If you are confused between cashback credit cards vs travel credit cards then you have reached the right article. In this article, we have covered all about cashback credit cards and travel credit cards along with their pros and cons so that can choose the right type of credit card for yourself. Without any further ado, let’s begin with the comparison between these two types of credit cards.

Travel Credit Card

What is a Travel Credit Card?

Travel credit cards are best suited for the ones who are frequent flyers and want to save costs on their travel expenditures. On a travel credit card, you get to earn travel points, Airmiles, Club Vistara points, and reward points depending on the type of rewards program of your credit card. Whenever you use your travel credit card to pay for your travel expenses you get to earn the rewards. You not only earn rewards on travel expenses but on other spending categories as well. Travel credit cards are further bifurcated into generic travel credit cards and co-branded travel credit cards.

Pros of Travel Credit Cards:

Here are the benefits that you can get with the travel credit cards are as follows:

  • You get to save on travel expenses.
  • You can enjoy other benefits like shopping and entertainment benefits.
  • You get to enjoy complimentary flight tickets, lounge access, spas, golf benefits, and so on.
  • These cards offer flexible rewards.

Cons of Travel Credit Cards:

Here are the reasons why you should avoid taking a travel credit card:

  • Co-branded travel credit cards limit your rewards.
  • The fees and hidden charges on travel credit cards with stronger benefits are high.
  • High chances of falling into a debt trap with these credit cards.

What is a Cashback Credit Card?

A cashback credit card is ideal for first-time credit card users. These are pocket-friendly credit cards and can also be lifetime-free credit cards. On a cashback credit card, you earn a percentage of cashback of the spending. Depending on the rewards program you can either earn cashback on all categories or only on specific categories. ICICI Amazon Pay Credit Card is the most popular lifetime free cashback credit card.

Pros of cashback credit cards:

Here are the reasons you can choose to go for a cashback credit card:

  • These are affordable credit cards.
  • Earned cashback on these credit cards is directly credited to the cardholder’s account.
  • Cashbacks on these credit cards never expire.
  • These are best for building a good credit score.
  • You do not have to worry about the redemption process.

Cons of cashback credit cards:

Here are the reasons why you should not go for a cashback credit card:

  • The features and benefits of these credit cards are limited.
  • Rewards are not flexible on these credit cards, you cannot convert the cashbacks into miles.
  • Can also lead to a debt trap if you do not use it wisely.

Bottom Line:

To summarise, you need to analyze your needs and spending habits so that you can choose a type of credit card that suits them. If you are a frequent flyer then you must go for a travel credit card if not then you should go for a cashback credit card. In order to maximize the benefits of your credit card, you need to use it wisely, keep the credit card dues clear and maintain a low credit utilization.

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