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Points vs Vouchers vs Cashback: Which Credit Card Reward is Best For You?

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September 22, 2022


What’s Inside

Credit cards have become one of the most attractive options for people, primarily because of the plethora of rewards they offer. Different credit cards offer different privileges. Some offer reward points, some offer vouchers while others offer cashback for every transaction made on the credit card. Depending on your spending pattern, financial situation and overall taste, you can choose the best reward for you. Here is a guide to help you with the selection process.

Credit Card Reward Points

Credit cards with reward points offer points for every transaction made using the card. Credit cards also offer accelerated rewards for different types of transactions, such as online, offline, and fuel transactions. If you are wondering how to use credit card reward points, they can be redeemed for various options, including gifts, vouchers, cashback, and more.

Pros and Cons of Credit Card Reward Points



You can earn accelerated reward points for particular transactions, depending on the brand of credit card you choose.

The credit card points redemption choices might not always suit everyone.

You can explore various credit card points redemption options and choose the one that can benefit you the most.

There is usually a minimum threshold of reward points that you need to accrue before you can redeem them.

Although the rewards earned from one single transaction might seem too small, it does turn into something significant over time as it accumulates.

Redeemed reward points have a validity period.

Credit Card Vouchers

Vouchers are also a popular reward offered by credit cards. Credit cards offer different vouchers like fuel vouchers, gym vouchers and shopping vouchers on every transaction. These rewards can be used at different places to get goods or services for free.

Pros and Cons of Credit Card Vouchers



The vouchers can help you save a lot of money.

The vouchers may not be very useful.

You have the chance to win big with vouchers, as opposed to reward points which are pre-decided.

You cannot get cashback on vouchers.

Credit Card Cashback

Certain credit cards offer cashbacks for every transaction you make. This is usually a certain percentage of the total transaction amount. Cashbacks are most appealing for people who do not gain much from the reward point redemptions or vouchers.

Pros and Cons of Credit Card Cashbacks



Cash rewards are flexible and can be spent any way you want.

You may not get as much value from your rewards as with reward points or vouchers.

Once redeemed, you can use the reward whenever you want.


Cashbacks are easily redeemable.


How to Choose the Right Rewards?

Choosing a credit card with the right reward is not easy. However, if you analyse your spending patterns and see what kind of rewards bring the most value to you, you will be able to find the right reward for you.

Fi-Federal Credit Card: The Ultimate Reward Solution for Savvy Shoppers

Not all credit cards offer different kinds of rewards for you to enjoy. The Fi-Federal Credit Card is one such exception that you should take advantage of.

If you're looking for a credit card that gives you the best bang for your buck, try the Fi-Federal Credit Card. This might just be what you need. With this card, you're assured of a 2% valueback through rewards. But that's not all, as you'll also get 5x on your top 3 brands, 2x on all partner brands, and 1x on everything else, including rent and fuel. What's unique about Fi Money is that you earn points in the form of Fi-Coins, our very own reward system. For travellers, the perks are even better as you can convert your Fi-Coins to airline miles or cashback.

Frequently Asked Questions

1. Is it better to get cash back rewards or points?

If you do not find much value in the reward point redemptions, it is better to opt for cashback rewards. However, points do have the potential to give you much higher value rewards.

2. What are the disadvantages of cashback rewards?

Cashbacks can sometimes not give you as much value as some reward point redemptions or vouchers can.

3. What are the 3 main types of credit card rewards?

The three main types of credit card rewards are:

  • Points
  • Vouchers
  • Rewards

4. What is the smartest way to use a credit card that has rewards?

You can use a credit card with rewards for all daily as well as big transactions. This way you can accrue rewards and make big savings on all your spending.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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