The Benefits of Using a Credit Card for Everyday Purchases: Cashback, Rewards, and More Credit Card Fees

We all need to make certain necessary purchases for our everyday lives. These purchases include items like food, sorcery, clothing, cleaning products, and many others. These are collectively known as everyday purchases, in contrast to one-time purchases of goods like cars, houses, and electrical appliances. 

While we associate credit card purchases with higher-end purchases that exceed current available cash reserves, we can also use them to make everyday purchases to avail certain benefits and savings. These benefits include cashback on certain purchases, earning reward points on certain purchases, and availing waiver on your annual credit card fee. Using credit cards for everyday purchases can also help boost your credit score if you repay the bills on time. Make sure to opt for the free CIBIL score check services via the CIBIL score app and website while you use the card.

Advantages of Using a Credit Card on Everyday Purchases

Here are some of the benefits of using a credit card for everyday purchases:

Cashback

Many credit cards provide cashback offers on your everyday purchases. When you purchase a good or item from a vendor using your credit card, sometimes a percentage of the purchase amount is refunded back to your credit card balance. This refund is called cashback. 

If you have a credit card that offers good cashback on everyday purchases, you can take advantage of them and save a lot of money. Not all goods and services have cashback offers, so check which are valid and which are not before you make any purchases.

Rewards

You can sometimes earn reward points when you make certain purchases with your credit cards. Reward points are usually awarded for a fixed amount of spending; for example, you might earn 2 or 4 reward points for every Rs 100 spent on your card. Every card has unique criteria and eligibility requirements, so check them before purchasing. 

When you collect the required reward points, you can redeem them on select goods and services approved by your lender. Again, check the valid list of redeemable goods and items before committing to redeem any of them.

Credit Card Fees

Credit cards have annual fees you must pay to use the card. Your card might get restricted or cancelled if you do not pay the annual fee. However, some cards come with offers that you can use to cancel the annual fee. This offer usually requires you to spend a certain amount of money from your card within the given year to avail of the fee waiver. 

For example, if you spend Rs 50,000 or Rs 1,00,000 between January and December on your credit card, you do not have to pay your annual credit card fee. Use your credit card as much as possible on your everyday purchases to avail yourself of this offer.

Free Cibil Score Check on The Cibil Score App

These are the benefits of using the free CIBIL score check service available on the CIBIL website and app. 

  • CIBIL score check is essential in helping you evaluate your creditworthiness and standing with lenders.
  • It allows you to regularly monitor your credit score and prevent fraud and identity theft.
  • Using the free CIBIL score check service available on the CIBIL Score App can help you double-check your personal and financial information available to lenders and correct any errors, if any.
  • It provides you with guidance that you can follow to increase your credit rating and future loan prospects.
  • It offers you access to the Score Simulator feature. This feature allows you to simulate different actions and check how they will affect your credit rating.
  • Furthermore, the CIBIL score app’s free CIBIL score check service allows you to compare different credit card and loan offers and choose the ones with the most beneficial terms.

Conclusion

This article lists the benefits of using credit cards for everyday purchases and the free CIBIL score check service available on the CIBIL Score App. Using your credit card on everyday purchases can help you avail benefits like cashback, reward points, and waiver of annual credit fees. 

Meanwhile, the free CIBIL score check service helps you monitor your creditworthiness, compare credit card and loan offers, identify and correct mistakes and errors in your lender details, detect and prevent fraud and identity theft and gain access to tips and tricks for improving your credit score. 

Therefore, using your credit card for everyday purchases and using the CIBIL mobile app regularly is a good practice.

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