Travel Credit Cards Vs Cashback Credit Cards

People often get confused when it comes to choosing between travel credit cards and cashback credit cards. Both these categories have a variety of credit cards with loads of offers, vouchers, and discounts. Travel cards are more inclined towards travel expenses whereas cashback credit cards serve the purpose of providing cash back on every possible transaction. 

When it comes to choosing between these credit cards, there are some factors one must consider. Let’s get deep into comparing travel credit cards and cashback credit cards:

Purpose: 

Travel Credit Cards are made specifically to provide travel-bound offers and benefits. These benefits revolve around booking flights and hotels, getting discounts on restaurants, and more of such benefits. You can also opt for co-branded cards if you are brand specific in case of booking hotels or flights.

Cashback Credit Cards provide benefits with almost every transaction you make using them. You earn rewards based on your spending and earn cashback into your account. Unlike reward points, Cashback Credit Cards reflect the cashback directly in the statement or bill.  

Dedicated Benefits

Travel cards have benefits dedicated to travel and related expenses. Following are some of the common benefits these cards provide with:

• Airport lounge access both domestic and international
• Discounts at hotels and extra rewards for partnered hotels 
• Complimentary dining programs
• Some cards provide Dining benefits and vouchers
• Miles points to be redeemed when booking flights or avail cashback and rewards
• Cards can also provide shopping benefits 

Cashback Credit Cards on the other hand provide benefits that are as follows:

• Minimal joining and annual fees
• Good for new users and people who want to own their first credit card
• No expiry date for cashback unlike reward points
• Cashback is directly reflected in the user’s bank account
• Can help in building a good credit score if used wisely

Drawbacks: 

While these cards might seem beneficial from the outside, there are things that one must look at before issuing one of these cards for themselves:

Following are the downsides of Travel Credit Cards:

• Expensive to get and maintain
• Only provide travel benefits and cannot be used on a daily basis
• Reward points come with an expiry date after which they are of no use

Also checkout - Best Travel Credit Cards in India

Cashback Cards too have some flaws:

• Cashback might vary on different transactions thus, giving inconsistent rewards
• Cashback cannot be converted into vouchers and discount coupons unlike reward points
• Provide no category-specific discounts like shopping or dining benefits

Bottom Line: 

One can opt for travel cards if one travel frequently. These can help you fetch good discounts on flights and hotels. Cashback credit cards are more of a daily use credit card with minimal category-specific benefits and rewards. One can prefer these cards as their first credit card or if they don’t use credit cards often

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