In today’s fast-paced world, credit cards have become an essential financial tool for individuals and businesses alike. They provide convenience, flexibility, and various benefits, including cashback rewards.
Cashback credit cards have gained immense popularity in India due to their ability to earn rewards on everyday purchases. If you’re looking for the best cashback credit cards in India, you’re in the right place.
In this article, we will explore the top cashback credit cards available in the Indian market, their features, benefits, and how to choose the one that suits your needs.
Understanding Cashback Credit Cards
What are cashback credit cards?
Cashback credit cards are a type of rewards credit card that offer a percentage of the amount spent as cashback on eligible transactions. These cards incentivize cardholders to make purchases by providing them with a monetary reward. The cashback can be accumulated over time and redeemed for various purposes, such as statement credits, gift vouchers, or merchandise.
How do cashback credit cards work?
When you make a purchase using a cashback credit card, a certain percentage of the transaction amount is credited back to your account as cashback. For example, if a credit card offers 2% cashback and you spend Rs. 5,000, you will earn Rs. 100 as cashback. The accumulated cashback can be redeemed according to the card’s terms and conditions.
What are the benefits of using cashback credit cards?
Cashback credit cards offer several benefits to cardholders, including:
- Rewards on everyday spending: Cashback credit cards allow you to earn rewards on your everyday expenses such as groceries, fuel, dining, and online shopping.
- Money-saving opportunities: By earning cashback on your purchases, you can save money in the long run and get more value out of your spending.
- Flexible redemption options: Most cashback credit cards provide various options for redeeming the accumulated cashback, such as statement credits, gift vouchers, or merchandise.
- Additional perks: Some cashback credit cards offer additional perks such as discounts, complimentary airport lounge access, travel insurance, and concierge services.
Now that we have a better understanding of cashback credit cards, let’s explore the best options available in India.
Best Cashback Credit Cards in India
HDFC MoneyBack Credit Card
The HDFC MoneyBack Credit Card is a popular choice among individuals looking for a cashback credit card. Here are some key features of this card:
- Cashback: Earn 2 reward points for every Rs. 150 spent on the card, which can be converted to cashback.
- Welcome Benefit: Get 500 bonus reward points on your first spend within 90 days of card issuance.
- Fuel Surcharge Waiver: Enjoy a fuel surcharge waiver of up to Rs. 250 per statement cycle.
- Zero Liability on Lost Card: Protect yourself from any fraudulent transactions in case of card loss.
- Interest-Free Credit Period: Avail of an interest-free period of up to 50 days on your purchases.
SBI SimplyCLICK Credit Card
The SBI SimplyCLICK Credit Card is designed for online shoppers, offering attractive rewards and benefits. Here’s what you need to know about this card:
- Cashback: Earn 1% cashback on all online spends using the card.
- Welcome Benefit: Receive e-vouchers worth Rs. 500 on joining.
- Milestone Rewards: Get Amazon gift vouchers worth Rs. 2,000 on annual online spends of Rs. 1 lakh or more.
- Worldwide Acceptance: Enjoy the convenience of using the card globally at millions of Visa outlets.
- Contactless Technology: Make quick and secure payments by simply tapping your card at contactless-enabled terminals.
American Express SmartEarn Credit Card
The American Express SmartEarn Credit Card is an excellent choice for individuals who want to earn cashback rewards on their everyday purchases. Consider these features:
- Cashback: Earn 1 Membership Rewards Point for every Rs. 50 spent, which can be converted to cashback.
- Welcome Benefit: Receive 5,000 bonus Membership Rewards Points on spending Rs. 10,000 within the first 90 days.
- Supplementary Cards: Extend the benefits of your card to your loved ones by getting supplementary cards for them.
- Zero Lost Card Liability: Protect yourself from any unauthorized transactions in case of card loss.
- Travel Benefits: Enjoy exclusive travel offers, including hotel discounts and complimentary travel insurance.
ICICI Bank Amazon Pay Credit Card
The ICICI Bank Amazon Pay Credit Card is a co-branded credit card that offers attractive rewards for Amazon customers. Here are the key highlights of this card:
- Cashback: Earn up to 5% cashback on Amazon.in purchases for Amazon Prime members and up to 3% cashback for non-Prime members.
- Welcome Benefit: Get Amazon Pay Gift Card worth Rs. 750 on card activation.
- No Joining Fee: Enjoy the benefits of the card without paying any joining fee.
- EMI Options: Convert your high-value Amazon purchases into easy EMIs.
- Contactless Payments: Make contactless payments using the card for a seamless shopping experience.
Standard Chartered Manhattan Platinum Credit Card
The Standard Chartered Manhattan Platinum Credit Card is known for its generous cashback rewards and dining privileges. Consider the following features of this card:
- Cashback: Earn up to 5% cashback on supermarkets, department stores, and restaurants.
- Welcome Benefit: Receive 5,000 reward points as a welcome bonus on your first transaction within 90 days.
- Bonus Rewards: Get additional reward points for crossing monthly spend thresholds.
- 24×7 Concierge Service: Access personalized assistance for travel, dining, and entertainment bookings.
- Credit Card Offers: Enjoy exclusive discounts and offers on shopping, dining, and lifestyle experiences.
Choosing the Right Cashback Credit Card
When selecting the best cashback credit card in India, consider the following factors:
Factors to consider
- Cashback Categories: Different cashback credit cards offer rewards on specific categories such as groceries, fuel, dining, or online shopping. Choose a card that aligns with your spending habits.
- Cashback Percentage: Look for cards that offer higher cashback percentages on eligible transactions. Compare the rates across various cards to find the most rewarding option.
- Annual Fee: Consider the annual fee associated with the card and evaluate if the rewards and benefits justify the cost.
- Additional Benefits: Look for additional perks such as welcome bonuses, milestone rewards, fuel surcharge waivers, or complimentary insurance coverage.
- Credit Limit: Ensure that the card’s credit limit meets your spending requirements and financial capabilities.
Credit card eligibility
To be eligible for a cashback credit card in India, you generally need to fulfill the following criteria:
- Age: You should be above 18 years of age and below the maximum age specified by the bank.
- Income: Most banks require a minimum income level, which may vary depending on the card you choose.
- Credit History: A good credit score and a clean credit history enhance your chances of approval.
Interest rates and fees
While cashback credit cards offer rewards, it’s important to consider the interest rates and fees associated with them. Some key aspects to look for include:
- Interest Rates: Check the annual percentage rate (APR) on purchases and the interest-free period provided by the card issuer.
- Annual Fee: Evaluate if the annual fee is justified by the rewards and benefits offered.
- Late Payment Charges: Familiarize yourself with the penalties for late payments to avoid unnecessary fees.
Cashback terms and conditions
Before choosing a cashback credit card, read the terms and conditions carefully. Pay attention to:
- Minimum Spends: Some cards require a minimum spend threshold to be eligible for cashback rewards.
- Redemption Options: Understand the options available for redeeming the cashback, such as statement credits, gift vouchers, or merchandise.
- Expiration of Rewards: Check if the cashback rewards have an expiration date to make sure you utilize them before they lapse.
By considering these factors, you can select the best cashback credit card in India that aligns with your spending habits and financial goals.
Frequently Asked Questions (FAQs)
- Are cashback credit cards suitable for everyone?
- Cashback credit cards are suitable for individuals who make frequent purchases and want to earn rewards on their spending. However, it’s essential to evaluate your spending patterns and credit card usage to determine if a cashback credit card suits your needs.
- How can I maximize cashback rewards?
- To maximize cashback rewards, focus your spending on categories that offer higher cashback percentages. Additionally, check for promotional offers and bonus rewards that can help boost your cashback earnings.
- Can I redeem cashback for statement credit?
- Yes, many cashback credit cards allow you to redeem your accumulated cashback as a statement credit, reducing your outstanding balance.
- Are there any limitations on cashback redemption?
- Cashback redemption options and limitations vary across different credit cards. Some cards may have a minimum threshold for redemption, while others may have restrictions on specific categories or redemption methods. Refer to the terms and conditions of your card for more details.
- What happens if I miss a credit card payment?
- Missing a credit card payment can result in late payment charges, a negative impact on your credit score, and the accrual of interest on the outstanding balance. It’s important to make timely payments to avoid these consequences.
- Can I upgrade or downgrade my cashback credit card?
- Many banks allow you to upgrade or downgrade your credit card based on your needs and spending patterns. Contact your credit card issuer to inquire about the available options.
Cashback credit cards provide a valuable opportunity to earn rewards on your everyday purchases in India. By choosing the best cashback credit card that suits your spending habits and financial goals, you can enjoy a range of benefits, including cashback rewards, welcome bonuses, and additional perks. Remember to consider factors such as cashback categories, cashback percentages, annual fees, and credit card eligibility when making your decision. With the right cashback credit card in your wallet, you can make your spending more rewarding and maximize your savings.