Credit cards offer great convenience while making payments offline and online. The best credit cards in India provide offers, rewards, and bonuses to their credit card customers. Credit card rewards are of different kinds, such as travel rewards, shopping points, bonuses, etc.

Customers can choose a credit card that gives the maximum rewards for the type of spending they do most. Before choosing the credit cards and the rewards, there are a few things you should know. 

How Do I Earn Reward Points? 

As a cardholder, you don’t need to do anything extra to earn reward points. Each time your card is swiped for a purchase, you will get reward points automatically. The cardholder earns one point per Rs. 100 to Rs. 250, which is charged from the credit card. You will earn more points for a higher value of the purchase and vice versa.

The number of points that you will collect with every purchase is based on the type of card you have and the bank issuing it. For instance, co-branded cards will fetch you more points than a regular card.

The State Bank of India Gold card will fetch you one point per Rs. 40 spent on the card, whereas the co-branded Tata card will fetch you 8 points per Rs. 100 charged to the card. The value which each point carries will also vary across banks and credit cards. 

What Are The Factors Affecting Reward Points? 

The points you earn will depend on the type of card, the bank that has issued the card, and the place where you have carried out the transaction. But, there are other factors which affect the overall points you get and their value. 

Card Variant:

Cardholders with a basic card variant will earn one or two points per transaction. On premium or super premium cards, you can earn more points on your purchases. 

Co-branded credit cards:

Banks and card organizations launch co-branded credit cards in partnership with airlines, travel companies, fuel providers, major stores, and brands. Co-branded credit cards fetch reward points which will be 5 to 10 times higher as compared to most other cards. 

Where you swipe your card

Depending on where you swipe your card, you will earn reward points. For instance: when you swipe it for an electricity bill, you will earn lesser points when compared to swiping it at a restaurant. Thus, it also depends on where you swipe it. 

Spending on special occasions

If you swipe your card to buy during special or festive occasions, you can obtain bonus points. For instance: You are entitled to extra bonus points if you swipe your card on Christmas. Premium card holders are also offered bonus points when they join. 

How to Redeem The Reward Points?

You can redeem the Credit card reward points in the two ways given below:

  • Cardholders can redeem their reward points online through the mobile application or the bank’s website. Cardholders can see and redeem their reward points under the ‘Redeem my rewards’ or ‘View my points’ section on the bank’s mobile app or website.
  • Credit cardholders can take help for redeeming reward points using the bank’s customer care helpline. 

Redemption of Expired Reward Points

Reward points expire and have an expiry date. They have to be redeemed before the expiry date. But, some premium credit cards do not have an expiry date or period on the reward points. 

Choose The Card With Suitable Rewards

Various cards offer different types of rewards. When you select the card, you should choose one with the right kind of rewards.  For example: A person who eats out frequently should choose a card that offers reward points on dining. A person who travels frequently must opt for an airline credit card.

Too Many Credit Cards For Rewards

Customers apply for multiple credit cards to increase their reward points. But, applying for too many credit cards is not good. Your bills will get piled up and you will land in a debt trap. Also, every credit card will have its own policy for redeeming rewards, which is not easy to remember. So, rewards end up expiring before they are redeemed. 

Virtual Credit Cards

Nowadays, credit card issuers provide virtual credit cards to their users. They can use this to shop on their favorite websites online. They will then be eligible for instant discounts and rewards, which they can earn immediately on high purchases. 

Unused Points

Cardholders can transfer unused points from one credit card to another or they can convert unused points into cash at a predefined conversion rate. These unused points can be redeemed to spend. 

Look At The Charges

Different cards have different ways of charging for redeeming the reward points. So, when the customer shops using reward points from the reward store, he/she will be charged. So, to avoid these, the customer should carefully read the terms and conditions.  


Using a credit card can be highly beneficial if you select the credit card with suitable reward programs and the least charges. Shop around for the most suited credit card on the website of the credit card issuer of your choice. You have to pay credit card bills without defaulting also. 

FAQS Need To Know About Credit Card Reward Offers

1:Is it worth getting a reward credit card? 

It is worth getting a reward credit card as long as you don’t carry a balance on it. Also, the rewards earned should be more than the annual fee. 

2:Is cashback better than rewards? 

Both cashback and rewards have their own benefits. Most banks automatically adjust cashback against the bill amount due. But reward points have to be redeemed against products. Most cash back cards come for specific spending categories, such as dining and entertainment. If you want to spend across all categories, then generic reward points cards are best suited. 

Loyalty/rewards points earned on a credit card and online credit which expire may not attract new TDS norms coming into impact in the subsequent month.  However, it will be applicable if these are procured through business or profession.