Credit Card Reward Points vs Cashback: Which is More Valuable?

Posted on Tuesday, August 29th, 2023 | By IndusInd Bank

If you are a credit card user, you may be wondering which type of card offers more value for your money: a cashback card or a rewards card. Both types of cards have their own advantages and disadvantages, depending on your spending habits and preferences. In this blog post, we will compare the features and benefits of cashback and rewards cards, and help you decide which one suits you better. 

What are Cashback Cards? 

Cashback cards are credit cards that offer a fixed percentage of cash back on every purchase you make. The cashback amount is either credited to your account or deducted from your bill. Cashback cards are simple and easy to understand, as you know exactly how much money you are getting back for every transaction. 

Some of the benefits of cashback cards are: 

• There is no expiry date on the cashbacks and they are directly credited to your account 
• Many cashback credit cards offer sign-up bonuses when you meet the minimum spending requirements in the first few months. 

Some of the drawbacks of cashback cards are: 

• Cashback rates may vary depending on the category of spending, such as groceries, fuel, dining, etc. Some categories may offer higher cashback than others, or no cashback at all. 

• Cashback cards may have a cap on the maximum amount of cashback you can earn in a month or a year. 
• Cashback cards may not offer other perks such as travel insurance, lounge access, concierge service, etc. 

What are Rewards Cards? 

Rewards cards are credit cards that offer points that can be redeemed for various products and services, such as merchandise, flights, hotels, gift vouchers, etc. Rewards cards have different points structures and redemption options, depending on the card provider and the partner merchants. 

Some of the benefits of rewards cards are: 

• Rewards points can help you save money on your travel and lifestyle expenses, as you can get discounts or freebies on various bookings and purchases 
• Rewards points can also be transferred to other loyalty programs, such as airline miles or hotel reward points, to get more value out of them 
• Rewards cards may offer additional benefits such as travel insurance, lounge access, concierge service, etc. 

Some of the drawbacks of rewards cards are: 

• Rewards points may expire after a certain period of time or if you do not use your card regularly 

• Rewards points may have a lower value than cashback, depending on the redemption options and availability 

Which Card is More Valuable for You? 

The answer to this question depends on your personal preferences and spending patterns. Here are some factors to consider before choosing a card: 

• How much do you spend on your credit card every month? 

• What categories of spending do you use your credit card for? 
• How often do you travel or shop online? 
• Do you prefer cash or products/services as rewards? 
• Do you mind paying an annual fee or higher interest rates for extra benefits? 

Based on these factors, you can compare the features and benefits of different cashback and rewards cards available in the market and choose the one that offers the most value for your money. 

Why Choose IndusInd Bank Credit Cards? 

If you are looking for a credit card that offers the best rewards and benefits, IndusInd Bank has some of the best options for you. IndusInd Bank credit cards offer a flexible and rewarding program that allows you to earn reward points on all your purchases, and redeem them for cash credit or air miles, discount vouchers etc.  

IndusInd Bank credit cards also offer other features and benefits such as: 

• Welcome rewards – Most IndusInd Bank credit cards offer you exciting welcome offers, after your onboarding as a successful customer as a token of appreciation. To give you an idea, the IndusInd Bank EazyDiner Credit Card offers you 1-year EazyDiner Prime membership worth ₹2,395 for free. It enables you to enjoy an assured 25% off, up to 50% off, on premium restaurants & bars. 
   
• Milestone rewards – Some IndusInd Bank credit cards offer extra reward points when reaching a certain spend threshold or milestone. For example, the IndusInd Bank Club Vistara Explorer Credit Card offers you a business class ticket voucher on reaching a spending milestone for every ₹3 lakhs. 

• Reward points – Reward points that you earn with your IndusInd Bank Credit Cards never expire and you can redeem them for air miles, discount vouchers, cash credit etc. at any point in time. In fact, with the IndusInd Bank Platinum Aura Edge Credit Card, you can earn up to 8x reward points on select merchant categories. 
• Exclusive offers – IndusInd Bank credit cards also offer exclusive deals and discounts on various categories such as travel, dining, entertainment, shopping, etc. 

IndusInd Bank credit cards, with their features and benefits, truly give you a rewarding experience. Apply now for instant approval and enjoy the best of credit card rewards with IndusInd Bank credit cards. 

Apply Now 

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.