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Best Reward Credit Cards to Maximize Your Benefits

Every time you use your credit card, you should be earning more than just a statement balance. That’s where reward credit cards come in, these powerful financial tools let you earn reward points, bonuses, offers and redemption opportunities on everyday purchases. Whether you shop online, dine out, book travel or pay bills, the right reward card can turn your spending into savings, gifts, or experiences.

What Is a Reward Credit Card?

A reward credit card is a type of credit card that gives you reward points for every eligible transaction you make. Unlike cashback cards that return a portion of your spend as cash, reward cards let you accumulate points that can be redeemed for:

  • Gift vouchers
  • Merchandise or gadgets
  • Travel tickets and hotel bookings
  • Statement credits
  • Cashback (on select programs)
  • Discount vouchers for popular platforms

Every bank or issuer has its own reward program, point valuation, and redemption catalog but the core idea is simple: spend more, earn more, redeem smarter.

How Reward Credit Cards Work

Reward credit cards work on a basic mechanism:

  • You use your card for purchases
  • The card issuer awards reward points based on your spend category (e.g., groceries, dining, fuel, travel)
  • Points accumulate in your reward account
  • You redeem points through the bank/issuer rewards portal for benefits

Different cards offer different rates such as 2x or 5x points on specific categories, and a flat rate on others.

Why Reward Credit Cards Are Popular in India

Reward cards are among the most searched credit card category in India because they offer:

  • Value on everyday spending
  • Flexibility in redemption
  • Perks like dining offers, airport lounge access, fuel surcharge waiver
  • Bonus points during festivals and sale seasons

Reward credit cards make financial sense for people who use their card frequently and pay their dues on time.

Top Benefits of Reward Credit Cards

Earn Reward Points on Everyday Spends

From groceries to pharmacy, dining to utilities, reward cards let you earn points on nearly every eligible transaction.

Example:

  • 5 reward points per ₹100 on online shopping
  • 10 reward points per ₹100 on dining
  • 1 reward point per ₹100 on other spends

This means every rupee you spend becomes an opportunity to earn.

Bonus Points & Milestone Rewards

Many reward cards offer welcome bonus points (when you spend a certain amount in the first 30–60 days) and milestone rewards (extra points when you cross annual spend thresholds).

For example:

  • Get 5,000 bonus points if you spend ₹1,00,000 in a year
  • Get additional points during festive sale months

Flexible Reward Redemption

Reward points can be redeemed for a variety of benefits:

  • Gift cards from Amazon, Flipkart, or lifestyle brands
  • Flight tickets or hotel bookings
  • Statement credits to reduce your bill
  • Merchandise or gadgets from the bank rewards store

Redemption options give you flexibility that goes beyond simple cashback.

Reward Points on Utility and Subscription Payments

Many reward cards now offer points on:

  • Mobile and DTH bill payments
  • OTT and subscription services
  • Insurance and healthcare payments

This means you earn even on non-shopping spends.

Enhanced Lifestyle Perks

Reward credit cards often come with bonus perks:

  • Dining discounts and cash backs
  • Airport lounge access
  • Fuel surcharge waivers
  • Concierge services
  • Partner merchant offers

These add real value beyond the points you earn.

How Many Reward Points Can You Earn?

This varies by card and issuer, but typical reward structures include:

Spend Category Reward Points per ₹100
Dining 5–10 points
Online Shopping 4–8 points
Travel 5–10 points
Grocery 2–5 points
All Other Purchases 1–2 points

Some premium cards even offer up to 10x points on specific categories, making them ideal for heavy spenders.

How to Choose the Best Reward Credit Card

When picking a reward card, consider:

Reward Rate & Categories

Look at points per ₹100 and where you spend most (travel, dining, shopping).

Redemption Flexibility

Choose cards with easy and valuable redemption options — high point value when redeeming for travel or vouchers.

Fees vs Rewards

Some cards charge annual fees — make sure the points and perks outweigh the costs.

Bonus & Milestone Benefits

Cards with welcome bonuses or milestone rewards might offer greater overall value.

Reward Expiry Policy

Check how long your points are valid — longer validity means more time to redeem for bigger rewards.

Maximising Reward Points: Smart Tips

Spend on High-Reward Categories

Put groceries, dining, travel, and online shopping on your reward card to earn more points.

Combine Bank & Merchant Offers

Use discount offers from banks and merchants during sales for double benefits.

Redeem Points Strategically

Redeem points for high-value options like flights or gift cards — not just small statement credits.

Track Reward Expiry

Reward points have expiry dates — redeem before they lapse.

Pay Your Bill on Time

Late payments can reduce your reward point benefits — and add interest costs.

Reward Cards vs Cashback Cards

Feature Reward Credit Card Cashback Credit Card
Rewards Earned Reward points Cashback amount
Redemption Options Flexible (vouchers, travel, gifts, statement credit) Statement credit or bank account
Best For Long-term point accumulation and redemptions Direct cash savings
Value per ₹100 Spend Varies Usually fixed percentage
Perks & Benefits Often higher Basic

Both have their place, but reward cards are best for frequent spenders who like flexibility and lifestyle perks.

Common Reward Redemption Options

Flight & Hotel Bookings

Use points to book domestic flights or hotel stays.

Gift Vouchers & Shopping Deals

Redeem points for vouchers from Amazon, Flipkart, Myntra, etc.

Statement Credit

Convert points into credit to reduce your monthly bill.

Merchandise or Gadgets

Choose from a catalogue of products in the bank’s reward portal.

Reward Points Expiry

Always check expiry terms:

  • Many banks give 2–3 years validity
  • Some categories have separate validity
  • Redeem early to avoid losing hard-earned points.

How Reward Points Are Valued

Points usually follow a conversion chart. Example:

1 reward point = ₹0.25–₹0.50 value
So 10,000 points can be worth ₹2,500–₹5,000 depending on redemption type.

Premium cards and travel redemptions often offer higher point value.

Fees You Should Know

Some reward cards have:

  • Annual fees
  • Renewal fees
  • Reward redemption charges (minimal)

Choose a card where estimated benefits exceed costs.

Reward Cards for Different Types of Users

For Frequent Shoppers

Choose cards with high points on retail and online spends.

For Travellers

Look for travel partners, air miles and bonus travel perks.

For Food Lovers

Dining reward cards give extra points on restaurants and delivery.

For Everyday Bills

Cards that reward bill and utility payments add value on non-retail spends.

How to Apply for a Reward Credit Card

Check Your Eligibility

Use Credyfi to check offers based on your income and credit profile.

Compare Reward Rates

Look at earn rates, bonus points and redemption options.

Apply Online

Submit your application quickly with minimal documents.

Activate & Use

Use the card strategically to maximise your rewards.

Reward Points Safety & Tips

Reward programs are safe. Just remember:

  • Never overspend just to earn points
  • Pay your bill in full every month
  • Track reward offers and expiry dates

Frequently Asked Questions (FAQs)

What is a reward credit card?
A card that gives reward points for eligible spends which you can redeem for various benefits.

How can I redeem reward points?
Through the bank’s online redemption portal or partner offers.

Do reward points expire?
Yes, points typically expire within 2–3 years depending on the bank.

Is it better to have a reward card or cashback card?
It depends on your spending pattern — reward cards are great for frequent spenders; cashback cards are simple and direct.

Can I earn reward points on all purchases?
Most purchases earn points, but some categories may be excluded (like cash advances).

Tips to Maximise Your Reward Credit Card Benefits

  • Use cards during festive offers and bonus point promotions
  • Combine reward points with bank discount offers
  • Redeem for high-value options like travel or gift vouchers
  • Track reward categories and spend accordingly