One way to increase your savings and get additional benefits is through credit card payment offers. With the help of a credit card, you can enjoy payment offers that range from discounts to reward points. Some cards also give you instant cashback when you transact.
To determine whether straightforward cashback or other offers are better for you, identify your spending habits. If you are a casual spender using the cards for daily expenses, cards offering more cashback are likely a better option. If you spend more in a specific category and have the bandwidth to redeem reward points, then offers can provide more value.
Understanding Credit Card Payment Offers
Card companies and banks provide a wide range of offers. These include reward points, flat discounts on your purchases, joining bonuses in terms of gift vouchers or points and more. Here’s in-depth information about each one of them.
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Reward Points
Whenever you make a payment through your card, you get points for every eligible transaction. You can collect these points and redeem them later. Redemption may be in the form of discounts on your next purchase, free merchandise or the freedom to pay your bills with points.
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Discount Offers
When you are shopping, and you see an immediate deduction in the price of a product, it is because of a discount. Credit cards provide discounts on select brands, helping you to buy a product more affordably as per collaborations with partners. These offers keep changing and are valid for a limited time.
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Travel Miles
If you are a frequent traveller, you can exchange points for air or travel miles. You can use them to book hotels and flight tickets and rent cars with ease.
Pros And Cons Of Credit Card Offers
While credit card offers seem to be very advantageous, they come with some cons.
Pros
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You get a variety of offers across different spending categories, from travel and shopping to dining and entertainment.
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You can get special deals for exclusive events, sales and more.
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You can enjoy saving more thanks to discounts and points.
Cons
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You must redeem the points and travel miles within a specific time, as they come with an expiration date.
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Offers come with restrictions on minimum spending and may not be available for every brand you like.
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You need to have a good understanding of the reward program of your card to make the most out of it.
How Is Cashback Different From Credit Card Offers?
Cashback is a much simpler reward that credit card issuers offer. It is a percentage of the amount you spend, which is returned to you after making a purchase using your card.
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For example, a card may offer you 1% cashback on all online purchases, 3% cashback on groceries and 3% on fuel.
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If you spend Rs.5000 on online purchases, you can get an instant cashback of Rs.50.
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If you spend Rs.1000 on groceries/fuel, you can get an instant cashback of Rs.30.
Cashback cards and offers also have some pros and cons.
Pros
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It is easy to calculate your savings with a cashback offer
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Cashback lowers your outstanding payment instantly.
Cons
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While cashback is simple to understand, it is limited to a specific amount.
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Cashback offers are valid only on specific spending categories.
Cashback Or Other Offers: Which Is Better?
Your shopping habits and financial goals will determine whether you should choose cashback credit cards or other cards with reward offers. Cashback provides simplicity and immediate benefits, making it great if you seek clear rewards.
Meanwhile, other cards may deliver more value, but may need strategic preparation. Understanding your spending habits and what you value most can allow you to choose the credit card that benefits you most.
If you are looking to get both offers and cashback, then the One Credit Card can be a great option. You can earn up to 5X reward points in the top two categories in which you spend every month. Also, reward points are automatically allocated for every transaction. Redeeming them is super easy on its full-stack mobile app.
In addition to rewards, cashbacks are available in a variety of categories, such as groceries, electronics, fuel and jewellery. The One Credit Card offers you some percentage as cashback when you redeem your reward points. It also allows you to take a credit card loan to address emergencies.
What’s more, the One Credit Card App shows you real-time offers using GPS and helps you to track your expenses. To make sure that you don’t overspend, you can set spending limits for every category too. Apply now without paying any joining fee or annual fee and shop your heart out.
