How to Use a Cashback Credit Card: Inflation has become the biggest concern for every household these days. Expenses on daily necessities are constantly increasing, whether it’s vegetables, groceries, electricity bills, or mobile recharges. In such a situation, the average person is always looking for ways to save a little money. This is where your cashback credit card can become a powerful tool, provided you use it wisely.
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Most people consider credit cards only as a means of borrowing, while in reality, a cashback card is a kind of smart discount tool. If used correctly, it can save you 5 to 10 percent on every expense, which adds up to a significant amount by the end of the month.
Choosing the right cashback card according to your spending habits is crucial
Many types of cashback credit cards are available in the market, but not every card is beneficial for everyone. Some people spend the most on groceries, while others spend more on online shopping. If you fulfill your daily needs from supermarkets, it would be wise to get a card that offers more cashback at grocery stores. Similarly, for those who shop more on online platforms, co-branded cards prove to be a better option. Fuel cashback cards are more beneficial for drivers, and dining special cards are better for those who enjoy eating out.
Understanding the merchant partner dynamics is essential
Every cashback card works in partnership with certain brands and apps. The bank offers more cashback on these partner merchants, while the return is lower on other expenses. If your card offers 10 percent cashback on a food delivery or online shopping platform, using those platforms can increase your savings. This saving may seem small, but by the end of the month, it can amount to thousands of rupees.
Don’t overlook utility bills and essential payments
Bills like electricity, water, mobile, DTH, and internet are expenses that have to be paid no matter what. Today, many cashback cards offer good returns on utility payments. If you pay these bills with a cashback card, you can save a significant amount of money over the year. These small savings add up to big benefits in the long run.
Cashback is more beneficial than reward points
Often, people get cards that offer reward points, but later find it difficult to redeem them. In contrast, cashback is directly adjusted to your card statement. The next bill comes with a reduced amount, and no separate process is required. This is why cards with real cashback are considered more useful.
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Use cashback cards wisely
A cashback credit card is not magic; it’s a reward for your spending habits. If you choose the right card according to your needs and combine offers effectively, you can get a hidden discount on every purchase. In this era of inflation, this is a smart way to spend and save at the same time. Just remember to use the card wisely so that you don’t accumulate debt.