appears automatically as a credit on your monthly statement
The HDFC Money Back Credit Card, is also a popular card and offers the following benefits:
2 reward points for every Rs.150 spent on the card.
Reward points can be accumulated and redeemed as cash back against the outstanding amount on your credit card.
Reward points can also be redeemed for gifts and air miles.
The fuel surcharge of 2.5% is waived subject to a cap of Rs.250 per billing cycle.
Reward points are valid up to 2 years from the date of accumulation.
SBI’s Simply Save credit card offers the following benefits:
Standard Chartered Bank offers cashback and rewards whenever you shop with Manhattan Platinum credit card. Some of its features are:
Choosing the right credit card might not be so easy, given the multitude of options available in the market. However, you need to carefully consider the following:
Not everyone is eligible for a Cashback Card since these come with certain eligibility requirements that vary with different credit card issuers. So make sure you fulfill the eligibility criteria of a particular card before applying for it, to minimize the chances of being rejected and damaging your credit score.
Cashback Credit Cards benefit those who want to utilize their credit cards to the maximum and would like to be rewarded with cash rather than other perks or privileges for spending on their card.
Those who are looking to enhance their lifestyle while simultaneously saving in the form of cash back can opt for a Cashback Credit Card. It comes with various perks designed for the frequent shopper, frequent traveler, frequent flyer, those who spend on entertainment and those who dine out regularly.
To apply for a Cashback Credit Card, you can walk into the nearest branch of your chosen credit card issuer and submit the application. Or you can apply online on the bank’s website, if the option is applicable. Some banks give a limited period offer, like coupons or waiver on the charges for applying online. It can take up to 21 days for your credit card application to be processed.
Alternatively, if you think you need help with your credit card application and advice on eligibility, CreditMantri can guide you through the entire process and match you with the credit card that suits your needs the best.
Note: The cards mentioned in the article are merely indicative of the kinds of rewards and benefits on offer, and you will need to choose your card based on your specific requirements.