Cashback credit cards 5 things you need to know before applying
Amid festival sale season, credit card companies are trying to capitalize on customers seeking instant gratification. Axis Bank and SBI Card recently launched new cashback cards. While Axis Bank has partnered with Samsung to provide a co-branded card, SBI Card offers up to 5% cashback on all online spending.
If you might be considering getting a cashback credit card, here are 5 key factors to know before you apply:Check if the rewards meet your needs
Cashback cards differ from ordinary bank cards only in the type of reward construction for the customer. Therefore, you should always check whether the offered rewards meet your requirements or not. You can opt for one based mainly on the utility you seek for the rewards.
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“In most cases, cashback on co-purchases can range from 0.2%-2% to 5%-10% on specific spend, which is for cards offered as co-branded playing cards.
However, there are some rewards programs in the market, especially those from big banks that offer bigger rewards.Compare all credit card options before applying
You should always explore several choices to find a card that will allow you to maximize rewards based primarily on your spending habits.
Also read: 5 reasons not to buy digital goldCheck if the cashback is credited to your card or to an online wallet
Cashback is calculated as a percentage of spend instead of reward points. “Customers should always verify that cashback is received in the form of press release credit or internet wallet credit, as many co-branded card issuers do. Although it is still a credit check, the customer is restricted to using cashback only at certain merchants.Do not apply if you cannot afford it
Finally, never ask for a credit card if you can't afford to make the payments on time. Lack of credit card expiration dates can affect your credit score.