Cashback credit cards allow you to earn cash from the money you spend on your credit card, by either paying you back a percentage of what you spend or as reward points.

Simply put, when you buy something using your cashback credit card, you get a percentage of the amount it costs as a form of cashback. Most banks credit the amount you earn onto your credit card statement every month, reducing your credit card bill. Some banks also offer reward points or cash points for every spend which you can redeem later or use to earn a discount while buying other things.