There are mainly 2 types of credit card rewards, one which gives you the reward points whereas other which gives you the cashback. Actually you get more reward points for some of the premium cards, like Amex Platinum Travel Card gives around 8% reward points, Infinia gives around 9% reward points when used with SmartBuy. Whereas some of the cashback cards like HSBC Live+ gives around 10% cashback but only in case of groceries and the SBI cashback card gives around 5% cashback.
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So if you see the reward points, they usually give higher points than the cashback. But there is a catch, when you redeem that reward points you usually have to spend some redemption fee, I.e. most likely Rs 99+GST. And the reward points are basically gives more value of money when you use it for some category like Flights or eating out.
But in the cashback it is added to the statement. For example, if you get 5% cashback and you have spent around Rs 1K, the you will get Rs 50 which will be added to your Credit Card. So next time if you spend Rs 50 more from your credit card. There is no redemption fee, and since it is already added to your statement you don't have to worry about the maximum points from your reward points.
Now when you want reward points card and when you need cashback cards. For example, if you want more money in your pocket always go for cashback cards. Also when you want simple reward But if you want to get the best out of your card and if you don't mind spending more time to find out how to maximize reward points then go for reward points. Which includes, getting Flights, going for lunch or getting the 5 star hotels for your travelling.
For me I have both, rewards card as well as the cashback card. I will mix and match these cards to get the best reward points for all my spending.
