23 May, 2025 | 17:28 IST
A credit card is a payment card issued by banks that lets you borrow money up to a set limit to make purchases. You repay the amount later – either in full or through monthly instalments with interest. Credit cards today do more than just enable spending. Banks offer them with reward points, cashback, travel perks and exclusive deals. The more you spend, the more you earn, through the reward programs designed to attract customers. If you don't use them wisely, then you could miss out on significant benefits.
Before we get into the strategies of using a credit card, let us understand how it works.
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Credit card cashback is a type of reward where you get back a small part of the money you spend. Many shops and websites offer cashback deals if you pay using a credit card. So, every time you swipe your card for eligible purchases, you earn something in return – like actual money, reward points, or a discount on your next bill.
For example, your credit card offers 5% cashback on online shopping. And if you buy items for Rs 5,000, you will get Rs 250 as a cashback. This can either be credited to your account or added as points that you can redeem later or use for vouchers.
The cashback, rewards and different types of perks entice users to spend extra on items. Though this isn’t how it exactly works. It is essential to keep your strategies in mind so that they align with where and how you spend.
Making payments through a credit card can seem exciting and rewarding, but it often comes with hidden fees such as annual charges, late payment penalties, high interest rates on unpaid balances and foreign transaction fees.
Moneycontrol has partnered with many top card issuers such as HDFC Bank, Axis Bank and IDFC First Bank to offer easy access to multiple credit cards. Based on your employment status and income you can choose from many credit cards with attractive discount and reward features.
1. Choose the right credit card: Not every credit card has the same cashback features. Select a credit card that fits your spending patterns to get the most out of your rewards. For example, some credit cards may offer benefits on grocery shopping, while some on movie ticket purchases or travelling.
2. Beware of the rewards limit: Every card has its own cashback limit based on categories or spending limits. Sometimes, you don't get the cashback once a certain limit is reached. For example, a card might give you 5% cashback on groceries, but the limit is only up to Rs 5,000 a month. So, after you have earned the maximum reward in one category, consider changing your spending to other categories to earn extra cashback. You can also use specific cards to earn rewards in particular categories.
3. Offers and schemes during festive seasons: Various credit cards send you promotional mail in your inbox to grab various credit card benefits. They also put up sales for their credit card users, especially during festive seasons, like Diwali and Holi. Other than this, you can also grab deals and earn maximum cashback on major sales events such as Amazon Great Indian Festival or Flipkart Big Billion Days.
4. Pay your credit card bills on time: It is essential to pay credit card bills on time to maintain a healthy credit score, avoid late payment fees and maintain good account history. Some cards offer additional cashback or bonus points if you pay bills regularly and on time. You can do this by setting up automatic payments or reminders so that your bills are cleared before the due date.
5. Use a co-branded card while shopping: Some platforms use co-branded credit cards, which are designed to offer exclusive cashback or reward points when you shop with a particular brand. These are directly adjusted in your credit card bill.
There are several apps that offer credit card cashback, including CRED, Paytm, PhonePe, Mobikwik and Google Pay. Some platforms offer coins which can be redeemed later, while some offer vouchers or scratch cards which can be used for shopping and recharges.
When used responsibly, credit cards may be a fantastic way to earn incentives and rewards. You may maximise the advantages by selecting the credit card that best suits your spending patterns. It's crucial to monitor your reward limits, make on-time bill payments, and utilise co-branded cards and special offers to grab credit card cashback offers.
If you are looking forward to credit cards with cashback benefits and discounts Moneycontrol could be your go to place. Moneycontrol has partnered with many top card issuers to offer access to multiple credit cards. The entire application process is 100% paperless. These cards come loaded with attractive credit card features.
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