In our Gen-Z population, there is a high trend of spending money on shopping, vacations, etc, and various leisure activities without keeping an actual check of the amount spent. In such scenarios, just imagine if you can save some bucks and spend to your heart’s will at the same time. Won’t that be amazing?
This can be made possible if you start using credit cards for your shopping extravaganza. These credit cards act like financial tools through which you can borrow money from financial institutions like banks and spend it to make purchases up to a pre-determined card limit.
These credit cards sometimes give amazing cashback and discount offers! These cashbacks are sometimes in the form of various rewards that you can redeem within a time limit and enjoy. If you get a monetary cashback, then it will be credited back to your account, or that certain amount will be deducted from your bills during your next purchase.
In this article, we will explore a lot about Cashback credit cards, their benefits, and how to maximize these benefits for your spending lifestyle.
What are the Various Types of Credit Cards?
There are various types of credit cards providing rewards in different domains. Let’s explore them here:
- Regular Credit Cards: This is the basic credit card that gets issued from your banking institute. Here, you can enjoy the basic features of credit cards like fuel waivers, shopping cashbacks, discounts on utility bills, etc. You also get add-on credit cards, which you can share with your family members.
- Premium Credit Cards: These cards are intended for people with higher income and expenditure brackets. The credit limit is higher for these cards, and the rewards are better than those of regular credit cards. You get lounge access for some airports via these cards.
- Super-Premium Credit Cards: These cards are meant for the most elite category of the population. They provide benefits like access to premium hotels and longes, top-notch rewards and savings from premium destinations, discounts at dining places, and complimentary cricket and golf games.
- Cashback Credit Cards: With these cards, you can enjoy rewards on your daily expenditure in the form of monetary cashbacks. You can enjoy features like interest-free credits, fuel discounts, smart bill payments, etc, with these cards.
- Co-Branded Credit Cards: These cards are designed for specific domains. For example, if you travel a lot, you can try to use the co-branded credit cards in the travel domain, which will help you get offers on flight charges, baggage insurance, free lounge access, free air miles, etc. These will help you to enhance your flight experience without any extra expenditure.
- Business Credit Cards: These cards can be used only for commercial purposes. Along with the basic rewards, you get features like spending analysis and accounting features with these cards.
- Secured Credit Cards: If you don’t have a stable and good income source and a good credit score, you can apply for these cards. Here, you don’t need to show proof of income or go through a verification process for your credit score. You get these credit cards if you have FDs in the banking institute you are issuing the card.
- Lifestyle Credit Cards: You get offers and discounts on lifestyle expenditures like travel, dinners, shopping, etc. The best part of these lifestyle credit cards is the amazing gift vouchers that you can issue on certain purchases.
How can you get more cashback on the credit card payments?
You need to follow the methods mentioned below to maximizing rewards and cashback from credit card payments:
- Choose the Right Card: Choose a credit card that can help you win high cashback on categories that are deeply connected with your spending nature. Take, for instance, if you have been shopping at a supermarket or eating at a restaurant, then consider getting a card with a special cashback scheme in those categories.
- Take Advantage of Sign-Up Bonuses: Some credit cards come with bonuses for new cardholders. Don’t forget to apply for cards, reach out to those with attractive sign-up bonuses, and meet the spending threshold to earn additional cashback.
- Use Your Card for Everyday Expenses: Put your credit card as your main payment device for routine expenses such as groceries, gas, utilities, and bills, thus becoming your credit line. By letting your card be handy for these recurring purchases, you will be able to generate more cashback rewards persistently. This will help you in the optimization of your financial habits and enjoy the extra benefits you deserve!
- Pay Your Balance in Full Each Month: In order to cut the Wace of interest for your credit card amount, ensure that you’re settling your statement balance in full and exactly on time each month. This way, you are not only able to get cash rebates as a reward but also save money by not paying additional interest costs.
- Stack Cashback with Other Offers: Sift through the layers of cashback offers to double up on other kinds of discounts, promotions, or rewards systems. Let’s say that you use cashback websites or apps when placing online orders and thereby adding additional cashback from your credit card.
- Monitor Special Offers and Promotions: Be always checking credit card offers, promotions, and limited time specials with your credit card issuer. Such offers may include additional cash-back opportunities, credits on statements, or partner awards that allow you to earn more rewards.
- Redeem Your Rewards Wisely: In order to get back your cashback rewards gainfully and prudently, get them frequently. Among some credit cards, there is a stronger debit value for certain redemption options, like statement credits, shopping cards, travel bookings, or goods bought at the stores. The preferred choice is the redemption option with the highest value for your rewards.
By using these effective Cashback strategies, you can save a significant amount of money and get advantages in several domains of your life.
Different types of cashback programs
You should try out the following cashback programs for harnessing the maximum benefits for yourself:
Credit Card Cashbacks
Obviously, you must have understood that if you make certain purchases, you become eligible for interesting cashbacks and rewards. The amount of cashback depends on two factors: the card you own, and the amount of transaction you are doing.
Ecommerce Purchase Cashbacks
Many ecommerce retailers have started to partner up with cashback platforms to offer high cashbacks to customers making a purchase from their online shopping store. It is usually a certain percentage of the purchase amount, and it is credited back to the customer’s bank account.
Reward Earning Apps
Nowadays, if you check out the Play Store, there are several apps coming up which provide cashbacks dedicated to consumers. You can use these platforms to find extensive deals and offers and purchase stuff at the right price!
Loyalty Programs
Sometimes, you can get cashbacks as a part of the loyalty programs conducted by different retailers. When you earn a certain amount of points from purchases, you can redeem those points in the form of new purchases or cashbacks.
Tips to keep in mind while using these cards
- You should maintain a proper record of the cashback rewards so that you don’t miss out on any and enhance your financial wellness. For this, it is recommended that you maintain a proper Excel sheet which you must frequently review and update so that you get the maximum benefits.
- Please read the eligibility category properly before you sign up for any card with the intention of cashbacks. You should be able to meet the minimum purchase amount for claiming these cashbacks. Hence, it is important that you are familiar with all the important details.
- Comparing all the reward and cashback platforms is a must. Don’t just choose anyone at random. Conduct proper research and find the one perfect for your spending habits.
- Cash advances on credit cards often come with high fees and interest rates. Avoid using your credit card for cash advances unless absolutely necessary, as they can quickly lead to debt accumulation.
- Resist the temptation to make impulse purchases with your credit card. Instead, take time to consider whether a purchase is necessary and aligns with your financial goals.
Final Words
By now, you must have understood all the details about Cashbacks and credit card benefits which you can earn by using credit cards. You need to review all the terms and conditions properly so that there are no issues when you try to redeem the offers. With the right usage of the cards, you can enjoy free gifts, cashbacks, gift vouchers, free lounge access, dining offers, and much more. This can make your lifestyle more comfortable without requiring you to make any additional expenditures. Stay tuned with us to learn more about financial management.