Cashback vs Reward Points: How to Choose the Best Credit Card for Your Needs

Wednesday, 22 November 2023 (13:27 IST)
Credit cards are not just a convenient way to pay for your purchases, but also a smart way to earn rewards and save money. However, not all credit cards are created equal. Depending on your spending habits and preferences, you may benefit more from a best cashback credit card or a best credit card for reward points. In this article, we will explain the difference between cashback and reward points, their benefits and drawbacks, and how to choose the best credit card for your needs. We will also list the top 3 credit cards that offer great cashback offers and reward points, available on Bajaj Markets.

What are Cashback Credit Cards?

Cashback credit cards are cards that give you a percentage of your spending back as cash rewards. The cashback rate can vary depending on the card, the category of spending, and the amount of spending. For example, some cards may offer a flat-rate cashback of 1.5% on all purchases, while others may offer higher cashback rates on specific categories such as groceries, dining, or travel. Some cards may also have tiered or bonus cashback rates based on your spending level or frequency.

The cashback rewards can be redeemed in various ways, such as statement credits, bank transfers, gift cards, or charitable donations. Some cards may also allow you to use your cashback rewards to pay for purchases on partner websites or apps.

Benefits of Cashback Credit Cards

Drawbacks of Cashback Credit Cards

What are Reward Point Credit Cards?

Reward point credit cards are cards that give you points for every rupee you spend on your purchases. The points can be redeemed for various rewards such as travel, merchandise, vouchers, or experiences. The value of each point can vary depending on the card, the redemption option, and the availability of the reward.

There are different types of reward points credit cards, such as co-branded cards, airline cards, hotel cards, or general travel cards. Co-branded cards are affiliated with a specific brand or retailer and offer rewards and benefits related to that partner. Airline cards and hotel cards are linked to a specific airline or hotel loyalty program and allow you to earn and redeem points within that program. General travel cards are not tied to any specific partner and offer more flexibility and variety in earning and redeeming points.

Benefits of Reward Points Credit Cards

Drawbacks of Reward Points Credit Cards

How to Choose the Best Credit Card for Your Needs

There is no one-size-fits-all answer to this question, as different credit cards suit different people and situations. However, here are some factors to consider when choosing between a cashback credit card and a reward points credit card:

Based on these factors, you can narrow down your choices and compare different credit cards based on their features, benefits, fees, and reviews. You can also use online tools such as calculators, simulators, or comparison websites to help you find the best credit card for your needs.

Some of the Credit Cards that Offer Great Cashback Offers and Reward Points on Bajaj Markets

Bajaj Markets is a one-stop solution for instant loans, insurance, credit cards, and investments. You can also check your CIBIL score for free, track expenses, and calculate EMIs with their app. On Bajaj Markets, you can find different types of credit cards from partner issuers such as Axis Bank, RBL Bank, SBI Card, ICICI Bank, and DBS Bank. Here are some of the best cashback credit cards and reward points credit cards that are available on Bajaj Markets:

Bajaj Finserv RBL Bank Platinum Choice SuperCard

5% cashback on down payments made at Bajaj Finserv partner stores
2.5% cashback on grocery spending
2.5% cashback on utility bill payments
2.5% cashback on movie tickets
1% cashback on all other spends
Welcome bonus of 10,000 reward points
Annual fee of Rs. 999

Axis Bank My Zone Credit Card

5% cashback on grocery spending (up to Rs. 250 per month)
2% cashback on utility bill payments
1% cashback on all other spends
Welcome bonus of 5,000 reward points
Annual fee of Rs. 500


5% cashback on online shopping
2% cashback on grocery spending
1% cashback on all other spends
Welcome bonus of 4,000 reward points
Annual fee of Rs. 2999

In conclusion, both Cashback and Rewards Credit Cards offer unique benefits, and the right choice depends on your individual needs and preferences. By carefully considering your spending habits and goals, you can select the credit card that maximises your earnings while you spend.

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