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  “How to Increase CIBIL Score Fast " Factor Weightage Payment history 35% Credit utilization 30% Credit history length 15% Credit mix (secured + unsecured) 10% Credit inquiries 10% To increase score fast, we focus on the highest-impact factors. 1. Pay All EMIs & Credit Card Dues Before Due Date Late payments are the No.1 reason scores drop.  Best trick to increase score fast: Set auto-pay for EMIs & credit cards Pay credit card bill 5 days before due date Even paying minimum due on time protects score from damage  Never delay payments — even 1 delay stays in report for 2 years. Improvement Timeline: 30–60 days 2. Reduce Credit Card Utilization Below 30% High usage = score drop even if you pay on time. Example: If your credit limit = ₹1,00,000 Never use more than ₹30,000 per month ✔ Maintain < 10% if possible (fastest score boost) Improvement Timeline: 45–60 days 3. Clear Small Outstanding Du...
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Is Cashback Really Worth It? What You Don’t See

 



Cashback offers are everywhere — from credit cards to shopping apps and digital wallets. They seem like a free reward for spending, but is cashback truly beneficial, or is it just a clever marketing tactic? Here’s a deep dive into the pros, cons, and hidden truths about cashback that most people overlook.

What Is Cashback?

Cashback is a percentage of your spending returned to you as a reward. For example, if your credit card offers 2% cashback and you spend ₹10,000, you get ₹200 back.


The Benefits of Cashback

1. 

Extra Savings on Routine Expenses

  • Everyday purchases like groceries, fuel, and utility bills can yield consistent returns.
  • Apps like CRED, PhonePe, Paytm, or credit cards like HDFC Millennia, SBI Cashback, or Amazon ICICI offer money back on spends you’d make anyway.

2. 

Simple and Automatic

  • No need for tracking loyalty points or coupons.
  • Cashback often auto-applies without extra effort

3. 

Better than Discounts (Sometimes)

  • Discounts reduce the price, but cashback gives you actual money that you can use elsewhere — bank credit, statement adjustment, or gift cards.

4. 

Encourages Digital Spending

  • Useful in a cashless world — particularly with QR code payments, UPI, and online shopping.

What You Don’t See (The Catch)

1. 

Encourages Overspending

  • The psychology of “getting something back” often tricks you into buying things you don’t need.
  • Example: Buying a ₹5,000 item with 10% cashback still costs ₹4,500 — which may be ₹4,500 more than you should’ve spent.

2. 

Delayed Gratification

  • Cashback is often credited after days or months.
  • In some cases (like Amazon or Flipkart), you might get it as wallet credit, not actual cash.

3. 

Hidden Terms & Limits

  • Minimum spend thresholds (e.g., spend ₹3,000 to get ₹300 cashback).
  • Monthly/transaction caps (e.g., ₹500 max cashback).
  • Specific merchants or categories only (fuel, dining, or e-commerce).

4. 

Not Real “Income”

  • Cashback is not wealth creation.
  • You’re still spending money; you’re just getting a small fraction back — not building savings or investments.

5. 

Can Lead to Credit Card Debt

  • Cashback credit cards tempt users to swipe more, often leading to balances they can’t repay — causing interest to pile up (often 30-40% APR).

Smart Cashback Strategies

If you want to make cashback work for you and not the other way around:

✅ Use It on Planned Spending

Only use cashback cards or offers on purchases you already planned — bills, fuel, groceries, etc.

Bottom Line

Cashback is a marketing tool, not a financial strategy. Treat it as a bonus, not a reason to spend. If used wisely, it’s a sweet little perk. If not, it’s just a sugar-coated trap.

✅ Compare Offers

Use tools like:

  • CashKaro, PaisaBazaar, or Card Insider to compare cashback credit cards.
  • Online aggregators for UPI and app-based offers.

✅ Redeem Wisely

Don’t leave cashback unused in wallets or let it expire — convert it to vouchers or transfer it to your account when possible.

✅ Combine with Coupons

Sometimes you can stack cashback with coupon codes for maximum savings.

✅ Track and Automate

Use apps that track your cashback credits — especially for credit cards or UPI payments.

The Real Value: Not Cashback — But Control

Cashback can be a smart tool if you’re in control of your spending. The real win isn’t the 1% return — it’s resisting impulse buying while still enjoying small rewards for spending smartly.


Final Verdict: Is Cashback Worth It?

If You

Then Cashback Is….

Stick to a budget

✅Helpful and rewarding

Spend impulsively

❎Risky and misleading

Use credit responsibly

✅ Great for regular rewards

Carry credit card debt

❎Cashback won’t help

Chase cashback without a plan

❎Losing money, not saving


Bottom Line:

Cashback is a marketing tool, not a financial strategy. Treat it as a bonus, not a reason to spend. If used wisely, it’s a sweet little perk. If not, it’s just a sugar-coated trap.


Source of image: Google 

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