Credit Card Redemptions: Rewards or Cashback? Let's Talk About Your Preferences!

[helloworld]

Hey everyone!

With so many changes over the years, I thought it would be great to have a discussion on how we all prefer to redeem our credit card points. Are you more into cashback or still a fan of rewards? Let’s dig into how things have changed before and after COVID and help each other make the most of our cards.

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Pre-COVID Era: The Golden Days of Rewards

In the days before COVID, cashback wasn’t as big a player in the credit card world. Most cashback cards capped rewards at around 1.5% on everyday purchases, and you’d see up to 5% only on special merchants like Amazon or Flipkart. Most of us were focused on reward points instead, with over 80% redeeming for vouchers like shopping or dining.

Back then, people didn’t think too deeply about “points vs. cashback.” They just figured that whatever they were going to spend on the card would give them a little something extra—a nice little bonus to treat themselves to later. The idea of “freebies” for using credit card felt good. Benefits didn’t change much, and devaluation wasn’t a frequent concern. Stable redemption options were there, and counted on those reward points for future treats without worrying about losing value.

Good old days! People usually focus on their spends and anything they get extra from those spends felt like an extra treat without any worry about devaluation // doesn't know about it mostly.

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Post-COVID: High Cashback and Frequent Changes

After COVID, the credit card world went digital, and more card options became available. We’re now seeing cards that offer up to 10%-25% cashback on specific categories and merchants! Cards like the Ace credit card when initially offered 2% cashback, surprising many, as it was unheard of for everyday purchases. Now, rates have gone even higher, with some cards delivering impressive cashback percentages on regular spending.

Alongside these benefits, however, came frequent devaluations and shifting rewards structures. This makes it harder to rely on a specific redemption method since the benefits and points values can change unexpectedly. Some reward cards may no longer have the same flights, hotel redemptions, or vouchers available, leading many of them to prefer the straightforward value of cashback.

Today, rewards are trickier. Frequent devaluations and changing terms have us checking our cards’ benefits regularly. It’s now a game of making sure our points don’t lose value before we redeem them.

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Rewards or Cashback: What’s Your Go-To Strategy?​

Each has its pros and cons, so here’s a quick rundown of why you might go for one over the other.

1. Rewards: For those who still love redeeming points for vouchers, flights, or hotel stays, rewards can offer higher value if redeemed wisely. Travel, for example, can yield impressive value per point, sometimes making each point worth ₹1 or more if used strategically.
   • Tip: If you prefer rewards, it’s smart to plan your redemptions. Don’t hold onto points for too long as you might face a devaluation.
     
     
2. Cashback: Post-COVID, many people have shifted to cashback for its simplicity. It doesn’t require waiting or tracking value, and you can see it on your statement right away. Cashback is predictable and reliable, even though it may offer less value compared to some high-end rewards redemptions.
   
   • Tip: Cashback is great for people who don’t want to worry about expiring points or finding the best redemption options. It’s there when you need it, and you don’t have to wait.

So, what’s your go-to choice today—rewards or cashback?

For those new to post-COVID credit cards, you’ve might have mostly seen cards with higher cashback rates and devaluation concerns. But if you’ve been around since the pre-COVID era, you’ve likely seen everything from 1% cashback to today’s 10% rates, along with the shifts in point value and redemption options. And whether you're redeeming points for a voucher or flight upgrade—or even a KFC coupon!—now more aware than ever of maximizing every spend.

Mindset Shift: Where used to consider rewards a bonus, many of us now strategize our spending to maximize those points or cashback benefits.

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Share Your Story: Rewards or Cashback—What’s Your Style?​

Let’s hear from you!

• Do you prefer rewards or cashback, and why?
• Have you changed your preference over time?
• If you’re sticking with rewards, how often do you redeem your points—do you go for vouchers, flights, or hotel bookings?

Drop a comment and share your thoughts! Let’s help each other find the best redemption method for our unique spending styles in this ever-changing world of credit card benefits.

 

[Anindya98]

• Do you prefer rewards or cashback, and why?

Hate tracking reward points and pre-planning everything to get the maximum value of reward points redemption. Cashback is simple to track and has no variable value.

• Have you changed your preference over time?

No, currently I am happy with CB but once I redeem Rewards and get to know the process and value then I might change my preference.

 

[rajshubham820]

hi guys did anyone get 5 % cashback on hsbc corporate debit card for credit card bill payment using sbi unipay or canarasetu

 

[helloworld]

Hate tracking reward points and pre-planning everything to get the maximum value of reward points redemption. Cashback is simple to track and has no variable value.

No, currently I am happy with CB but once I redeem Rewards and get to know the process and value then I might change my preference.

Good point! For me, cashback feels like it just blends into my monthly expenses without much impact—it comes in, gets applied to the statement, and disappears without a trace. With rewards points, though, it feels like I actually earned something. They stand out, and managing them separately makes the benefits feel more freebies. Both options have their pros and cons, and the better choice really depends on each person’s preference and how well they can maximize redemptions or earn cashback effectively.

Good to know that your option towards cashback and yes its simple to track and no worries about expiry.

 

[maheshspanicker]

Things have reached a point wherein I'd rather prefer the simple cashback. But on cards like SC Super value Titanium and HDFC Tata Neu Infinity, and Millennia to some extend, you can accumulate cashback and use it together. That is the ideal situation for me. You can use the points for some particular plans, like a trip with family. Monthly cashbacks just become part of your silent spends/receipts without you quite realizing the value. On cards like Amex MRCC, despite devaluation, points still do matter, as you do get something of value. But on SC cards, the only cards making sense for most would be SC Smart or Titanium, with the reward points for the latter not meaning much.

 

[helloworld]

Things have reached a point wherein I'd rather prefer the simple cashback. But on cards like SC Super value Titanium and HDFC Tata Neu Infinity, and Millennia to some extend, you can accumulate cashback and use it together. That is the ideal situation for me. You can use the points for some particular plans, like a trip with family. Monthly cashbacks just become part of your silent spends/receipts without you quite realizing the value. On cards like Amex MRCC, despite devaluation, points still do matter, as you do get something of value. But on SC cards, the only cards making sense for most would be SC Smart or Titanium, with the reward points for the latter not meaning much.

agree and sadly they did damged these cards too like millennia require 50rs. as redemption fee, they can increase it more in future because they already made 50rs from 0.

Is your SVT LTF? because cap is very less to get the fee waiver, so checking and its a very good card to use any fuel station.

 

[maheshspanicker]

agree and sadly they did damged these cards too like millennia require 50rs. as redemption fee, they can increase it more in future because they already made 50rs from 0.

Is your SVT LTF? because cap is very less to get the fee waiver, so checking and its a very good card to use any fuel station.

SVT is paid. SCB is not willing to convert it to LTF. I haven't paid anything so far, has been using the card since 2020. The 4000 per month fuel, a bit of utility, and a few POS spends usually see me through to the 90000 mark...

 

[helloworld]

SVT is paid. SCB is not willing to convert it to LTF. I haven't paid anything so far, has been using the card since 2020. The 4000 per month fuel, a bit of utility, and a few POS spends usually see me through to the 90000 mark...

you might already aware, just sharing here..

its reward rate around 3%.

Post in thread 'Super Value Titanuim Credit Card LTF'

Jul 30, 2024

Super value titanium

1. mininum amount to redeem cashback 1000 and can change to 1500 (if they can).
2. Fee waiver required 90k spends where they offer fuel benefits for only upto 48k per year.

+ 24k on utility bills with min. 750
+ 48k on telephone bills with min. 750 (not sure whose bill >750)

if we ignore telephone bills then max. we can spend .. 72k

and receive cashback: 3120 and surcharge 1% = 480..

return % = 4%

- we pay 885rs annual fee and - 87 gst on surcharge = 972

net return % = 3%

• helloworld

• 

let me know if any changes.

 

[helloworld]

SVT is paid. SCB is not willing to convert it to LTF. I haven't paid anything so far, has been using the card since 2020. The 4000 per month fuel, a bit of utility, and a few POS spends usually see me through to the 90000 mark...

Check once BPCL SBI and Axis Airtel.. might work for you.

 

[Sup]

SVT is paid. SCB is not willing to convert it to LTF. I haven't paid anything so far, has been using the card since 2020. The 4000 per month fuel, a bit of utility, and a few POS spends usually see me through to the 90000 mark...

For fuel use park plus, you will end up saving more plus no hassle of reward points. For utility airtel axis is best. Get sbi cashback card for 5% additional cashback. Thet's the best combo for most people.

 

[cardio_guy]

Good post. Yes in older days I think reward points was the only or main benefit of cc. I remember my colleague telling me somewhere in 2015 that he got some 15000 points and redeemed it during some purchase. I didn't have any idea about credit cards then. Like everyone I used to think credit card is bad and dangerous.

I started using credit card actively in 2022 when I got the Amazon ICICI pay card. I had been a prime customer since 2018 or so. But never used cc. After a long thought and to see how it works and what it is, i applied for the apay card and got it. After using it for some months, that's when I understood the benefits potential, power, convenience of credit cards.

Since then I have been actively following this world and trying to understand the types of cards and benefits it offer.

Being a very normal guy with limited spends, sometimes even 2L per year seems not achievable because spends are not much. For a common man without extravagant spends, travel, hotel stay, the very normal spend will be around 20k per month for his entire expenses. In that, atleast even if he uses 80% card still it will be a very less thing.

That's where we come to rewards or cashbacks. Points do not matter at all to a low spender. Even if he accumulate for 2-3 years he won't get anything. Instead cashbacks like you told reflect directly instantaneously in statement.

5 to 10% cb is the norm these days and people are collecting many different cards for each of their use. If it was a reward card then just one card is enough to accumulate rewards on all spends. But cb you don't have that limitation. You can keep as many cards and get the best cashback in each case.

Another thing about devaluation - again if people are booked to a platform, they won't change easily but cards can be changed if it becomes useless..

Just some of my thoughts.

 

[helloworld]

Good post. Yes in older days I think reward points was the only or main benefit of cc. I remember my colleague telling me somewhere in 2015 that he got some 15000 points and redeemed it during some purchase. I didn't have any idea about credit cards then. Like everyone I used to think credit card is bad and dangerous.

I started using credit card actively in 2022 when I got the Amazon ICICI pay card. I had been a prime customer since 2018 or so. But never used cc. After a long thought and to see how it works and what it is, i applied for the apay card and got it. After using it for some months, that's when I understood the benefits potential, power, convenience of credit cards.

Since then I have been actively following this world and trying to understand the types of cards and benefits it offer.

Being a very normal guy with limited spends, sometimes even 2L per year seems not achievable because spends are not much. For a common man without extravagant spends, travel, hotel stay, the very normal spend will be around 20k per month for his entire expenses. In that, atleast even if he uses 80% card still it will be a very less thing.

That's where we come to rewards or cashbacks. Points do not matter at all to a low spender. Even if he accumulate for 2-3 years he won't get anything. Instead cashbacks like you told reflect directly instantaneously in statement.

5 to 10% cb is the norm these days and people are collecting many different cards for each of their use. If it was a reward card then just one card is enough to accumulate rewards on all spends. But cb you don't have that limitation. You can keep as many cards and get the best cashback in each case.

Another thing about devaluation - again if people are booked to a platform, they won't change easily but cards can be changed if it becomes useless..

Just some of my thoughts.

true.. reward cards need spends to a accumulate required points within short time, else either risk of devaluation nowadays or not able to redeem because points are not enough.

 

[TheGuy]

Earlier I used to prefer RP Cards, but having been burnt with number of banks sudden devaluation of existing pool of RP (SBI, Amex et al), I am now 100% pro CB. It is simple, it is efficient. Rather than waiting for different time to credit RP (Axis Atlas holders know this), CB is easily figured by looking at monthly statement.

Unlike HelloWorld, I feel the fungibility of cashback. RP seems too much work for tooo little. Only way RP cards slip in my quiver is when their rewards or benefits are exemplary (Atlas or lifestyle benefit of Infinia)

 

[helloworld]

Earlier I used to prefer RP Cards, but having been burnt with number of banks sudden devaluation of existing pool of RP (SBI, Amex et al), I am now 100% pro CB. It is simple, it is efficient. Rather than waiting for different time to credit RP (Axis Atlas holders know this), CB is easily figured by looking at monthly statement.

Nice! Yes devaluations impacted us, and we should aligned with what works best for us. Good to know!

 

[cardio_guy]

Earlier I used to prefer RP Cards, but having been burnt with number of banks sudden devaluation of existing pool of RP (SBI, Amex et al), I am now 100% pro CB. It is simple, it is efficient. Rather than waiting for different time to credit RP (Axis Atlas holders know this), CB is easily figured by looking at monthly statement.

Unlike HelloWorld, I feel the fungibility of cashback. RP seems too much work for tooo little. Only way RP cards slip in my quiver is when their rewards or benefits are exemplary (Atlas or lifestyle benefit of Infinia)

Also adding - Like I told above, to collect meaningful RP you need to be very loyal to one card.
And make sure that the RP benefits are much more above CB benefits.

Because in many cases unless premium card, RP benefits are not 10% or 5%, it seems much lesser.
Also in tier 3 towns, how much can someone spend on gift vouchers? Not all expenses go through amazon or other online apps.
So that creates a position where you need to swipe the card, or use UPI and things like that.

Even after all this, if RP reward rate is much higher like 25%+, then it makes sense, otherwise if it is in the range of 5-10-15%, always CB is straightforward.

Personally one need to have a cut off where he decide whether to go for RP or CB.

I think - Most common people and those who are new to CC, will stick to CB.
CC pros, legends and experts, and those with very high spends might go for RPs.