Cashback vs Reward Points: Which Credit Card Benifits is Better?

Cashback vs Reward Points: Which Credit Card Benefit is Better?

Choosing the right credit card benefit can be confusing, especially when you're deciding between cashback and reward points. Both offer value in different ways, but which one truly suits your lifestyle? Let's explore the pros and cons of each to help you make a smarter financial decision.

💳 What Are Cashback Credit Cards?

Cashback credit cards give you a percentage of your spending back as actual money. For example, if you earn 2% cashback on groceries and spend ₹5,000, you get ₹100 back in your account or as a statement credit.

✅ Pros of Cashback Cards:

• Simple and easy to understand
• Instant savings on everyday purchases
• No need to track or convert points

⚠️ Cons of Cashback Cards:

• Limited categories (e.g., only groceries or fuel)
• Caps on maximum cashback you can earn

🎁 What Are Reward Points Credit Cards?

Reward points cards offer points for every rupee you spend. These points can be redeemed for shopping vouchers, travel bookings, electronics, or even cashback in some cases.

✅ Pros of Reward Points Cards:

• High value on travel or premium redemptions
• Often come with exclusive partner offers
• Good for frequent flyers or brand loyalists

⚠️ Cons of Reward Points Cards:

• Redemption process can be complicated
• Points may expire if not used in time
• Value depends on how you redeem them

🆚 Cashback vs Reward Points: A Quick Comparison

Feature	Cashback	Reward Points
Ease of Use	Very Easy	Moderate
Flexibility	Can be used for bill payments or savings	Limited to catalog or partners
Best For	Everyday spenders	Travelers, premium users
Expiry	Usually no expiry	Points may expire

💡 Which One Should You Choose?

Go for Cashback if:

• You want simple, real savings on daily purchases
• You prefer easy-to-track benefits

Go for Reward Points if:

• You travel frequently or shop from partner brands
• You enjoy maximizing value through redemptions

📝 Final Verdict

Both cashback and reward points have their advantages. If you're someone who values straightforward savings, cashback is ideal. If you're okay with a little effort and love premium experiences, reward points can be more rewarding. Choose based on your spending style and financial goals.

💬 Got Questions?

Let us know in the comments which benefit you prefer and why. Your opinion might help others decide better!