Cashback or Travel Credit Card: Which is Better?

Best Buy Credit cards In India

The most common type of credit cards that are talked about is cashback credit cards and travel credit cards. Both types have their own significance. Identify your needs and spending habits and then accordingly apply for a credit card that suits you the best. Here is the comparison between these two types that you must know. Keep reading to kick start your research.

Click on the links to know about cashback or travel credit cards: https://www.click4r.com/posts/g/4527883/cashback-or-travel-credit-card-which-is-better

Cashback Credit Cards

Cashback credit cards are those that you earn rewards on your spending in the form of cashback. You earn a percentage of your spending back into your account. Currently, Amazon ICICI credit card is the talk of the town, it is a cashback credit card. Both prime and non-prime members get cashback benefits on shopping Amazon. Hereunder are the pros and cons of having a cashback credit card.

Pros of having a cashback credit card

• They are affordable and ideal for first-time credit card users.
• The cashbacks are directly credited to the credit cardholder’s account, so you do not have to worry about redeeming them.
• There is no expiry date on the cashbacks.
• You can easily build your credit score from the scratch with this credit card.

Cons of having a cashback credit card

• The rewards are not flexible, you cannot convert the cashback to Airmiles, gift vouchers, or e-vouchers. Etc.
• If the credit card is not used properly, then you can easily fall into the debt trap.
• It is not necessary that you earn reward points in each and every spending category.

Travel Credit Cards

Travel credit cards are those credit cards that let you earn travel points or Miles on your travel or on other spending. Travel rewards credit cards come in two variants generic travel credit cards and co-branded credit cards. Identify your needs and then choose the one which suits them the best. Here are the pros and cons of having a travel credit card.

Pros of having a travel credit card

• Travel credit cards offer you reward points and Miles on all your spending or on selected spending categories.
• The rewards are highly flexible and can be redeemed for any product or service that you wish to avail of.
• Most rewarding credit cards.
• You get to save money on your travel expenses.

Cons of having a travel credit card

• Travel credit cards can be a bit expensive as well so choose wisely.
• If not used wisely can also harm your credit score.
• The reward points or miles have an expiry date and they expire if you do not redeem them on or before the due date.