What Are The Pros And Cons Of Cashback Credit Cards?

When a cashback credit card is used, a refund is provided to the customer on spending on the products or services. This is one of the reasons that cashback credit cards have become a popular payment mode among people who shop online and offline. Cashback is when you get a refund of a fixed amount depending on the offer you select while using your cashback credit card to pay your bills. Certain banks offer a flat percentage in return, while few banks provide a higher cashback percentage on your purchase. In straightforward terms, cashback is a way to earn some money already spent by you. You can even decide on a credit card that allows you to win reward points in its place of cashback. 

The best free credit cards in India are clubbed with benefits as well as drawbacks. Choose a card that might offer you better rewards or save you more money based on your spending.

One of the vital positive sides of cashback credit cards is ease, cutback in expenses and credit-building, with the negative aspect being overspending and affecting your credit standing. The main pros and cons of cashback credit cards are similar to the advantages and disadvantages of any normal credit card.

For most people, overindulging every once in a while is good enough. It’s acceptable to delight yourself! Sometimes little extra expenses won’t harm, but do not let it become a practice that becomes difficult to manage and could lead to major financial nuisance. Counting on the severity of a splurge and the present financial situation, recuperating would not be easy. Carefully consider whether you can afford a splurge or not on every purchase you make.

Indeed, even before you apply for the best free credit card in India, think about these pros and cons.

Why should one choose a cashback credit card?


  • They’re easy to use
  • Cashback credit cards are the most uncomplicated type of credit card
  • These cashback credit cards are available to all people.
  • You get paid back by using the card. For example, for every 1000 rupees you spend, you get 15 rupees as a cashback credit card which means a return of 1.5 per cent back.
  • They have no annual fees.
  • It makes certain that when it comes to building your credit score, you don’t have to think of cancelling the cashback credit card. 
  • You get sign-up bonuses
  • Few cashback credit cards in India motivate you to spend more to cover your purchases and save money. 
  • The incentives that are extended could be in the form of longer absolute warranties, return guarantees, mobile phones safety, and more. 
  • The annual percentage rate (APR) is nil if you pay your balance in full each month by the due date.


  • There are several downsides connected with cashback credit cards.
  • Some of the best cashback credit cards in India have annual fees 
  • Limited total value compared to travel rewards
  • Potential for earning caps and enrolment requirements with bonus rewards categories
  • High regular APRs are the norm with rewards cards
  • Some cashback rewards expire if you don’t use the credit card for a certain time.
  • Travel rewards are more beneficial than cashback rewards if you redeem them for travel. 
  • Cashback credit cards; charge a three percent fee on your purchases made overseas. 
  • If you don’t pay the balance amount outstanding in your name in full each month, you are liable to forego rewards.
  • Several cashback credit cards allow you to accumulate rewards without any limits, while others cap the amount of cashback you can receive. 

Some of the cashback credit cards are:-

  1. Bajaj Finserv RBL Bank Platinum ShopDaily SuperCard 

The Bajaj Finserv RBL Bank Platinum ShopDaily SuperCard is a credit card that’s rightly matched for the daily shopper. You get cashbacks on grocery, travel and fuel purchases, making every transaction a flawless experience. Besides shopping prerequisite, it as well helps you in times of crisis. You can withdraw from any ATM and pay no interest for up to 50 days.

  • HDFC Bank Millennia Credit Card

Cashback on HDFC Bank Millennia Credit Card is given in the form of Money Points. The value of redemption is at the rate of 1 MoneyPoint is equal to Rs1. The minimum MoneyPoint balance required for redemption is 2500 MoneyPoints. The special feature of this card is that the accumulated MoneyPoints can redeem against travel benefits like Flight & Hotel bookings. However, unredeemed MoneyPoints lapse within 1 year of accumulation.

  • Standard Chartered Super Value Titanium credit card

Owning a Standard Chartered Super Value Titanium credit card gets you 100% one-time cashback of up to Rs.1,500 on fuel spends within the first 90 days of card issuance as a welcome bonus. There is 5% cashback on utility bills with a minimum transaction amount of Rs. 750, with a maximum cashback of Rs. 100 per month. Your phone Bills: attracts 5% cashback. There is a 5% cashback on fuel spending, up to Rs. 200 per month. All transaction of INR 2,000 or below is eligible for cashback. You are rewarded with one point for every Rs.150 when you use your credit card for all other expenses.

  • Bajaj Finserv RBL Bank Value Plus SuperCard 

The powerful Bajaj Finserv RBL Bank Value Plus SuperCard has the power of 4 cards in 1. You can use it for all your daily needs and enjoy a range of benefits whenever you transact. This card offers a wide range of cashback offers the benefit of a fuel surcharge waiver of up to Rs. 100 a month. It comes with a host of other features, such as interest free-money withdrawal and an easy EMI conversion facility. You get rewarded with a cashback offer of Rs. 1,000 on spending of Rs. 1 lakh. The reward points can be redeemed at Flipkart, Shoppers Stop, MakeMyTrip etc.


At the first look, cashback credit cards may appear as bothersome as they are beneficial. However, before you decide to sign up for a cashback credit card application, make sure you have the self-discipline to earn cashback on your spending without increasing your debt. The criteria have to be to make the most of the pros of a cashback credit card and lessen the cons from the perspective of your practices and liking. 

 Using a credit card can be unbelievably convenient, but it can also lead to financial difficulties for people who have trouble managing their expenses.

Paying interest on past dues can check the general worth of cashback income swiftly. Consider the cashback credit cards’ reward plans, bonuses, and advantages. With an adequate investigation, you’ll observe a card that accommodates your spending style and rewards liking.

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