When you swipe credit card to spend money, you get points as part of a rewards system used by many credit card companies to incentivize spending. When you use your card over a period of time and accumulate a certain number of points, you can redeem them for a variety of options including vouchers, merchandise, air miles or cash credit into your statement. Here’s a breakdown of how they work:
How You Earn Points
When you use a credit card for purchases, you earn reward points. The earning rate depends on:
- Card type – Basic cards may earn 1 point per ₹100 spent; premium ones may offer more.
- Category of spend – Some cards offer higher points on specific categories:
- 5x or 10x on dining, groceries, fuel, travel, or online shopping
- Bonus points for utility bills, insurance payments, etc.
- Offers & bonuses – Banks often run promotions with extra points for spending during festivals, online sales (like Flipkart/Amazon), etc.
Example: HDFC’s Millennia or Regalia cards offer different points per ₹100 on smartbuy, dining, travel, etc.
How You Redeem Points
You can redeem points collected using credit card in a few different ways, depending on the card issuer:
- Travel – Flights, hotels, rental cars (often best value here).
- Cash back – Statement credits or direct deposits.
- Gift cards – Various retailers.
- Shopping – Use points at checkout (e.g., on Amazon).
- Transfers – Move points to airline or hotel loyalty programs (potentially very valuable).
Lets read more ways to redeem points:
Online Redemption:
- Log into your bank’s online banking portal or mobile app: Use your user ID and password.
- Navigate to the Rewards or Redemption section: Look for a section dedicated to redeeming your credit card points.
- Browse the reward catalog: Explore the available options, which may include gift vouchers, merchandise, air miles, or cash credit.
- Select your desired reward: Choose the reward you want and add it to your cart.
- Confirm your order: Review your selections and finalize the redemption process.
Offline Redemption (Contacting Customer Service):
- Contact your bank’s customer service: Call their helpline or visit their website’s contact form.
- Provide your credentials and request redemption: You’ll likely need to verify your identity and specify which reward you want to redeem.
- Download and submit a redemption form (if required): Some banks may require you to download and complete a form, which you can then submit via email or mail.
Best Cashback & Shopping Credit Cards
To maximize the benefits of a credit card, it is essential to choose a card that aligns with your lifestyle and spending patterns. With hundreds of options in the market, finding the right fit can be overwhelming. Following are the credit cards which offer best cashback against shopping.
| Credit Card | Joining Annual Fee | Key Benefits |
|---|---|---|
| SBI Cashback Card | ₹999 | 5% cashback on major online platforms like Amazon, Flipkart, Myntra, Tata CLiQ; 1% on other spends. Cashback auto-credited within 3 days of statement generation. |
| HSBC Live+ Credit Card | ₹999 | 10% cashback on dining, food delivery (Swiggy, Zomato), and groceries (Bigbasket); 1.5% on other spends; 4 domestic lounge visits/year. |
| Axis Bank ACE Credit Card | ₹499 | 5% cashback on bill payments via Google Pay (Android only); 1.5% unlimited cashback on other spends; 8 domestic lounge visits/year. |
| ICICI Amazon Pay Credit Card | ₹0 | 5% cashback for Amazon Prime members, 3% for non-Prime on Amazon; 1% on other spends; no annual fee. |
Best Rewards Credit Cards
| Credit Card | Joining Annual Fee | Key Benefits |
|---|---|---|
| HDFC Regalia Gold Credit Card | ₹2,500 | 4 reward points per ₹150 spent; complimentary lounge access; dining and travel benefits. |
| SBI Prime Credit Card | ₹2,999 | 2 reward points per ₹100 spent; milestone benefits; lounge access; utility bill payments earn rewards. |
| Axis Bank SELECT Credit Card | ₹3,000 | 10 EDGE reward points per ₹200 spent; exclusive dining and lifestyle privileges. |
Best Travel Credit Cards
| Credit Card | Joining/Annual Fee | Key Benefits |
|---|---|---|
| Axis Bank Atlas Credit Card | ₹5,000 | Earn miles on every spend; complimentary lounge access; travel insurance benefits. |
| Amex Platinum Travel Credit Card | ₹3,500 | Accelerated rewards on travel bookings; Taj vouchers; 2 domestic lounge visits/quarter. |
| Marriott Bonvoy HDFC Credit Card | ₹3,000 | Complimentary Silver Elite status; free night award; accelerated points on Marriott spends. |
Best Fuel Credit Cards
| Credit Card | Joining/Annual Fee | Key Benefits |
|---|---|---|
| IndianOil RBL Bank XTRA Card | ₹499 | 7.5% value back on IndianOil fuel spends; fuel surcharge waiver; reward points redeemable for fuel. |
| BPCL SBI Credit Card | ₹499 | 3.25% value back on BPCL fuel spends; 1% fuel surcharge waiver; reward points on groceries and dining. |
| IDFC First HPCL Power+ Card | ₹499 | 5% savings on HPCL fuel spends; 4 domestic lounge visits/year; reward points on all spends. |
Best Premium Credit Cards
| Credit Card | Joining/Annual Fee | Key Benefits |
|---|---|---|
| HDFC Infinia Credit Card | ₹12,500 | Unlimited lounge access worldwide; 5 reward points per ₹150 spent; concierge services; golf benefits. |
| Axis Bank Magnus Credit Card | ₹10,000 | 12 EDGE reward points per ₹200 spent; complimentary domestic and international lounge access; travel and dining privileges. |
| ICICI Emeralde Credit Card | ₹12,000 | Unlimited lounge access; wellness and spa benefits; 24×7 concierge; golf privileges. |
Note: Fees and benefits are subject to change. It’s advisable to check the latest terms and conditions on the respective bank’s official website before applying.
