Cashback Credit Card

Cashback credit cards reward you every time you use them by giving you a percentage of your spending back in the form of cash rewards. How this works is that when you pay for an eligible purchase, you earn a predetermined percentage of the amount as a cashback. 

Let’s assume that your credit card offers 1% cashback on all online purchases. So, if you spend ₹10,000 on an online purchase, you will receive a cashback of ₹100. 

The cashback may be offered as a statement credit or a direct credit to your linked bank account. The nature and percentage of cashback offered vary for every card. The cashback may also be different across categories of purchases. 

So, ensure that you read the terms and conditions before applying for a money back credit card. To maximise your rewards, it is best to choose a card whose rewards align with the spends and purchases you regularly make.

When making a purchase, you end up using your credit card to pay for the entire purchase amount. The merchant (or the seller) pays a fee, also known as the interchange fee, to your credit card issuer. This fee is paid to facilitate the transaction. 

A portion of the purchase amount you spent is what you typically earn as cashback. This amount gets credited to your statement at the end of your billing cycle. Sometimes, it may take a little longer to reflect in your account.

Apart from the cashback credit cards mentioned earlier, there are some credit cards that may not offer immediate cashback benefits. Instead, they allow the redemption of reward points for cash. Here are some of these:

Rewards credit cards and cashback credit cards sometimes end up being used interchangeably. However, they are actually separate types of credit cards. 

To gain a better understanding of the differences between the two, refer to the table below:

The eligibility and documents needed to apply for a cashback credit card are simple as well as minimal.

1. Eligibility Criteria 

• Nationality: You must be an Indian citizen

• Age: Your age must range between 18 and 70 years

• Employment Status: You must be a salaried or a self-employed individual

• Other Criteria: You must abide by the bank’s income and credit score criteria

2. Documents Required 

• Proof of Address: Ration card, Aadhaar card, passport, or Voter’s ID (one copy)

• Proof of Identity: Aadhaar card, PAN card, passport, or driving licence (one copy) 

Note: The eligibility criteria mentioned above, and the list of documents are indicative. Depending on the money back credit card you choose, you may have to fulfil specific eligibility criteria or submit additional documents during the application process.

There are a few factors that you should consider to ensure that you opt for the best cashback credit card in India. Here is a quick look at a few of them. 

• Your Needs

The benefits offered by a credit card should align with your requirements. For instance, there are cards that offer great rewards for groceries and departmental store purchases. Similarly, there are others that reward you for fuel transactions. You should choose a card whose benefits match what you are going to be using it for.

• Annual Fees of the Card

Not all cards come with the same annual fee. There are lifetime-free credit cards as well as cards that have an annual fee ranging from ₹499 to ₹1,499 and more. It is important to choose which card’s annual fee you can afford. 

• Rate of Cashback 

The rate of cashback that you are eligible for varies depending on the card that you choose. The higher the rate, the more the savings. So, when shopping for the best cashback credit card, make sure to get one that offers a high rate. 

• Accelerated Rewards 

Some of these offer accelerated cashback on certain specific transactions. It is advisable to opt for the ones that offer such bonus rewards since they can help you maximise the cashback that you get to receive.

You can get started right away. Follow these steps:

1. Click on ‘Apply Now’ on this page

2. Enter your details and accept the ‘Terms and Conditions’

3. Validate your mobile number by entering the OTP you’ve received

4. Fill in the details required for your application

5. Check the credit card offers available for you

Compare the features of all cards, before you apply for the one that suits your needs the best. Once you submit your application, the concerned representative will contact you to process the application further.