Choosing whether you want to apply for a rewards credit card or cashback credit card totally depends on your spending pattern. If you are someone who frequently shops online, then choosing a credit card that offers direct cashback on your expenses, would be a better choice rather than applying for a rewards credit card. On the other hand, if you are a frequent traveller, then choosing a credit card that offers more value out of rewards instead of cashback, would be an ideal choice. Some card issuers also allow you to redeem the earned reward points against flight tickets, hotel bookings and more, which is a great deal if you travel frequently.
Overall, if you are someone who wants to avail basic benefits and don’t want to pay a high annual fee, then cashback credit cards are a great option. Cashback credit cards allow you to save on your daily purchases as well as other expenses. However, if you are a loyal customer of a particular airline or hotel, then choosing a rewards credit card would be better as such cards allow you to earn higher reward points on the partnered brand.
Ultimately, the perfect credit card for you depends on your spending habits, budget and repayment capacity. Look for multiple credit cards and compare them to make an informed decision.