There are several credit cards in the market that cater to different categories of spenders, such as frequent shoppers and travelers. The most important aspect of using a credit card smartly is getting a card that suits your spending pattern and lifestyle. So, if you shop online regularly, look at cards with good online shopping benefits such as cashbacks. Now, cashback on spends is one of the most popular and sought-after features of credit cards. This Diwali, there are several attractive cashback schemes on credit cards while purchasing consumer electronics and fast-moving consumer goods (FMCGs).
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Cashback on credit cards are beneficial to those who shop frequently via online platforms. Regular cashback can lead to significant savings. Here are five credit cards with the best cashback features, as per research and information compiled by Paisabazaar.
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Amazon Pay ICICI Credit Card offers 5 percent cashback on Amazon for PRIME members, 3 percent cashback on Amazon for non-PRIME Members, 2 percent cashback on 100-plus Amazon partner merchants and 1 percent cashback on other transactions. This is a lifetime free credit card.
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Axis Bank Ace Credit Card offers 5 percent cashback on Google Pay recharges and bill payments, 5 per cent cashback on BigBasket and Grofers, 4 percent on Swiggy, Zomato and Ola, 2 percent flat cashback on all other spends. The annual fee is Rs 499 on this credit card.
Flipkart Axis Bank Credit Card offers 5 percent cashback on Flipkart, Myntra and 2GUD, 4 percent cashback at select merchants and 1.5 percent cashback across other categories. The annual fee is Rs 500 on this credit card.
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HSBC Cashback Credit Card offers 1.5 percent cashback on all online spending (excluding wallet reloads) and 1 percent cashback on other spends. You can earn cashback on EMI transactions at listed merchants. The annual fee is Rs 750 on this credit card.
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HDFC Millenia Credit Card offers 5 percent cashback on Amazon and Flipkart, 5 per cent cashback on Flight & Hotel bookings via PayZapp and SmartBuy, 1 percent cashback on offline spends and wallet reload. The annual fee is Rs 1,000 on this credit card.
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Have a disciplined approach to your credit behaviour. Once you get a credit card, it is critical that you use it smartly and responsibly. Since credit cards offer a significant interest-free period, there may be a tendency to overspend while shopping. If you spend more than you can repay and cannot pay your credit card bill timely, you will incur hefty interest charges ranging from 28-49 percent p.a. along with late payment fees.
To shortlist the top five cashback credit cards Paisabazaar identified all the banks offering the cashback scheme on credit cards. Then compared the cards and checked the value proposition that it holds for the customers depending on the cashback offers they have across categories. Then choose the cards extending best offers to the customers. The cashback credit cards are arranged according to the least annual fees.
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
