The State Bank of India's Cashback Credit Card is a great choice for those who want cashback and flexible rewards. This review gives you all the details about the card's benefits, costs, and eligibility requirements so you can make smart decisions.
Benefits of the SBI Cashback Credit Card
The primary attraction of the SBI Cashback Credit Card is its cashback feature, which allows users to earn a percentage back on various purchases.
One of the most significant advantages is the flat cashback rate on all transactions. This means that whether you are shopping for clothes or groceries, you consistently earn cashback. For example, cardholders can expect to receive 1% cashback on all offline purchases, which translates to ₹100 cashback for every ₹10,000 spent.
In addition, cardholders can earn as much as 5% cashback on all online purchases without any merchant restrictions, providing even more rewards on their regular expenses. This makes the card especially beneficial for families who prefer online purchases.
Further, the SBI Cashback Card provides a 1% fuel surcharge waiver for each transaction between Rs.500 and Rs.4,000, and a maximum surcharge waiver of Rs.250 per statement cycle is available per credit card account.
The SBI Cashback Credit Card also features contactless payments, ensuring quick and secure transactions for everyday purchases. Security is further enhanced by features such as fraud liability coverage and transaction alerts via SMS.
Cons of the SBI Cashback Credit Card
While the SBI Cashback Credit Card comes with notable advantages, it also has some drawbacks.
One key limitation is the cashback cap. Users can only earn a maximum cashback of Rs. 500 per month, which might disappoint heavy spenders looking for more returns. If someone frequently spends over Rs. 50,000, they may find the benefits lacking compared to other cards without such limits.
Interest rates on outstanding balances can also be a concern. With rates reaching up to 3.5% per month, cardholders who do not pay their full balance may incur substantial interest charges, which can negate the cashback benefits.
This card does not come with any complimentary Airport Lounge access, and the International Forex Markup of 3.5% will not please you if you are a travel enthusiast.
Additionally, transactions like cash withdrawals or payments towards loans, Fuel, Rent, and Utility transactions do not qualify for cashback, limiting the potential earnings for cardholders.
Fees and Charges
Understanding the fees associated with the SBI Cashback Credit Card is crucial before applying.
The joining fee for the SBI Cashback Credit Card is Rs. 999, and there is an annual fee of Rs 999 from the second year onward that may be waived depending on spending. After the first year, cardholders who spend over Rs. 2,00,000 can avoid this fee in subsequent years.
Late payment fees can quickly add up, so cardholders must stay on top of their payment schedules to avoid penalties. If payments are late, fees could reach up to ₹1,000, depending on the outstanding balance.
When using the card abroad, foreign transaction fees of 3.5% on international purchases come into play. This is an essential consideration for those traveling or shopping online from foreign merchants.
Additionally, cash withdrawal fees apply and can result in immediate interest charges. The cost of accessing cash using the credit card can make it an expensive option compared to other methods.
Meeting the Eligibility Requirements
If you're looking to apply for the SBI Cashback Credit Card, it is vital to understand the eligibility criteria.
Applicants must be between 21 and 60 years old, which is a common age range for credit cards.
In terms of income, there is a minimum requirement that varies between ₹3 lakhs to ₹5 lakhs annually, depending on whether the applicant is salaried or self-employed. Relevant documentation will be required during the application process to support claims about employment and income.
A good credit score is essential, with a recommended score above 750 to improve the chances of approval. Those with a strong credit history typically navigate the application process more smoothly.
Citizens of India with proper documentation and local residency are eligible. The bank conducts verification, including checking the applicant's financial history and repayment capacity.
Weighing Your Options
The SBI Cashback Credit Card is a great way to earn rewards on everyday spending. It has a solid cashback rate and flexible usage, so it's perfect for most people. But you need to check out the limitations, like the cashback cap and interest rates, to make sure it's right for you and your financial goals. If you manage your credit well and use this card's perks, you can maximize your rewards and have a good credit experience.
If you want to read a more detailed review of this card and find out its AI-powered unbiased rating click here.
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