The rationale why there are vast categories of credit cards available is the fact that different individuals have different needs and expectations from their cards. Two of the most popular categories of Credit cards are Travel credit cards and cashback credit cards. Both have unique sets of utilities and satiate the need of distinct customers.
To determine which one is the best among travel vs cash back credit cards we need to understand their meanings first and then we can walk towards the comparison of their pros and cons:
Meaning:
What is a Travel Credit Card?
A travel credit card is one of the many categories of credit cards provided by financial institutions. They provide accelerated rewards and perks, specifically directed towards more savings on your travels like cheap flight tickets, discounted hotel stays, food discounts, etc. Following are some of the top travel credit cards that will get you exciting travel perks & privileges:
- HDFC 6E Rewards
- SBI Card ELITE
- MakeMyTrip ICICI Bank Signature Credit Card
- HDFC Bank Diners Club Privilege
What is a cashback credit card?
As the name suggests, a cashback credit card is a type of card that provides a certain amount of cash back on the total amount one pays while making any purchases with the card. There are different types of cashback credit cards available like flat rate, rotating cashback, etc. Below mentioned are some of the best cashback credit cards available in the Indian market:
- HSBC Cashback Credit Card
- Citibank Cashback Credit Card
- HDFC Millennia Credit Card
- HDFC Moneyback Plus Credit Card
Pros and Cons:
Travel Credit Cards:
Pros:
- Complimentary airport and Railway Lounge access.
- Travel insurance like lost baggage insurance, air accident death coverage, Overseas hospitalization coverage, theft insurance, etc.
- Exciting reward points that can be redeemed for discounted hotel stays, dining discounts, cheap air tickets, etc.
- Higher savings on travels.
- Accelerated reward points on travel-related expenses.
- Faster baggage, priority check-in, and complimentary meals at Airport.
- Exclusive concierge services.
Cons:
- Some travel credit cards have an expiration date for their reward points and Air miles.
- Travel-specific rewards only.
- Travel credit cards can be costly.
- They do not cover all the travel expenses.
Cashback Credit Cards:
Pros:
- Cashback credit cards provide reward points that can be converted into real money.
- Cashback credit cards are useful in several categories like travel, lifestyle, entertainment, etc.
- A lot of cashback credit cards have no joining or annual fee.
- There are different types of cashback credit cards that one can choose from according to their needs and preferences.
- Cashback points hardly expire.
- Some cashback credit cards may provide 2X reward points on specific categories.
- You may get cashback bonus points on signing up for the card.
Cons:
- Cashback can only be redeemed after reaching a certain amount.
- Some of the best cashback credit cards have a high joining or annual fee.
- To ensure the return on the card, it can get a little confusing to calculate the amount of cashback received in a year vs the cost of the card.
- Some cashback credit cards have a cap on the amount a consumer can get back per year.
After evaluating the pros and cons of both travel and cashback credit cards we can see that both of these cards are best for different people having different needs.
To make sure which one is best for you, take time to understand your spending. You can do so by evaluating your credit card statement, past bank statements, or even your spending receipts.
Additional Reading - Best Credit Card: What to look out for?
See a trader or an investor is always busy in diverse business plans and in a race to get some profit from a market or a business project.
It’s easy to handle your business but it’s really hard to manage your banking with best offers and perks.
Although the banking sector in UAE is always ready to attract the attention of customers through easy deals and packages it depends on a certain customer or account holder.
I can assume that all of the traders and big investors use such kind of facilities but they are unaware of one perspective which is about perks and benefits on that specific card.
I know the high net worth individuals and businessperson don’t bother too much about the perks on a credit card but it can save a lot if you give little attention.
Like your other investment plans, there is a need to figure out how much money you can save through your best credit card.
