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.

SBI Signature Credit Card

SBI Signature Credit Card is a must-have for every shopaholic as this card allows them to earn money on their shopping sprees. You get the following benefits with the card.

1. You get 24×7 concierge anywhere in the world with this card and 75% discounts in major hotel chains around the world.

2. You get vouchers worth Rs. 5,000 along with welcome gifts from Bata, Yatra.com, and many more websites with this card. You are awarded two points for every transaction of Rs. 100 that you can redeem later.

3. You also get 10,000 reward points if you spend Rs. 4 Lakhs and above and 20,000 reward points if you spend Rs. 5 Lakhs and above.

4. You are also eligible for getting five times more reward points when you spend money on groceries and in certain supermarkets.

Standard Chartered Platinum Credit Card

This credit card is designed for working people and offers a lot of travel benefits and points. The card is suitable for online shoppers as well. We have mentioned a few of the key benefits below.

1) The card offers 20% cashback on Uber rides.

2) You get a reward point for a transaction of Rs. 150. You earn 1,000 points on purchases within two months of getting this card. If you register for online banking, you instantly get 500 points.

3) You also get five reward points for each Rs. 150 spent on fuel and dining.

American Express Payback Credit Card

American Express Payback Credit Card has tied up with some of the best grocery and departmental stores in India to give you an array of benefits and savings every time you shop at these stores. You also have exclusive discounts on fuel, dining, online shopping, movie tickets, and so on. Some of the key benefits include:

1) On every Rs. 100 you spend on utilities, you get three reward points.

2) With the DineOut app, you get 5-30% cash back on significant restaurant chains around the country.

3) Joining vouchers worth Rs. 3,000.

ICICI Instant Platinum Credit Card

Customers with an account with ICICI Bank can easily access this card. It includes benefits as given below.

1) 5% fuel surcharge waiver on spending a minimum of Rs. 4,000 at any of the HPCL petrol pumps.

2) 15% off on dining in 800 major restaurants in ten cities in the country.

3) Two reward points on every transaction of Rs. 100 on the card.

4) Rs. 200 off on movie tickets every month through the website BookMyShow.

Citibank Cashback Credit Card

This cash back credit card is perfect for people who do a lot of transactions online. It gives instant cashbacks and attractive deals very frequently. But it might be a little difficult for you to procure this card if you don't have a very good credit history. You can expect to get the following benefits with the card.

1) You earn 5% cashback every time you make an online purchase, pay your bills online, and buy tickets through the BookMyShow website. You get a guaranteed 0.5% cashback on the rest of your purchases.

2) The card has a very nominal annual fee and enables contactless payments.

HDFC Bank Moneyback Credit Card

This credit card is one of the premium cash back cards in the market. The perfect card for the shopaholic, this card gives you a lot of cash back if you love online shopping and offline shopping. The promising features of the card are provided below.

1) 2X reward points every time you purchase something online.

2) 2X reward points on every Rs. 150 you spend.

3) Savings on fuel recharges up to Rs. 1800 per year.

4) Your annual fee for the card is waived off if you pay Rs. 10,000 within the first 90 days of receiving the card.

5) 100 points earned by the card are worth Rs. 30.

Citibank Premier Miles Card

This card is specially designed for those infected with wanderlust. If you are an avid traveler, you will love this cash back card. It gives you cash back on the purchases you made abroad and many other exciting features such as:

1) You get 10,000 air miles as soon as you activate your card.

2) Exclusive lounge access in all airport lounges around the world.

3) On every Rs.100 spent on airline transactions, you get ten air miles free of cost, which can be redeemed for domestic and international airline tickets.

Conclusion

Picking the best cash back credit card for your needs requires an introspection into your spending habits and earnings. Keeping the card fees in mind is essential—if you are choosing a card with an annual fee, make sure to do the math to ensure that you’re earning enough cash back to cover the cost.

If you can pay off your credit card balance in full and on time each month to avoid mounting interests, cash back credit cards can be a great addition to your wallet. Check your credit report regularly to stay aware of your credit standing as well.