Among all the benefits offered by credit cards, cashback is possibly the most sought-after. With cashback, you do not have to deal with the hassle of first earning the reward points and later redeeming them against multiple categories. With the growing popularity of cashback cards, leading issuers have launched several credit cards that are specifically designed to offer generous cashback on your expenses instead of reward points.
When it comes to cashback, Axis Ace is one of the most popular cards that is known for 2% flat-rate cashback across all transactions. You can apply for Axis Bank Credit Card and save on multiple categories like bill payments, online food orders, travel and much more.
However, Axis Ace might not be the right choice for everyone. The right credit card would be the one that aligns with your lifestyle. With multiple cashback cards available in the market, it becomes difficult to find the right credit card based on your needs.
Here are some of the points that you should keep in mind while choosing the right cashback credit card for yourself.
Analyze your requirements
Before choosing a credit card, it is important to analyze your requirements to find the right match. You should identify your lifestyle and spending behaviour to make the most out of a credit card. For instance, if you are someone who frequently shops online, then having a card like Cashback SBI Card can help you maximize your benefits as it offers higher cashback on online transactions. On the other hand, if you are looking for an option to save on your utility bill payments, you can opt for Axis Ace Credit Card. The best credit card for you would be one that fulfills your core need.
You should analyze what type of cashback you need. Some cards offer similar cashback across all categories, whereas, some cards offer higher cashback on select purchases. To decide which card can help you boost your savings, you must identify your requirements and make an informed decision.
Choose between co-branded or generic card
You should also see whether you want a co-branded credit card or a card that offers benefits without any merchant restrictions. While the latter would offer similar benefits across all categories and brands, a co-branded credit card would offer higher cashback on the partnered brand. You should choose a co-branded credit card only if you are a loyal customer of the partnered brand. For instance, if you prefer Amazon, then you can opt for Amazon Pay ICICI Credit Card. This card offers higher cashback on your Amazon transactions and lower cashback on your transactions at other brands.
If you do not have any brand preference and you want to avail similar cashback across multiple brands, you can opt for generic cards like HDFC Millennia or Cashback SBI Card, as these cards offer similar cashback across multiple brands. Therefore, identifying whether you can stick to a brand for a longer period can help you maximize your savings.
Consider annual fee and other charges
Before applying for a credit card, you should understand how much you are willing to pay for it. Most of the cards come with the joining or annual fee. However, some cards come with no joining or annual fees, but such cards might not reward you with cashback as generous as one with an annual fee.
Most of the credit cards compensate for the joining or annual fee by providing benefits worth the fees. Some cards also offer annual fee waiver on achieving the certain spending milestone. So, if you are keeping an eye on a credit card, you should analyze whether the benefits offered by that card are worth the annual fee or not.
Compare multiple options
When it comes to credit cards, the attractive offers provided by card issuers may entice users. However, to make an informed decision, it is necessary to compare cards from multiple providers. There are chances that another card provider is offering better benefits at a similar annual fee. For example, if you frequently make online transactions at Swiggy, Myntra, and Flipkart, then you can maximize your savings by opting for HDFC Millennia Credit Card as it offers highest cashback on the given brands.
It is important to compare multiple options in order to make sure that you are getting the right deal at a reasonable price. Based on the credit card comparison, you should shortlist a few credit cards. This will narrow down your search for the right card. After shortlisting the cards, you should pick one that offers you the highest overall value.
Evaluate additional benefits
When selecting a credit card, additional benefits like welcome or renewal offer is what people usually miss. The best credit card not only offers decent cashback on your purchases but also rewards you with welcome or renewal benefits worth the joining or renewal fee. Some cards offer additional cashback on your first transaction or bonus cashback when renew your credit card. Besides cashback, credit cards also reward you with complimentary memberships, additional discounts, travel benefits and much more.
Although these benefits may not be as important as the core cashback feature, they still hold good value and could help you save more. Hence, it is important to evaluate the overall value of your credit card before opting for one.