Credit cards are a must for almost every person nowadays. It is not just a credit limit that it offers; it comes with various features and rewards, which are the very things that make spending money more enjoyable. The most recognized kind of credit card is the reward credit card. They are not just the cheapest, but many times there is no yearly fee. Besides this, they also allow earning rewards on each of your purchases. These points can be utilized to get discounts on clothes, make payments for travel services, buy gift cards, and many other ways.
Additionally, a rewards-loaded credit card keeps users unaware of its perks. For your convenience, we’ve put up a list of salary credits in India so you may choose wisely. Our suggestions span from options to sophisticated ones detailing their benefits, amounts, and features clearly and simply.
Best Entry-Level Rewards Credit Cards
Entry-level rewards credit cards are an excellent place to start if you’re new to credit cards and want to earn rewards without paying a lot of fees or utilising sophisticated features.
SBI SimplyCLICK Credit Card
Joining Fee:
Rs. 499 + GST
Best Suited :
Shopping
Renewal Fee:
Rs. 499 + GST
Reward Type:
Reward Points
Welcome Benefits:
₹500 Amazon Gift Card
Key Features
- Receive 10 Reward Points for each ₹100 you spend at participating online retailers.
- At every ₹100 bought at Amazon and other online retailers, you can accrue 5 Reward Points.
- 1 Reward Point for all other spends of ₹100.
- Grab a ₹ 500 Amazon Welcome Voucher.
- Benefit from a 1% fuel surcharge and annual fee waiver based on spending.
*Terms and Conditions apply.
Joining Fee:
Rs. 1,000 + GST
Best Suited :
Dining and Shopping
Renewal Fee:
Rs. 1,000 + GST
Reward Type:
Reward Points
Welcome Benefits:
5,000 EDGE Reward Points on spending ₹1,000 within 30 days
Key Features
- 2 EDGE Reward Points per ₹125 spent.
- 10x EDGE Reward Points on apparel and departmental store purchases.
- ₹1,000 worth of membership benefits annually.
- Discounts on Swiggy and partner restaurants.
- Complimentary domestic lounge access.
*Terms and Conditions apply.
Joining Fee:
Nill
Best Suited :
Travel and Shopping
Renewal Fee:
Nill
Reward Type:
Reward Points
Welcome Benefits:
Vouchers worth ₹500 on spending ₹15,000 within 90 days
Key Features
- 3x Reward Points per ₹100 on offline spends up to ₹20,000.
- 6x Reward Points for purchases made online.
- 10 times Reward Points are awarded for birthdays and purchases over ₹20,000.
- Monthly, there are two complimentary movie tickets as well as access to the lounge.
*Terms and Conditions apply.
Standard Chartered Rewards Credit Card
Joining Fee:
Nil
Best Suited :
Shopping
Renewal Fee:
Rs. 1,000 + GST
Reward Type:
Cashback
Welcome Benefits:
Not Applicable
Key Features
- 4x Reward Points on retail spends.
- Based on government and insurance spending, earn one reward point.
- Free access to the domestic lounge.
- A waiver of the 1% fuel surcharge and the renewal fee.
*Terms and Conditions apply.
American Express SmartEarn Credit Card
Joining Fee:
Rs. 495 + GST
Best Suited :
Shopping
Renewal Fee:
Rs. 495 + GST
Reward Type:
Reward Points
Welcome Benefits:
₹500 Cashback and 2,000 Referral Bonus Membership Rewards Points
Key Features
- You can earn 10 Membership Rewards Points for every ₹50 spent on Amazon, Flipkart and Uber rides up to a maximum of 500 Points.
- For other categories, you can enjoy 5 Membership Rewards Points for every ₹50 spent.
- A 1% fuel surcharge waiver and gift vouchers on milestone spending.
*Terms and Conditions apply.
Top Premium Rewards Credit Cards
Premium rewards credit cards provide an upgraded experience for individuals looking for outstanding advantages and exclusive incentives.
1. Axis Bank Magnus Credit Card
| Card Name: | Axis Bank Magnus Credit Card |
| Initial Fee: | ₹12,500 + GST |
| Annual Fee: | ₹12,500 + GST |
| Ideal For: | Travel, Dining, and Shopping |
| Rewards: | Reward Points |
| Welcome Offer: | Gift voucher worth ₹12,500 from Luxe, Yatra, or Postcard Hotels |
Features include:
- 12 Edge Reward Points per ₹200 spent.
- 25,000 Edge Reward Points worth ₹5,000 on monthly spends of ₹1 lakh.
- 5x Edge Reward Points on travel bookings through Axis Bank Travel Edge portal.
- Complimentary access to international and domestic lounges, VIP airport services, and Dine Out Passport membership.
2. HDFC Bank INFINIA Metal Credit Card
| Card Name: | HDFC Bank INFINIA Metal Credit Card |
| Initial Fee: | ₹12,500 + GST |
| Annual Fee: | ₹12,500 + GST |
| Ideal For: | Travel, Dining, and Shopping |
| Rewards: | Reward Points |
| Welcome Offer: | 12,500 Reward Points and Club Marriott membership |
This high-end card offers:
- 5 Reward Points per ₹150 spent.
- 5x Reward Points on flight and bus bookings and 10x Reward Points on hotel bookings via Smartbuy.
- Complimentary golf games, Club Marriott membership, and Dine Out Passport membership.
3. Standard Chartered Ultimate Credit Card
| Card Name: | Standard Chartered Ultimate Credit Card |
| Initial Fee: | 5,000 + GST |
| Annual Fee: | 5,000 + GST |
| Ideal For: | Travel and Shopping |
| Rewards: | Reward Points |
| Welcome Offer: | 6,000 Rewards redeemable for shopping vouchers or charity |
Features include:
- 5 Reward Points per ₹150 spent on all categories.
- 5% extra cashback on purchases made without duty.
- Free golf matches, little currency conversion charge, round-the-clock security services.
4. American Express Platinum Charge Card
| Card Name: | American Express Platinum Charge Card |
| Initial Fee: | ₹60,000 + GST |
| Annual Fee: | ₹60,000 + GST |
| Ideal For: | Travel and Shopping |
| Rewards: | Reward Points |
| Welcome Offer: | Vouchers worth ₹45,000 and 10,000 Referral Bonus Membership Rewards Points |
This premium card offers:
- 1 Membership Rewards Point per ₹40 spent.
- 5x Membership Rewards Points through the Reward Multiplier Program.
- Invitations to exclusive events and complimentary airport lounge access.
5. HDFC Bank Diners Club Black Metal Edition Credit Card
| Initial Fee: | ₹10,000 + GST |
| Annual Fee: | ₹10,000 + GST |
| Ideal For: | Travel, Dining, and Shopping |
| Rewards: | Reward Points |
| Welcome Offer: | Club Marriott, Swiggy One, and Amazon Prime memberships on spends of ₹1.5 lakh within 90 days |
Features include:
- 5 Reward Points per ₹150 spent.
- Up to 50 Reward Points on travel bookings through SmartBuy.
- Complimentary unlimited airport lounge access and golf games.
6. RBL Bank ShopRite Credit Card
| Card Name: | RBL Bank ShopRite Credit Card |
| Initial Fee: | ₹500 + GST |
| Annual Fee: | ₹500 + GST |
| Ideal For: | Shopping |
| Rewards: | Reward Points |
| Welcome Offer: | 2,000 bonus Reward Points |
The RBL Bank ShopRite Credit Card is an excellent choice for those who want to maximise savings on everyday purchases. Key features include:
- 20 Reward Points per ₹100 spent on grocery shopping.
- 10x Reward Points per ₹100 on fuel purchases.
- 1 Reward Point per ₹100 on all other transactions.
- 10% discount on movie tickets up to 15 times a year.
- 1% fuel surcharge waiver and a spend-based renewal fee waiver.
7. Bank of Baroda Eterna Credit Card
| Initial Fee: | ₹2,499 + GST |
| Annual Fee: | ₹2,499 + GST |
| Ideal For: | Shopping |
| Rewards: | Reward Points |
| Welcome Offer: | 6-month FitPass Pro membership worth ₹15,000 and 10,000 bonus Reward Points |
This card offers substantial rewards and benefits:
- 15 Reward Points per ₹100 spent on shopping, travel, dining, and movie spends.
- 3 Reward Points per ₹100 on all other spending categories.
- Complimentary FitPass Pro membership and golf rounds.
- Up to 20,000 bonus Reward Points on milestone spending.
- Accidental death cover of ₹1 crore and a 1% fuel surcharge waiver.
8. YES Bank First Exclusive/RESERV Credit Card
| Initial Fee: | ₹1,999 + GST |
| Annual Fee: | ₹1,999 + GST |
| Ideal For: | Travel and Shopping |
| Rewards: | Reward Points |
| Welcome Offer: | Not Applicable |
There are several appealing features available with the YES First Exclusive Credit Card.
- 6 Reward Points per ₹200 spent in select categories like transportation, utility bills, and insurance payments.
- 12 Reward Points per ₹200 on all other spends.
- 10X Reward Points on purchases from Amazon, Myntra, Flipkart, and for flight bookings.
- 30,000 bonus reward points for renewals annually, and an extra 20,000 points for reaching spending milestones.
- Complimentary Priority Pass membership and unlimited visits to international airport lounges.
- Complimentary golf games up to 4 times a year.
Reward Point Structures of Top Credit Cards in India
You can optimise your return on investment by comparing reward points offered by the best credit cards available in India.
1. The Platinum Credit Card from American Express
You can see a well-organised reward point system by the American Express Platinum Credit Card. Under the Rewards Multiplier Program, for every ₹40 spent, you receive 5 Membership Reward Points. For every ₹40 spent on foreign purchases, you earn 3 Reward Points. For any other deal, the card offers one reward point for every ₹40 spent. Achieving an aggregate reward score of 3.125% is possible, with each reward point worth ₹0.25.
2. Infinia Credit Card from HDFC Bank
You can accrue 5 Reward Points with the HDFC Bank Infinia Credit Card on each ₹150 you spend on retail transactions. Each Smartbuy point is worth ₹1 for hotel and airfare reservations, ₹0.50 for merchandise and gift cards, and ₹0.30 for cashback. 3.3% is a competitive reward rate offered by this card.
3. Credit Card Magnus from Axis Bank
When you use the Axis Bank Magnus Credit Card to make travel reservations on websites like Yatra and MakeMyTrip, you will receive 24 Edge Rewards. You receive 12 Edge Rewards for every ₹200 spent on other things. At ₹0.20 apiece, each Edge Reward offers a 2.4% reward rate.
4. The Standard Chartered Ultimate Credit Card
Using the Standard Chartered Ultimate Credit Card, you can get five reward points for every ₹150 spend. Since each point is worth ₹1, the reward rate is a strong 3.33%. People who regularly use their cards for a variety of transactions will find this framework useful.
5. Black Metal Credit Card from HDFC Diners Club
You can accumulate 5 Reward Points with the HDFC Diners Club Black Metal Credit Card for every ₹150 spent on non-essential items. The price per point for flights and hotels booked through Smartbuy is ₹1, for merchandise and coupons it is ₹0.50, and for cashback, it is ₹0.30. As a result, the entire reward rate comes to 3.3%.
6. The Eterna Credit Card from Bank of Baroda (BoB)
At 15 Reward Points for every ₹100 spent on eating, travel, internet shopping, and overseas transactions, the BoB Eterna Credit Card has an excellent reward rate. You receive three reward points for every ₹100 spent in other purchasing categories. There’s an aggregate reward rate of 3.75%, with each point valued at ₹0.25.
7. Credit Card Sapphiro from ICICI Bank
Using the ICICI Bank Sapphiro Credit Card, you may earn 3 PAYBACK Points for every ₹100 you spend at home and 6 PAYBACK Points for every ₹100 you spend abroad. The reward rate is 1.5% with a value of ₹0.25 for each PAYBACK Point.
8. Axis Bank Credit Card Select
20 Edge Rewards are awarded to you by the Axis Bank Select Credit Card for every ₹200 you spend on retail purchases. You receive 10 Reward Points for every ₹200 spent in other categories. With an average value of ₹0.20 for each Edge Reward, there is a 2% reward rate.
9. The SBI SimplyCLICK Credit Card
Earn 10 Reward Points for every ₹100 spent at specific online shops like Apollo 24×7 and BookMyShow when you use the SBI SimplyCLICK Credit Card. Get one reward point for every ₹100 spent globally, and five are for all other online transactions. There is a 2.5% reward rate because each point is worth ₹0.25.
10. The SmartEarn Credit Card from American Express
The American Express SmartEarn Credit Card rewards wealthy individuals with 10 Membership Rewards Points each ₹50 spent on select sites, including Zomato and Uber. Every ₹50 you spend on Amazon and Paytm Wallet earns you 5 Membership Rewards. The rate for every other purchase is 1 Membership Reward for every ₹50, with a high reward rate of 5% and a point value of ₹0.25.
11. Credit Card with Axis Bank Rewards
Earning two EDGE reward points for every ₹125 spent is possible with the Axis Bank Rewards Credit Card. You receive ten times more EDGE reward points for every ₹125 spent in particular categories, such as clothing and department stores. After redemption, each point is worth ₹0.20. There is a 16% reward rate, with ten reward points worth one air mile.
12. The IDFC FIRST Select Credit Card
When you spend more than ₹20,000, the IDFC FIRST Select Credit Card gives you ten reward points for every ₹100 you spend. Per ₹100 spent on online shopping, you will receive six reward points and ₹100 spent on other goods, you will receive three. With a point value of ₹0.25, a 2.5% reward rate is attained.
13. Shoprite Credit Card from RBL Bank
Grocery shopping is rewarded with the RBL Bank Shoprite Credit Card, which offers 20 Reward Points for every ₹100 spent. Other types of purchases receive 1 Merit Point for every ₹100 spent. With a high payout rate of 5%, every point is worth ₹0.25.
14. Credit Card from Standard Chartered Rewards
On every ₹150 spent, the Standard Chartered Rewards Credit Card delivers 4x bonus points on retail purchases and 1x incentive on insurance and government costs. Every purchase you make after you exceed the monthly spend cap earns four times as many reward points. Points can be used at ₹0.25 each within the Incentives catalogue and ₹0.20 for statement balance changes, giving a reward rate of 2.6%.
Understanding Rewards Credit Cards
Rewards credit cards are designed on the principle of returning something to you against your purchase. Every transaction you make with these credit cards earns you points or rewards. Later, these accumulated points can be utilised to grab discounts on shopping, booking travel, and getting gift vouchers. The basic underlying idea behind these credit cards is to keep adding value through day-to-day spending so that with each transaction, savings are made.
How do reward cards function?
Rewards credit card earns you a certain number of points for the amount you spend on swiping. Normally, you get a certain number of points per rupee spent; for instance, 1 point for ₹100 spent. A few cards give you rates in specific categories: dining, travel, etc.
These points may be redeemed, once you have earned enough, for example, by using the available options of your card issuer, which can even include discounts, gift cards, or travel perks.
Choosing a Reward Credit Card Made Easy
When you choose a reward credit card, you should keep a few things in mind:
- Rate: Look for cards that give more points in categories where you spend the most.
- Annual Fees: Some cards charge yearly fees; one should cover that cost by redeeming a reward from the card.
- Welcome Bonus: With some cards, additional perks are available; one must consider these in their selection.
- Redemption Options: You must know how and where you can use your points and whether the options fit into your priorities.
- More Benefits: Some additional benefits include travel insurance, lounge access, and dining concessions.
Advantages of Rewards Credit Cards
Rewards credit cards have several great benefits. Here’s a quick snapshot of some key pros:
- Annual Fees Low or None: A lot of reward cards have low or no annual fees, which makes them easily accessible and reasonably priced.
- Earning on Almost Every Transaction: Turn regular spending into rewards by earning points or money on almost every transaction.
- Welcome Bonuses: Reap significant sign-up incentives upon fulfilling the minimum spending requirements or completing your first transaction.
- Extra Benefits: Receive special entertainment offers, eating discounts, gasoline savings, and insurance for your trip.
- Milestone Rewards: Reach spending targets to accrue additional points or incentives all year long.
- Exclusive Offers and Promotions: Take advantage of unique offers and promotions to increase your reward points.
- Travel Benefits: Take advantage of benefits associated with travelling, like priority boarding, lounge access, and travel insurance.
- Purchase Protection: Get longer guarantees and protection from purchases on products you buy with the card.
- Financial Flexibility: You can get some financial relief by using reward points to pay down your credit card debt.
How Points from Credit Cards Can Be Redeemed
The terms of the credit card and the issuer can affect how reward points can be redeemed. The following is detailed advice on maximising your reward points:
1. Recognize Your Options for Redemption
Begin by knowing the many ways to redeem your points. Usually, credit card companies provide a selection of redemption choices, such as:
- Statement Credit: Credit points straight to the amount on your card.
- Gift Cards: Exchange your points for gift cards to a variety of stores.
- Travel: Use your points to reserve hotels, and hire cars and flights.
- Merchandise: Use your points to buy things from an online or catalogue retailer.
Selecting the one that offers you the highest return on investment is crucial because each might give you a distinct value for your points.
2. Verify Redemption Percentages
Your points may have varying values for different redemption categories. Points used toward vacation, for example, may be worth more than points used toward purchases. Check the redemption rates to know you’re getting the most out of your points before making a redemption.
3. Recognize Fees
Redeeming points may come with a cost from some credit card issuers, especially for specific rewards. Ensure that any redemption costs don’t exceed the value of the points you redeem by always checking for them.
4. Expiration of Track Point
Most reward points have a time limit on them. Keep an eye on the points’ validity terms and redeem them before they expire to prevent losing them. Points on certain cards are perpetual, however, this isn’t always the situation.
How to Get the Most Out of Your Credit Card Points
Accessing all available options and making wise spending decisions are key to optimising your rewards. Here are some tips to improve your rewards experience:
1. Recognize the Categories of Your Spending
Analyse your spending patterns to find out where you spend the most money. Credit cards with rewards can offer accelerated points in areas like eating, travel, and groceries. To earn the most points, choose a card that corresponds with your shopping preferences.
2. Make use of milestone and welcome bonuses
Make the most of your milestone prizes and welcome incentives. Many credit cards have sizable bonuses for hitting annual spending thresholds or fulfilling first-time spending restrictions. To receive the additional points or money, fulfil these prerequisites.
3. Keep an eye on temporary offers
Credit card companies frequently conduct promotions that can greatly increase the points you accrue. To benefit from additional benefits, check for these temporary promotions and use your card for eligible purchases.
4. Make a Full Payment of Your Balance
Make sure you pay off the entire balance on your credit card each month to prevent incurring interest charges, which might reduce the value of your rewards. Making the minimum payment could lead to enormous interest expenses that cancel out potential gains.
5. Pick the Correct Card
Select a rewards card based on how you spend money and how you live. While some cards are better suited for everyday spending, others provide better benefits for travel. Consider your requirements and choose a credit card that offers the best rewards in the areas where you spend the most.
Faqs
Q1. Are points earned through rewards taxable?
Ans: Points or cashback obtained by using a credit card are typically nontaxable income. For tailored assistance, it’s advisable to see a tax professional.
Q2. What does a rewards credit card sign-up bonus entail?
Ans: A sign-up bonus is an incentive given to new cards that meet certain spending requirements within a predetermined time frame.
Q3. I have multiple credit cards. Can I combine my rewards?
Ans: Most of the time, incentives from various cards cannot be combined. However, you may obtain more from each card’s benefits by using its rewards separately.
Q4. How can I monitor my points for rewards?
Ans: Most credit card providers offer platforms or mobile applications that you may use to keep track of your purchases and reward point balance.
Q5. Are there credit cards that provide rewards without charging an annual fee?
Ans: There are rewards credit cards available with no annual fee although their reward structures may differ from those of cards that impose an annual fee.