Cash Back Rewards Credit Card

This one is for all those people who dread a credit card. People who are generally not very happy about the problems associated with a credit card generally should get aware of the ‘Cash Back’ rewards that most of the credit cards are providing now.

You thought shopping only meant spending money? Well, with more and more players in the credit card market, the competition to lure the customers is only growing intense. Credit Card companies keep coming up with new and innovative ideas to get a one up with them. Rewarding the customers for the usage of their card is one such tactic that keeps both the parties happy.

What is a cash back credit card?

The credit card companies give an incentive to the customers for spending more on their card with a cash return assurance. This cash return is normally a fixed percentage of the total purchase made and is credited to your card. The purchases that are rewarded with cash back are the ones made in one billing cycle.

How does it Work?

The Cash Back Reward program on a card works on various conditions. You might require having a total balance due equal to or more than a fixed amount. The cash back you get also can depend on the kind of purchase you make. Most of the credit cards give a maximum return of up to 5% on your purchases however it may even be less for certain kinds of purchases like groceries etc. the amount that you get as a cash return is credited to your card and reduces your total balance. Some select cards may even give you a much higher cash return on different conditions.

What to Look for in Cash Back Card?

There are a few things that you need to look for while choosing a cash back credit card. First of all check the application, processing and annual fees on it. Then find out other conditions like minimum balanced required and the amount of purchase that you need to make in order to get a return. It should not be so that you go through a lot of fees and charges just to realize later that you would not even be making as many purchases.

Also check if you do make the kind of purchases it requires getting the maximum cash back. For instance, a card might be giving you high cash back on purchase of jewelry but you might not want to buy jewelry in any near future. In such a case, it would not be worth going through unnecessary charges and get something you might not use.

Good to Know

You should also know that you do not get a cash return on balance transfers, accumulated balance due to late fees and finance chares and also cash withdrawals. In most cases, returned merchandises and fraudulent transactions also do not earn cash back rewards. The only thing you should keep in mind however is that you must read the terms and conditions very well before applying for a cash back card. If you are the kind of consumer who uses the credit card more often and satisfies all the conditions then, a free lunch is always a good thing!

Kotak Credit Cards

With the advent of plastic money sure you are enjoying the power to possess different goods and services before even making payments. But the question here is, are u really enjoying your credit worthiness or actually paying more on the name of free credit? You may call it a privilege but it’s all a money making business so if you are not smart enough using your credit cards you may end a being ripped of by banks. Following are some considerations you should make before buying and while using a credit card.

Brand:
Your credit card brand decides the acceptance of your card around the globe. Some of the popular brands are Master, Visa, Visa Electron, American express, Cirrus, Maestro etc. Master and Visa cards are most widely accepted card brands. You should get a card with these holograms on otherwise you would keep searching ATMS and merchants accepting your card.

Interest rates:
Reviewing and comparing the interest rates is the preliminary thing that has to be done. It is usually seen that credit cards giving you offers like merchants discount, petrol surcharge waiver, gift voucher etc. usually have a higher rate of interest. As a customer you should purely focus on getting the lowest interest rate instead of being carried away by the rewards and the gifts. For example ICICI bank and SBI charge no joining fee and no annual fee but their interest rates are as high as 45.09% and 44.25% respectively. On the other hand HDFC charges Rs 300 as joining fee and 700 as an annual fee on their silver card but it has a low interest rate of 41.75% both in the case of credit and cash withdrawal.

Maximum Credit Free period:

If you really want to enjoy the free ride, you should search for a credit card with the above feature and the one that provides more stretch of time. Most cards provide you 48 to 50 days as grace period.

Revolving Credit and Balance Transfer facility:
It is not just enough to have free credit period but also flexible repayment option. So, you stay easy even after your deadline is gone. In the case of the credit cards with no extended credit facility you have to pay interest on the whole amount from the day of transaction, if you fail to pay your dues on time, but in the case of revolving credit you can pay a part your dues (Min 5% of the principle amount) and then pay interest only on the amount outstanding from the day of your deadline. Cards like HSBC also provide you the option of paying your outstandings at predefined EMIs.