Most credit card companies help their customers earn cashback on making purchases using their cards. Cashback credit cards are an extremely popular category of credit cards in India today. Read on to know more about these cards, including tips on how you can earn higher cashback by using them the right way.

What are cashback credit cards, and how do they work?

Cashback credit cards help you earn money and rewards upon making any purchase using your credit card. Certain credit cards offer cashbacks in the form of cash, while others offer reward points. A majority of credit cards in India today are cashback credit cards that help customers access cashback offers through expenditures related to lifestyle, travel, electronics, online food delivery, and entertainment. You can benefit a great deal by using a cashback credit card to make your daily purchases.

Tips to earn higher cashback while using your credit card:

You must choose the right credit card based on your daily expenses

You can start by shortlisting a few credit cards that belong to the same category. For instance, travel credit cards, lifestyle-related credit cards, etc. You must then compare these cards and reduce your shortlist to one-to-two cards that are most beneficial to you as a cardholder. While researching this, be sure to check the interest rate charged by these banks too.

Settle regular payments using your credit cards and maximise credit card rewards:

You can use your cashback credit card to make daily payments like rent, groceries, etc., and benefit from attractive credit card rewards. Certain cards offer higher cashbacks for utilities and groceries-related expenses.

Remain updated on cashback offers that are valid for a fixed period

Cashback credit cards often offer promotions on a variety of products and services ranging across several domains. You must constantly be on the lookout for the relevant cashback offers – especially the ones that are valid for a fixed period – to make the most of them while purchasing things. Cashback credit cards often partner with e-commerce platforms to offer cashbacks on groceries-related purchases. Be sure to check for these updates on your bank’s mobile banking app or website.

If you are traveling, try making the most of your credit card offers:

Several cashback credit cards offer irresistible travel-related offers. You can make the most of these offers while booking hotels and flight or train tickets. Several credit cards also offer complementary airport/railway station lounge access for a few times during a year. These generally tend to be credit cards associated with loyalty programs. If you remain updated on such offers, you can often combine cashback offers from multiple domains such as travel and lifestyle and save a considerable amount of money.

Plan for your card’s repayment before choosing it

You must plan for your credit card’s repayment before selecting it. This can help you repay your dues on time and without any hassle and avoid credit card debt. You can use an online credit card EMI calculator to know the value of your future credit card EMIs (equated monthly instalments). Doing so can help you avoid credit card debt and improve your creditworthiness.

You must remain updated about the various cashback offers introduced by the credit card issuer to make the most of your cashback credit cards.