To avail the benefits of credit card, it is very important to first select the right card. Keeping in mind your needs and priorities, choose such credit card where you make maximum payments.
Cashback in credit cards is the most popular reason why so many people prefer to make online and offline purchases using credit cards. Credit cards offer cashback to spend on groceries, food, lifestyle, entertainment, electronics and bill payments. When using a credit card, you get a certain percentage of cashback depending on the offer you choose. If you also want to take advantage of the cashback available on credit card, then know this useful thing.
How does cashback work?
Generally, when you are eligible for cashback on your credit card when you shop on e-commerce or any online retailer, you get up to 1% of your money back. Cashback is a deal between a credit card company and an online retailer. For every purchase, the retailer is required to return a certain percentage of the amount to the credit card company. Then the bank shares a part of this earning with the customer.
How to select the right cashback card
1. Choose the right credit card
To avail the benefits of this card, it is very important to first select the right card. You have to select the card based on the way you spend money. You will get more value back along with cashback on every purchase on every card type. Before buying a card, know where you are paying the most. For example, if you spend a lot on travelling, then choose a card which gives the highest offers and cashback on travelling.
2. Redeem on time
The credit card gives cashback or coupons on every payment depending on the offer. Some offers are for limited period. Therefore, check the credit card statement from time to time. Redeem your cashback to get the most out of the card.
3. Stay updated
Keep track of updates on your credit card offers. They often introduce new offers, promotions or cashbacks that you can benefit from. Keep an eye on your bank’s credit card website or app to stay updated and avail your cashback effectively.
4. Keep track of rewards or cashback
Whenever you use the card, keep in mind that credit card companies do not give the same offer on every purchase. Let’s say, some cards may offer 5% cashback on groceries but only 1% on fuel or food. In such a situation, plan your purchases according to these categories to get maximum benefits.
