With credit card payments, you can enjoy a variety of benefits, and one of the most significant ones is cashback. With a credit card cashback offer, a percentage of your purchase amount is often returned to you. This way, you can save money on the transaction.
The cashback you receive may vary depending on the card issuer you’ve chosen, the type of card you have, and the categories of purchases you made using your card. If you’re keen on earning cashback, you may want to consider choosing a card that’s tailored specifically for that purpose.
How Does a Credit Card Cashback Work?
For credit card cashback offers and benefits, you should know the following details:
- When you use your card for purchases or payments, a percentage of the amount that you spend is received back in your account as cashback.
- Different types of spending, like travel, dining, or groceries, often offer varying cashback rates. Some cards provide higher cashback for specific categories.
- Some cards offer a direct percentage of cashback as a discount, while others may provide vouchers or discounts for future purchases.
- Many cards have a limit on how much cashback you can earn, either per category or annually, after which the cashback rate may decrease or not be applicable.
- Once you accumulate cashback, it can be redeemed in various ways, such as a statement credit, to pay bills, as a direct deposit or even used for shopping through vouchers or gift cards.
- To earn cashback, you may need to meet certain spending requirements or adhere to specific conditions set by the issuer, such as minimum purchase amounts or using the card within a specific timeframe.
For example, suppose you have a card offering 2% cashback on all travel-related payments and you spend ₹10,000 on flight tickets. In that case, you’ll earn ₹200 as cashback.
How to Earn Cashback with a Credit Card?
When using a card for spending across different categories, here is how you can earn cashback offers.
- Purchasing Regularly: You can earn more cashback on everyday purchases of groceries or other utilities. By making a regular habit of using a card, you can earn more cashback.
- Online Shopping: Because online shopping retailers have tie-ups with card companies, e-commerce shopping can provide higher cashback on online shopping categories in general.
- Paying Bills: You can easily gain more cashback by paying electricity bills, mobile phone bills, insurance premiums, or monthly instalments through cards.
- Spending on Travel Expenses: While booking travel tickets or spending on hotels or vehicle rentals, you can get extra cashback in most cases.
- Enrolling in Cashback Programs: Card issuers offer cashback programs every quarter. By participating, you can redeem higher cashback offers.
- Big Purchases: By spending on big-ticket items like buying furniture or electronics for your home, you can get bigger cashback rewards.
- Combining Reward Programs: By combining offers provided by cashback portals along with credit card companies, you can easily get more cashback points.
How to Maximise Cashback Offer Benefits
Here are some additional tips to maximise cashback benefits.
- Choose the Right Card: There are numerous cards available, but not all of them offer exclusive cashback offers. By comparing these cards, you can find the one that gives this perk and apply for the preferable one accordingly.
- Stay Updated with Offers: You can get more cashback if you keep track of the upcoming offers from the issuer and merchants. This way, you can make the most of your card.
- Shop From Certain Portals: Some popular brands give cashback when you shop online through their retail portals. Some may require you to have an account, while others simply have offers available for certain issuers’ credit cards.
- Review the Terms and Conditions: It’s essential to thoroughly read the card agreement to understand what qualifies as an eligible purchase for cashback. For example, you may be eligible only if you shop over the threshold amount.
- Sign Up for Bonus Earning Opportunities: Look out for special promotions or limited-time offers that may allow you to earn extra cashback. Most issuers provide bonus cashback for specific occasions, on certain milestones or when shopping at partnered stores. So, signing up for these promotions can significantly boost your rewards.
By keeping these additional tips in mind, you can increase your cashback benefits and choose a credit card wisely. While cashback is a good option, reward points give you flexibility to choose the benefit you want from your purchase. This is why applying for the One Credit Card is a smart move, as it gives accelerated rewards on all purchases along with cashback benefits.
By using this card, you can earn up to 5X credit card points on your top two spending categories each month. These offers are available in different categories, such as travel, entertainment, dining, online shopping, etc. Apart from that, you can locate your nearby offers and deals via GPS through the OneCard App. Apply online now and get the most out of your card!