Cashback is a form of incentive offered by the credit card issuing bank to the cardholder where a small percentage of the total amount charged to the credit card (spend) is reimbursed. This amount will vary depending upon a number of factors including the total amount spent per billing cycle, the category in which the amount is spent, caps on cashback etc.

The cashback may be awarded either in the form of cash, check, or credited to the credit card account. Lets take a look at some reasons why you would require a cashback card and how one can benefit you:

cash back card

What cash rewards can I earn?

As the only type of cards that earn money for you, this card can help increase cashflow which can subsequently be used for personal expenses or to pay for other credit card expenses. You could also choose to save it. The portion that you get back is denoted in percentage points, for e.g. 8% cashback and will be

Can I spread the benefits of cashback earnings?

Cashback earning need not be restricted just to you. You can have supplementary cards issued for your family members and spends on these cards are also eligible for cashback earnings. Moreover, as spends on cashback earning categories increase, cashback rewards too get maximized.

Are reward points up for grabs?

Almost all, if not all, cashback cards also allow you to earn reward points for your spends, especially those spends in categories that do not earn cashback. You can collect these reward points and redeem them against a range of gifts or against card spends.

Is there more?

Certainly. In addition to cashback and reward points cashback cards also offer you additional perks and benefits. The Citibank DIVIDEND Card, for instance, provides you with a large selection of dining deals, hotel and travel benefits including complimentary insurance and a wide range of discounts on hotel bookings and air fares, shopping benefits etc. Choose a card that gives you privileges that best sync with your lifestyle needs.

How do I go about earning even more cashback?

  1. Pay your balances in full and don’t revolve credit. Your interest payments can easily wipe out the cashback earned over a period of time.
  2. Segregate your spends into categories, choose the biggest spend categories and go in for a cashback card that rewards your big spend categories.
  3. You’ve earned the maximum amount of cashback possible on your card but still have a significant sum left over in your big spend categories. If this is the case, its time you thought about getting another cashback card that rewards your big spend categories.