Why cashbacks are a better option than reward points in credit card space

Unused reward points come with the risk of getting lapsed if you don't redeem them

Most shoppers will use their cards to avail of the deals and discounts on offer this festival season. Credit cards reward users either via cashback or rewards points. Users need to understand the pros and cons of these two modes of rewarding customers. 

In cashback offers, as the name suggests, you get some cash back every time you use your card. Says Naveen Kukreja, chief executive officer and co-founder, Paisabazaar.com: “Cashback credit cards return a percentage of each card transaction back to the user. The cashback percentage varies across spend categories. For example, the Citi Cash Back Credit Card offers