Cashback credit cards give you the opportunity to earn each time you spend on your purchases, by giving you back a specific percentage of the amount spent in the form of cash rewards. Unlike traditional credit card reward programs that offer reward points or miles, cashback credit cards or money back credit cards give you a direct monetary benefit. The cashback may be offered as a statement credit or a direct credit to your linked bank account.
When you use a cashback credit card to pay for an eligible purchase, you earn a predetermined percentage of the amount as a cashback. For example, your money back credit card may offer a 1% cashback on all online purchases. So, if you spend ₹10,000 on an online purchase, you will receive a cashback of ₹100.
The nature and percentage of cashbacks offered vary from one card to another. 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 cashback credit card whose rewards align with the spends and purchases you regularly make.
Apart from the cashback credit cards mentioned earlier, there are other such credit cards that may not offer immediate cash back benefits but instead allow the redemption of reward points for cash.
Cashback Credit Card |
Annual Fee |
Reward points to cash conversion rate |
HDFC Bank Titanium Edge Card |
NA |
100 reward points for ₹10 |
IndusInd Bank Platinum Aura Edge Credit Card |
No Annual Fees |
1 reward point for ₹0.5 |
HDFC Freedom Credit Card |
₹500 |
1 reward point for ₹0.15 |
IndusInd Bank Platinum Card |
No Annual Fees |
1 reward point for ₹0.85 |
HDFC Bank Platinum Edge Card |
₹1,000 |
100 reward points for ₹10 |
IndusInd Bank Legend Credit Card |
No Annual Fees |
1 reward point for ₹1 |
Rewards credit cards and cashback credit cards, though frequently confused, are actually separate types of credit cards.
To gain a better understanding of the differences between the two, please refer to the table below:
Rewards Credit Cards |
Cashback Credit Cards |
Rewards Credit cards accumulate Reward Points for every purchase made. |
Cashback credit cards help earn cashback on card spends. |
Redeeming reward points requires a specific website/portal or net banking access. |
Cashback is automatically credited to your account, there’s no need to redeem the amount. |
Reward points have an expiration date, so they must be used within a set time frame. |
Cashback earned does not expire and can be used anytime. |
Reward points can only be redeemed for specific categories/products listed on the bank's reward catalogue. |
Cashback can be used to purchase anything you want. |
Some cash back credit cards waive the annual fee, making it a great option for those who want to enjoy the benefits of a credit card without paying any additional fees.
Many cashback credit cards offer travel benefits such as free airport lounge access, travel insurance, and discounts on flights and hotels.
Cashback credit cards offer EMI options that allow you to convert high-value purchases into easy monthly instalments with low-interest rates.
Credit Card |
Features |
Cashback Rewards |
|
Up to 1.5% cashback |
|
ICICI Bank Cashback Credit Card |
|
Up to ₹100 cashback per category per month |
Standard Chartered Super Value Titanium Credit Card |
|
Up to ₹200 cashback per month |
|
Up to ₹750 cashback per month |
At Bajaj Markets, the eligibility and documents needed to apply for a cash back credit card are simple as well as minimal. Let’s take a look!
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
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 above-mentioned eligibility criteria and list of documents are indicative. Depending on the money back credit card you choose, you might have to fulfil specific eligibility criteria or submit additional documents during the application process.
If you want to apply for a cash back credit card, Bajaj Markets is the right place to start the process. Follow these steps to complete your application procedure for a cash back credit card.
Step 1: Visit the official Bajaj Markets website.
Step 2: Hover on the ‘Cards’ section and click on the ‘Credit Card’ option.
Step 3: Browse through the various cash back card options available on the website and click on the one that you wish to apply for.
Step 4: Click on the ‘Apply Now’ button and fill the application form with all the requested details.
Step 5: Attach all the relevant documents and submit the application form.
That’s it! You have now successfully applied for a cash back card.
Both the cashback and rewards program follow the same concept, which is to incentivise you for using the credit card. You can come across certain cards that will allow you to convert the reward points into cash. On the other hand, you can find some reward credit cards that will allow you to convert the same into miles. The latter type of cards can prove to be beneficial if you travel frequently. Therefore, you must select a card based on your needs.
Any credit card would be worthy if you at least get the advantages that are equal to the annual fees paid. Since the majority of cashback cards come with a low annual fee, you can assuredly secure benefits by spending wisely on eligible products. You should always pay your bills on time so that you can realise the benefits instead of losing them on charges or late payment fees.
You can consider adding a cashback credit card to your wallet if your rewards card does not cover a particular spending category. Since cashback credit cards come with low or no annual fee, availing one will not burden your pocket.
Yes, the received cashback will be credited to your credit card account.
A rewards credit card is a good choice only if you stick to your budget and pay off the outstanding balance in full each month. Otherwise, you will not get the deal. So, if you pay off your balance in full each month, then a cash back or a money back credit card may be a wise choice.
Yes, it is possible to maximise cash back on a credit card. Make sure you read the terms and conditions thoroughly before buying the card. For instance, some cards may offer high cashback only if you shop at participating merchant outlets. If you don't shop at those outlets, the card won't have any value to you, no matter how big the rewards are.
It is up to you to decide which one is the best cashback card for you. That said, Axis Bank ACE credit card comes with a valuable cash back benefit
Rewards credit cards and cash back credit cards provide entirely different benefits. For instance, when you use a rewards credit card to make purchases, you get reward points. Once you’ve accumulated enough of them, you can choose to redeem the points in favour of discount coupons and e-vouchers. On the other hand, when you use a cash back credit card, a percentage of your transaction value is credited back to you.
So, even if you already have a rewards credit card, you may still choose to apply for a cash back credit card as well.
Although a cash back of 2% may not sound enough, the amount of savings that you would get to enjoy will add up in the long run. As a matter of fact, in many cases, cash back credit cards offer higher savings than other kinds of cards.
Many cash back credit cards tend to offer a higher rate of cash back for certain specific transactions. So, to maximise the amount of cash back, make sure to use your credit card to pay for transactions that are eligible for bonus or accelerated rewards.
Depending on the terms and conditions of your money back credit card, you may receive your credit card cashback as a statement credit or as a bank credit. If you receive it as a statement credit, you can use the cashback amount to lower the current outstanding balance in your credit card. However, if the cashback is credited to your bank account, you can use it like regular cash.