Best Cashback Credit Card in India - Cash Back Rewards Credit Cards

Many of us use credit cards extensively in our personal and professional lives. What if we were to tell you that you could earn money every time you swipe your card for a purchase? With cash back credit cards, it's possible to earn money every time you make a purchase.

The concept of cash back credit cards is relatively new in India. mymoneykarma demystifies these type of credit cards so that you can avail of the cash back credit card features and benefits. mymoneykarma also brings you a list of cash back credit cards that offer the most benefits. Let's get started.

What Are Cash Back Credit Cards?

These are particular types of credit cards that pay you back a certain percentage of the amount you spend for every transaction in the form of rebates or points that you can exchange for gifts. The usual rebate rate is 1-2% of the transactional amount for most credit card companies. More than half of the credit companies offer cash back credit cards in India.

Types of Cash Back Credit Cards

Different types of cash back cards come with various benefits that we’ll cover in this article. A good cash back card can help you cover expenses, build credit, or even grow your savings.

Before picking a card and starting the application process, you should have a good idea of your spending habits. Cash back cards are often designed with certain types of spenders in mind. The cash back card will work best for you if its reward structure fits your buying habits.

There are three common types of cash back credit cards.

1. Flat rate: Some cash back rewards cards offer a flat rate of cash back on every eligible purchase. You don’t have to worry about which card to use at which store because you get the same rewards rate everywhere.
2. Bonus categories: Some cards have cash back offers on specific bonus categories. Bonus-category cards can help you earn more than many flat-rate cards as long as you keep track of where to use the card for the best rewards.
3. Rotating categories: With these cards, you can earn much more, but it is on the cardholder to remember where to use which card for what business need.