Thinking of applying for a cashback credit card? Whether cashback credit is worth applying for? You have landed on the right page, in this article, you will learn about cashback credit cards and what are their advantages and disadvantages. Also, tips on how to choose a cashback credit card that suits your profile. While applying for a credit card you can either choose to apply online or visit the nearest credit card issuer branch. The most important thing is to compare credit cards before applying for a credit card as it will help you in choosing the right credit card. Keep reading to know everything about cashback credit cards:
What is a cashback credit card?
The incentives on the cashback credit cards revolve around cashback. You earn a percentage of your spending. Cashback credit cards provide you with a cashback reward rate of 1% - 6% on your spending. The cashback earned on these credit cards is directly credited to your account which makes it hassle-free for you when it comes to redemption. You do not have to worry about redeeming the rewards in a given time frame. Hereunder are the advantages and disadvantages of cashback credit cards:
Advantages of cashback credit cards:
- You get to earn a cashback on every spending.
- Cashback is directly credited to your account.
- On cashback credit cards there is no expiry date for earned cashback.
- You do not have to worry about redemption.
- They are pocket-friendly.
Disadvantages of cashback credit cards:
- You do not get to earn high rewards on these credit cards.
- The benefits and features of these credit cards are also limited.
- You can not convert the cashback into air miles or reward points.
Make sure the cashback credit card is right for you:
Before even applying for a cashback credit card make sure that your decision is right. Know whether a cashback credit card is right for you or not. For this, you need to analyze your spending habits and needs as well. After that only you will know whether this type of credit card fits your profile or not. If you are a first-time credit card user and you do not know how to deal with credit cards then you must go with this type of credit card. The best cashback credit cards that you can consider applying for are HSBC Cashback Credit Card, Amazon Pay ICICI Bank Credit Card, Flipkart Axis Bank Credit Card, etc.
Tips on how you can choose a cashback credit card:
To apply for a cashback credit card you must consider these tips while choosing a cashback credit card:
- Select those cards which suit your needs and spending habits.
- Check which cashback credit card offers the highest rate of cashback.
- You can compare cashback credit cards based on welcome benefits, travel benefits, entertainment benefits, milestone benefits, hidden fees and charges, interest rates, etc.
Bottom Line:
With a parting thought, we can conclude that cashback credit cards are worth considering especially for first-time credit card users. These are ideal to start your credit journey and great for building a good credit score. You can definitely upgrade your credit card after some time when you have learned to manage a credit card and have built a credible profile. The best part about cashback credit cards is that there is no expiry date for redeeming the rewards and cashback is directly credited to your account. No matter which type of credit card you get, two things you have to always keep in mind one is that you need to keep your credit card dues clear and the other one is to keep your credit utilization ratio low.
Additional Reading: How To Increase Credit Card Limit?
