Credit cards are one of the most convenient products provided by banks today. They are convenient and eliminate the need for us to carry cash all the time.
With time, credit cards have evolved and now there are multiple types of credit cards that not only provide you with the convenience but also additional benefits for using them. Therefore having the right credit card for you is really important if you want to avail all the benefits that come with the credit card.
We at mymoneykarma.com believe that the first step to getting a good credit card is knowing what does each card type mean. In this blog, we will demystify cash back cards.
Even though there are many varieties of a credit card, one of the most beneficial is the cash back card. The significance is simple enough to understand. A percentage of a customer’s expenditure is provided as a cash back at the end of every month or once a minimum cash back is reached. So, whether you pay a phone bill, electricity bill or just use your card at any merchant, there is a minimum percentage of the expense which would be credited back to your card. Different credit cards have varying percentages of cash back.
In times of high inflation, even little bills matter a lot. Hence, if your bank cashback card offers 5% cash back on utility bills, you can get Rs 100 back on a bill of Rs 2000. It may sound trivial but a few such bills every month added over a year’s time can result in precious savings which you can conveniently utilize for investment or just keep as extra cash in your bank account.
However, some banks do put a cap on the amount of cash back that can be provided while others charge some annual fee. Customers should always check both these things before they opt for a specific card. The mere prospect of savings on expenditure is truly exciting therefore mymoneykarma.com helps you navigate the complex terms of the various cashback cards and provide custom recommendations for the best cashback cards based on your spend pattern.
Go ahead and use any of these credit cards and avail the benefits of both conveniences along with additional freebies that come with the use of the plastic money.