By Ankur Mittal
Updated On February 22, 2022

Almost everyone wants to have a credit card today, not only to get a credit limit to spend but also to enjoy all the rewards and benefits provided by these cards. Rewards Credit Cards are one of the most common types of credit cards available in the market. It is because these are generally affordable and some of them even come with a zero annual fee. When you spend using a Rewards Card, you earn a specific number of reward points for every particular amount of spends. These reward points can be redeemed later against different categories, including shopping, travel-related bookings, gift vouchers, and many more. This is how you can save every time you spend using a rewards credit card. However, there are a lot of things that you need to understand before having a credit card so that you can make the most out of it. It is never a good idea to go with the first credit card offer you get, but it requires a lot of research and understanding to choose a credit card that fits your requirements so that you can get the maximum benefit.

Best Rewards Credit Cards India

Almost every credit card issuer offers reward points to their customers on most of the credit cards. These reward points can be more on selected categories and fewer on other categories, and that is why it becomes important to analyze your spending habits and compare different credit cards before applying for a credit card. With hundreds of Rewards credit cards in India, it might really be confusing for individuals to find out the best card for themselves. Before going with one, you should be aware of the answers to some questions like: What are Rewards Credit Cards? How To Choose the Best Rewards card for yourself? How do the Rewards cards work? How you can redeem the reward points you earn? And many more. This article is solely aimed at providing you with the answers to all these questions. Read on to know more about rewards credit cards, their benefits, and a list of best rewards credit cards:

List of Best Rewards Credit Cards in India 2022

There are thousands of credit cards in the market, which provide reward points on almost every purchase that the cardholders make. And hence it becomes challenging for people to filter out the best options and then find the right credit card for themselves. We are here with a list of the best rewards credit cards in India that include basic as well as premium cards. You can check all their benefits, fees & charges, etc, and then decide which card is going to benefit you the most:

Table of Contents

Top Entry-Level Rewards Credit Cards

SBI SimplyCLICK credit card

Welcome Benefits

Get an Amazon gift voucher worth Rs. 500 as welcome benefits after paying the annual fees.

Rewards Rate

1 Reward Point per Rs. 100 on offline spends (reward rate = 0.25%), 10X RPs on online spends at partner merchants (Amazon, BookMyShow, Apollo24x7, etc.) (reward rate = 2.5%), 5X RPs on other online spends (reward rate = 1.25%)

Joining Fees

Rs. 499 (plus applicable taxes)

The SBI SimplyCLICK Credit Card is a basic and affordable credit card issued by the SBI card to let its customers avail of the maximum benefits with minimum charges. The card comes with exclusive benefits, such as its Reward programs, welcome gift, milestone, benefits, etc. Following is a list defining its advantages:

  • 10 Reward Points per Rs. 100 on spends at partner online merchants including Amazon, Cleartrip, BookMyShow, Dineout, Lenskart, Apollo24x7, and Netmeds (reward rate of 2.5% as 1 Reward Point is equivalent to Rs. 0.25).
  • 5 Reward Points per Rs. 100 on all online spends with the card (reward rate of 1.25%).
  • 1 Reward Point per Rs. 100 on all other spends with the card (reward rate of 0.25%).
  • Amazon gift voucher worth Rs. 500 as a welcome benefit.
  • Up to 4,000 bonus Reward Points every year.
  • A 1% fuel surcharge waiver.
  • Spend-based annual fee waiver.

Click here to read more about the card.

American Express Smart Earn Credit Card

Welcome Benefits

Cashback of Rs. 500 on spends of Rs. 10,000 within 90 days of card issuance.

Rewards Rate

1 Membership Reward Point/Rs. 50 spent (with a few exceptions), accelerated Reward Points on Amazon and Flipkart (10X), Uber (10X) and on other merchants like Paytm, Swiggy, PVR, etc (5%).

Joining Fees

Rs. 495 (plus applicable taxes)

As suggested by the name, the American Express SmartEarn Credit Card allows its customers to earn rewards smartly every time they spend using their card. You can save up to 5% on your expenses using this card. More of the benefits of this card include:

  • A cashback of 500 as a welcome benefit on a minimum spend of Rs. 90,000.
  • 10 Membership Rewards Points per Rs. 50 on Amazon and Flipkart (max capping of 500 Points on Amazon and Flipkart combined).
  • 10 Membership Rewards Points per Rs. 50 on Uber rids (max capping of 500 Reward Points).
  • 5 Membership Rewards Points per Rs. 50 on Paytm wallet uploads, Swiggy, BookMyShow, Big Bazaar, PVR and Myntra (max 250 Points at this rate).
  • 1 Membership Rewards Point per Rs. 50 on all other spends with the card.
  • A 1% fuel surcharge waiver.
  • Gift vouchers on achieving the milestone spend.

Click here to read more about the card.

Citi Rewards Credit Card

Welcome Benefits

Up to 2,500 Reward Points

Rewards Rate

1 Reward point per Rs. 125 spent and 10 Reward Points per Rs. 125 spent on departmental stores.

Joining Fees

Rs. 1,000 plus applicable taxes (complimentary for Citibank Suvidha account holders)

The Citi Rewards Credit Card is aimed at providing the best Reward offers to its customers. It comes with exclusive welcome benefits and earns you reward points on almost all your spends and accelerated Reward Points on some selected categories. Moreover, you can earn bonus reward points every month based on your monthly spends. More of the benefits of the Citi rewards credit card include:

  • Welcome bonus of up to 2,500 Reward Points.
  • 300 bonus Reward Points each month.
  • 1 Reward Point per Rs. 125 spent with the card.
  • 10 Reward Points per Rs. 125 spent on apparel and departmental store.
  • Spend-based annual fee waiver
  • 1% fuel surcharge waiver at Indian Oil outlets.

Click here to read more about the card.

IDFC First Select Credit Card

Welcome Benefits

Gift voucher worth Rs. 500 based on spends within 90 days of card issuance and a 5% cashback on EMI transactions within 90 days of card issuance.

Rewards Rate

3 Reward Points per Rs. 100 spent offline, 6 Reward Points per Rs. 100 spent online, and 10 Reward Points per Rs. 100 on spends above Rs. 20,000.

Joining Fees

Nil

The IDFC FIRST Select Credit Card aims to make your life more rewarding with its great Reward programs earning you benefits up to 2.5% on your spends. One of the best things about this card is: the Reward Points you earn are not capped at any maximum value & they don’t expire ever. Moreover, the card has other exclusive benefits as well including:

  • 3x Reward Points on every Rs. 100 spent on offline spendings up to Rs. 20,000 (1x Reward Points = 1 Reward Point per Rs. 100).
  • 6x Reward Points per Rs. 100 on online spendings.
  • 10x Reward Points on purchases above Rs. 20,000 and on all spends on birthday.
  • Gift vouchers worth Rs. 500 as a welcome gift.
  • 2 free movie tickets every month.
  • Complimentary domestic railway & airport lounge access.

Click here to read more about the card.

RBL Bank ShopRite Credit Card

Welcome Benefits

A welcome bonus of 2,000 Reward Points.

Rewards Rate

On every spend of Rs. 100, you get 1 Reward Point on retail spends, 10 reward points on fuel, and 20 reward points on grocery purchases.

Joining Fees

Rs. 500 plus applicable taxes

The RBL bank Shoprite Credit Card is a basic card with exclusive reward programs that allows you to save up to 5% on your regular spends, up to 10% on movies, and 2.5% on fuel spends. The card is best suited for people who want to avail of maximum saving opportunities with minimum charges. Following are some more benefits of the card:

  • 20 Reward Points per Rs. 100 on grocery shopping.
  • 10 Reward Points per Rs. 100 on fuel purchases.
  • 1 Reward Point per Rs. 100 on all other spends with the card.
  • Exclusive welcome benefits.
  • A discount of 10% on movies 15 times a year.
  • 1% fuel surcharge waiver.
  •  Spend-based renewal fee waiver.

Click here to read more about the card.

HSBC Smart Value Credit Card

Welcome Benefits

3 complimentary airport lounge access, an Amazon gift voucher worth Rs. 500, 10% cashback up to Rs. 1,000, and 50% discount on Google Pay.

Rewards Rate

1 Reward Points on every spend of Rs. 100 and 3x RPs on dining, telecom categories, and all online spends.

Joining Fees

Nil

The HSBC Smart Value Credit Card is a card that comes without a joining/annual fee and allows its customers to save more and more on their spends. Along with its great Reward programs, the card has various other benefits including:

  • 1 Reward Point per Rs. 100 spent with the card.
  • 3x Reward Points on dining and telecom spends and on all other spends with the card.
  • Complimentary airport lounge access.
  • Amazon gift voucher worth Rs. 500 as a welcome gift.
  • Up to 50% discount on your first transaction on google pay.
  • Accelerated Reward Points on selected categories including dining.

Top Premium Rewards Credit Cards

Axis Bank Magnus Credit Card

Welcome Benefits

Choose any one- Tata Cliq voucher or a complimentary domestic flight ticket worth Rs. 10,000.

Rewards Rate

12 Axis EDGE REWARDS Points for every Rs. 200 spent with the card, 2X Points on MakeMyTrip, Yatra, Goibibo, etc.

Joining Fees

Rs. 10,000 + GST

Axis Bank Magnus Credit Card is issued by the Axis Bank with an aim to provide its customers with the best rewarding experiences no matter what they do using their card. Along with its exciting reward programs, the card comes with super-premium advantages. Some of its benefits are as mentioned below:

  • 12 Edge Reward Points per Rs. 200 spent with the card.
  • 25,000 Edge Reward Points worth Rs. 5,000 every month on monthly spends of minimum Rs. 1 lac with the card.
  • 5x Edge Reward Points on flight/hotel bookings via Axis Bank Travel Edge portal.
  • Complimentary domestic as well as international lounge access.
  • Up to Rs. 500 off on movie tickets on BookMyShow.
  • Complimentary VIP services at the airport.
  • Complimentary Dine Out Passport membership.
  • Low foreign currency markup fee.
  • No cash withdrawal fees.
  • Spend-based annual fee waiver.

Click here to read more about the card.

Invite Only
HDFC Infinia Credit Card Metal Edition

Welcome Benefits

10,000 bonus Reward Points and free Club Marriott membership for first year.

Rewards Rate

5 Reward Points for every Rs. 150 spent,  reward rate of up to 3.3%

Joining Fees

Rs. 12,500 (plus applicable taxes)

The HDFC Bank Infinia credit card is a premium credit card that comes with exclusive benefits over several categories, including rewards, travel, dining, insurance, etc. It earns you Reward Points every time you spend and you get accelerated reward points through the Smartbuy portal. Following are some of the additional benefits of this card:

  • 5 Reward Points per Rs. 150 spent with the card.
  • 5x Reward Points on flight and bus bookings, 3x Reward Points on rail bookings and 10x Reward Points on hotel bookings via Smartbuy.
  • 5x Reward Points on Instant Vouchers, purchases at Amazon and Apple store and 3x Reward Points on Flipkart via SmartBuy.
  • Complimentary Club Marriott membership.
  • Access to unlimited complimentary golf games.
  • Low foreign currency markup fee.
  • Complimentary Dine Out Passport membership.
  • Spend-based renewal fee waiver.

Click here to read more about the card.

Welcome Benefits

6,000 reward points redeemable for shopping vouchers or charity spends under the Standard Chartered 360° rewards program.

Rewards Rate

5 Reward Points for every Rs. 150 spent

Joining Fees

Rs. 5,000

The Standard Chartered Ultimate Credit Card comes with great Reward programs to let its customers save amazingly on their spends. With this card, you can save 3% on all your spends. The card has several more benefits, which are as follows:

  • 5 Reward Points per Rs. 150 on all categories of spends including fuel, utility and insurance.
  • Additional 5% cashback on duty-free spends.
  • Complimentary access to golf games.
  • Low forex markup fee.
  • 24*7 concierge services.

Click here to read more about the card.

American Express Platinum Card

Welcome Benefits

1,00,000 Membership Rewards Points or Taj, SeleQtions, and Vivanta Hotels’ vouchers worth Rs. 45,000.

Rewards Rate

1 Membership Rewards Point on every Rs. 40, 3X Points on all international spends, and 5X Rewards Points on transactions via Reward Multiplier portal.

Joining Fees

Rs. 60,000 (plus applicable taxes)

The American Express Platinum Credit Card is a super premium credit card that is not only aimed at providing reward points but also provides luxurious lifestyle benefits to its customers. With this card, you can enjoy airport lounges, exciting gift vouchers as a welcome gift, and many more. Here is a list of its benefits:

  • 1 Membership Rewards Point per Rs. 40 spent with the card.
  • 5x Membership Rewards Points through Reward multiplier Program.
  • Membership Rewards Points redeemable against products, shopping vouchers and travel vouchers.
  • The maximum redemption value of Membership Rewards Points is Rs. 0.50 (for redemption against  Taj vouchers).
  • Invitations to exclusive VIP-only events.
  • Complimentary EazyDiner membership.
  • Complimentary airport lounge access.

Click here to read more about the card.

HDFC Bank Diners Club Black Credit Card

Welcome Benefits

Complimentary Club Marriott, Amazon Prime, Zomato Gold, Forbes, Times Prime, and MMTDOUBLEBLACK memberships for a year.

Rewards Rate

5 Reward Points for every Rs. 150 spent (reward rate of up to 3.3%), accelerated Reward Points on SmartBuy

Joining Fees

Rs. 10,000 (plus applicable taxes)

The HDFC Bank Diners Club Black Credit Card is one of the super-premium credit cards issued by the HDFC Bank that attracts the customers not only due to its exclusive reward programs but also with its other exciting benefits, including travel, dining, concierge services, etc. The list of its key features include:

  • 5 Reward Points per Rs. 150 spent with the card.
  • Up to 10x Reward Points on spends on travel through SmartBuy.
  • Access to 6 complimentary golf games every quarter.
  • Complimentary airport lounge access.
  • Low foreign currency markup fee.
  • Earn gift vouchers every month based on your total monthly spends.
  • Accelerated Reward Points on dining on weekends.

Click here to read more about the card.

Bank of Baroda Eterna Credit Card

Welcome Benefits

6-month FitPass Pro membership worth Rs. 15,000 and 10,000 bonus reward points.

Rewards Rate

15 reward points / Rs. 100 on online shopping, travel, movie, and dining spends (max cap of 5,000 points at this rate), 3 reward points/ Rs. 100 for spends on all other categories.

Joining Fees

Rs. 2,499 + GST

Issued by the Bank of Baroda, the BoB ETERNA Credit Card comes with great Reward programs providing Reward Points on all your spends and accelerated Reward Points on selected categories. Along with earning the regular rewards, you can avail of several other benefits with this card, some of which include:

  • 15 Reward Points per Rs. 100 on shopping, travel, dining and movie spends (reward rate of 3.75% as 1 RP = Rs. 0.25).
  • 3 Reward Points on all other spends with the card (reward rate of 0.75%).
  • Complimentary FitPass Pro membership worth Rs. 15,000.
  • Complimentary golf rounds.
  • Up to 20,000 bonus Reward Points on achieving the milestone spend.
  • Accidental death cover worth Rs. 1 crore.
  • 1% fuel surcharge waiver.

Click here to read more about the card.

Yes Bank First Exclusive Credit Card

Welcome Benefits

N/A

Rewards Rate

6 Reward Points for every Rs. 200 spent on Select category, 12 Reward Points for every Rs. 200 spent on all purchases except from the Select category and 1000 Reward Points on each Yes PayNow registration.

Joining Fees

Rs. 999 (plus applicable taxes)

The YES First Exclusive Credit Card is a premium credit card that comes with various exciting benefits along with Reward Points. The card welcomes you with an opportunity to earn 40,000 Reward Points and rewards you for everything you do using it. The card has various other benefits, some of which are:

  • 6 Reward Points per Rs. 200 on spends in select categories- transportation fares (bus tickets/ taxicab fare, etc), utility bill payments, grocery purchases, insurance premium payments, school/college fees payments, tax and toll payments and a few other miscellaneous transactions and 12 Reward Points per Rs. 200 on all other spends categories.
  • 10X Reward Points on categories like Amazon, Myntra, Flipkart, TataCliq, domestic/international flight bookings through YES Cart.
  • 30,000 bonus reward Points each year on card renewal.
  • Up to 20,000 additional bonus Reward Points, each year on achieving the milestone spend.
  • Complimentary Priority Pass membership.
  • Unlimited complimentary international lounge access every year.
  • 4 complimentary golf games every year.
  • Low foreign currency markup fee.
  • Exclusive insurance benefits.

Click here to read more about the card.

Reward Points

Credit Card Reward Points Value of 1 Reward Point Maximum Reward Rate
American Express Platinum Credit Card 5 Membership Reward Points per Rs. 40 spent on Rewards multiplier Program.
3 Reward Points per international spend of Rs. 40.
1 Reward Point per Rs. 40 spent elsewhere.
Re. 0.25 3.125%
HDFC Bank Infinia Credit Card 5 Reward Points per retail spend of Rs. 150. Re. 1 for flight/hotel bookings via Smartbuy.
Re. 0.50 for products & vouchers.
Re. 0.30 for Cashback.
3.3%
Axis Bank Magnus Credit Card 24 Edge Rewards per Rs. 200 spent on the yatra, MakeMyTrip, Goibibo, etc.
12 Edge Rewards per Rs. 200 spent elsewhere.
Re. 0.20 2.4%
Standard Chartered Ultimate Credit Card 5 Reward Points per Rs. 150 spent. Re. 1 3.33%
HDFC Diners Club Black Credit Card 5 Reward Points per Rs. 150 spent elsewhere. Re. 1 for flight/hotel bookings via Smartbuy.
Re. 0.50 for products & vouchers.
Re. 0.30 for Cashback.
3.3%
IndusInd Pinnacle World Credit Card 2.5 Reward Points per Rs. 100 spent on E-Commerce transactions.
1.5 Reward Points per Rs. 100 spent on E-com travel spends.
1 Reward Point per Rs. 100 spent on utility bills, PoS, MoTo, IVR, etc
Re. 1 2.5%
BoB Eterna Credit Card 15 Reward Points per Rs. 100 spent on travel, dining, online shopping & international transactions.
3 Reward Points per Rs. 100 spent
Re. 0.25 3.75%
ICICI Bank Sapphiro Credit Card Up to 3 PAYBACK Points per domestic spend of Rs. 100.
Up to 6 PAYBACK points per international spend of Rs. 100.
Re. 0.25 1.5%
YES First Exclusive Credit Card 12 Reward Points per Rs. 200 spent on all categories.
6 Reward Points per Rs. 200 spent on utility bills, tax payments, postal services, etc.
Re. 0.25 (for redemption against flight/hotel bookings)
Re. 0.10 for redemption against product catalogue, gift vouchers, etc.
1.5%
Axis Bank Select Credit Card 20 Edge Rewards per Rs. 200 spent on retail shopping.
10 Reward Points per Rs. 200 spent elsewhere.
Re. 0.20 2%
SBI SimplyCLICK Credit Card 10 Reward Points per Rs. 100 spent on Amazon, BookMyShow, Lenskart, Urbanclap, etc.
5 Reward Points on every online spend of Rs. 100.
1 Reward Point per Rs. 100 spent elsewhere.
Re. 0.25 2.5%
American Express SmartEarn Credit Card 10 Membership Rewards per Rs. 50 spent on Amazon, Flipkart & Uber.
5 Membership Reward per Rs. 50 spent on Swiggy, Paytm Wallet, Myntra, BookMyShow, PVR, etc.
1 membership Reward per Rs. 50 spent elsewhere.
Re. 0.25. 5%
Citi Rewards Credit Card 10 Reward Points per Rs. 125 spent on apparel & departmental stores.
1 Reward Point per Rs. 125 spent elsewhere.
Re. 0.30 for in-store shopping at partner brands & online shopping.
Re. 0.25 for fuel at IndianOil outlets & online travel sites.
Re. 0.35 for cashback.
2.8%
IDFC FIRST Select Credit Card 10 Reward Points per Rs. 100 spends on purchases over Rs. 20,000
6 Reward Points per Rs. 100 spent on online shopping.
3 Reward Points per Rs. 100 spent elsewhere.
Re. 0.25 2.5%
RBL Bank Shoprite Credit Card 20 Reward Points per Rs. 100 spent on groceries.
1 Reward Point per Rs. 100 spent elsewhere.
Re. 0.25 5%
HSBC Smart Value Credit Card 3 Reward Points per Rs. 100 spent on dining, telecom & online.
1 Reward Point per Rs. 100 spent elsewhere.
Up to Re. 0.37 1.11%

Annual Fee

Credit Card Annual fee Annual fee Waiver Condition (spends within 1 year)
American Express Platinum Credit Card Rs. 60,000 NA
HDFC Bank Infinia Credit Card Rs. 10,000 Rs. 8,00,000 or more
Axis Bank Magnus Credit Card Rs. 10,000 Rs. 15,00,000 or more
Standard Chartered Ultimate Credit Card Rs. 5,000 NA
HDFC Diners Club Black Credit Card Rs. 10,000 Rs. 5 lakhs or more
IndusInd Pinnacle World Credit Card Rs. 13,000 (first year only) NA
BoB Eterna Credit Card Rs. 2,499 Rs. 2,50,000
ICICI Bank Sapphiro Credit Card Rs. 3,500 Rs. 6,00,000 or more
YES First Exclusive Credit Card Rs. 9,999 Rs. 6,00,000 or more
Axis Bank Select Credit Card Rs. 3,000 Rs. 6,00,000 or more
SBI SimplyCLICK Credit Card Rs. 499 Rs. 1,00,000 or more
American Express SmartEarn Credit Card Rs. 495 Rs. 40,000 or more
Citi Rewards Credit Card Rs. 1,000 Rs. 30,000 or more
IDFC FIRST Select Credit Card Nil NA
RBL Bank Shoprite Credit Card Rs. 500 Rs. 1,00,000 or more
HSBC Smart Value Credit Card Nil NA

Other Key Features

Credit Card Welcome Bonus Lounge Access
American Express Platinum Credit Card 1,00,000 Membership Reward Points Access to over 1,200 airport lounges globally.
HDFC Bank Infinia Credit Card 10,000 Reward Points Unlimited domestic & international lounge access
Axis Bank Magnus Credit Card 1 complimentary flight ticket / Tata Cliq voucher worth Rs. 10,000. Unlimited complimentary domestic lounge access.
8 complimentary international lounge access each year.
Standard Chartered Ultimate Credit Card 6,000 Reward Points Complimentary Priority Pass membership with 1 complimentary lounge visit per month
HDFC Diners Club Black Credit Card Complimentary membership of Amazon Prime, Club Marriott, Zomato Pro, Times Prime, etc. Unlimited domestic & international airport lounge access to over 1000 lounges.
IndusInd Pinnacle World Credit Card Gift vouchers from Oberoi hotels / Bata / Vero Moda/ Pantaloons, etc. Complimentary Priority Pass Membership.
BoB Eterna Credit Card 10,000 Reward Points Unlimited domestic airport lounge access
ICICI Bank Sapphiro Credit Card Gift vouchers & benefits worth Rs. 9,000 4 complimentary domestic lounge access per quarter.
2 complimentary international lounge access per year.
YES First Exclusive Credit Card 40,000 Reward Points Complimentary Priority Pass membership with unlimited complimentary lounge visits outside India.
Axis Bank Select Credit Card Amazon gift voucher worth Rs. 2,000 6 complimentary international lounge access per year.
8 complimentary domestic lounge access every year.
SBI SimplyCLICK Credit Card Amazon gift card worth Rs. 500 NA
American Express SmartEarn Credit Card A cashback of Rs. 500 NA
Citi Rewards Credit Card Up to 2,500 Reward Points NA
IDFC FIRST Select Credit Card Gift vouchers worth Rs. 500 4 complimentary domestic lounge access each quarter
RBL Bank Shoprite Credit Card 2,000 Reward Points NA
HSBC Smart Value Credit Card Amazon voucher worth Rs. 500 3 complimentary domestic & international lounge access.

What Are Rewards Credit Cards?

Reward Credit Cards are the special type of cards that earn you rewards in the form of Reward points, Air miles, Payback points, etc on the basis of your spends. For example, a reward credit card can provide you with 10 Reward Points per Rs. 100 you spend and another card can earn you 5 Air Miles per Rs. 150 you spend.

The rewards you earn can be more or less depending on the categories where you spend. You can earn 1 Reward Point per Rs. 100 for a particular category & 5 Reward Points on spending on another category with the same credit card. The reward rate or the benefit you get in percentage can be calculated with the value of 1 Reward point, which may be different for each credit card.

How Do Rewards Credit Cards Work?

Although all the rewards credit cards earn you rewards, the redemption of those rewards can vary for each and every Rewards credit card. Some cards may allow you to redeem against anything you want and some may have specific categories to redeem the Reward Points for. One more thing to keep in mind here is: it is not necessary that a card providing 10 Reward points per Rs. 100 is better than a card providing 5 Reward Points per Rs. 100.

It is because the value of 1 Reward Point can be different for each card. Let’s say in the first card (providing 10 Reward Points), 1 RP = Re. 0.20 and in the second card, 1 RP = Re. 0.50, then the one providing fewer Reward Points is actually giving you more benefit. Moreover, with the Rewards credit cards, you can earn accelerated Reward Points in some categories. Along with these regular rewards, these cards also get you bonus reward points as a welcome gift and as milestone benefits on spending a particular amount within a pre-specified time period.

Advantages of Rewards Credit Cards

If used carefully and wisely, Rewards credit cards can be a lot more advantageous than they seem to be. Following is a list of benefits of having a rewards credit card:

  • Everyone can afford rewards credit cards as many of these cards come with a low/no annual fee.
  • You can save every time you purchase something using your credit card (except for a few transactions).
  • Rewards credit cards offer exciting welcome and renewal bonuses.
  • The reward points can be redeemed against a lot of categories, including shopping, travel-related bookings, vouchers, and even cash back.
  • Rewards credit cards don’t only provide reward points but may offer several other exciting benefits, including movie & dining benefits, travel privileges, insurance benefits, fuel benefits, and many more.

How To Redeem Credit Card Reward Points?

Every credit card can have a different process for reward redemption depending on different card issuers. Some banks/card issuers have a separate portal for reward redemption whereas others allow their customers to redeem the points through Net banking. Moreover, the categories against which you can redeem your reward points can be different for different cards. These categories can be flight/hotel bookings, shopping, gift vouchers, and many more. Not all, but some card issuers even allow you to reward points against your statement balance. While redeeming your reward points, you must keep a few things in mind which are as mentioned below:

  • Make sure that you are redeeming your points against a category on which the value of reward points is maximum. Some card issuers offer the same value of reward points for redemption against any category, but many issuers have kept different values of reward points for redemption against different categories. So, you should check for these values before redeeming your points so that you can make the best use of your earned points.
  • Check for the reward redemption fee before proceeding further with the reward redemption process and make sure that it is not more than the value of reward points you are redeeming.
  • Reward points don’t exist forever but they generally expire after a certain period. So, you must be aware of the validity of your reward points so that you can redeem them before they expire unused.

How To Maximize Credit Card Reward Points?

If you are having a rewards credit card, you might be thinking that you are making the best out of it, but most probably you are not doing so. Rewards credit cards don’t only earn you reward points on regular spends, but there are many more ways of earning thousands of reward points through these cards. If your card provides some bonus reward points as a welcome benefit, which you can earn by fulfilling some required conditions like paying a joining fee or making your first transaction within 30 days or anything. Some credit cards even offer exclusive welcome benefits as soon as you pay the joining fee. Other than the welcome bonus, you can earn a lot of reward points under the milestone programs of credit cards. To avail milestone benefits of a credit card, you will have to achieve the minimum required threshold amount within a given time period and you can earn thousands of points every year. Other than all this, you should keep checking for short-term spend-based offers to maximize your credit card rewards. Again, the most important thing to keep in mind is to choose a credit card according to your needs. Note down the categories where you spend the most and then look for a credit card that can provide you with the maximum benefit on that particular category.

Moreover, another important thing to consider here is your payment behavior. You should try paying your bills always on time and try to pay them in full each month. Some people think that making only the minimum payments will be enough, but that is not true. It doesn’t only invite high-interest charges but can affect your credit score as well. You should make sure that you are not being charged interest more than the value of reward points you earn if you want to make the most out of your rewards credit card.

How To Choose The Best Rewards Credit Card For Yourself?

Before choosing a Rewards Credit Card, you must keep the following points in mind:

  • You should analyze your spend behavior and find out the categories, where you spend the most. It is because various cards provide accelerated Reward points on some categories, and you should choose the one that is providing the most Reward Points on the categories where you spend the most.
  • Compare the fees & other charges of the credit cards and go with the one that can fulfill your requirements with minimum charges.
  • It is really important to check where you can redeem the Reward Points you earn using a particular credit card because it doesn’t make any sense if you earn thousands of points and can not redeem them against anything you require.
  • Check the validity of Reward Points and the maximum cap on the rewards you can earn.

Bottom Line

Almost all the credit cards in the market come with some or the other reward offers, but it is really important for you to choose the one that suits your requirements. Find out where you spend the most, compare credit cards on the basis of their fees and benefits and then go with the one that seems to fulfill most of your requirements. Choosing the right credit card is just the first step while entering the world of credit cards. To make your credit journey smooth and rewarding, you will have to ensure that you use your card responsibly and make all the payments on time. No matter how many reward points you earn, you will not get the maximum benefit until you have a habit of paying your credit card bill in full each month without delaying it. Also, make sure to redeem your reward points wisely. It might take a bit of research but in the end, you will be able to avail of the maximum benefits only if you choose your card wisely.

FAQs:

Although all the credit cards mentioned above are among the top rewards credit cards in India, the following two are the best out of them:

In Premium Credit Cards – HDFC Infinia Credit Card.
In Retail Credit Cards – SBI SimplyCLICK Credit Card.

Some of the Best Rewards Credit Cards with an annual fee of less than Rs. 1,000 are:

SBI SimplyCLICK Credit Card – Rs. 499
American Express SmartEarn Credit Card – Rs. 495
IDFC FIRST Select Credit Card – Nil
RBL Bank Shoprite Credit Card – Rs. 500

You can avail of 1 complimentary lounge visit every month with your Standard Chartered Ultimate Credit Card if you spend Rs. 20,000 or more in the previous month.

Yes, you can redeem your earned Reward Points against cashback at a value of 1 Reward Point = Re. 0.35 with the Citi Rewards Credit Card.

For the IndusInd Pinnacle World Credit Card, 1 Reward Point = Re. 1.

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