Best Reward Credit Cards in india (2024)

Rewards credit cards provide a fantastic opportunity to earn reward points and explore various redemption options. These points not only help you save money but also enhance your credit card experience.

You can accumulate significant reward points through spending in popular categories such as online shopping, travel, dining, and more. The diverse range of options available for redeeming these points adds to the excitement of using these cards.

Types of Reward Credit Cards

A variety of Reward credit cards are at your disposal, each offering a unique array of rewards and benefits. Below, you'll find some of the top categories of reward credit cards:

• Cashback cards: These cards provide cash rewards for transactions made using the card, usually offering a cashback rate of 1-2% on all purchases. Certain cards may even offer increased cashback rates for purchases in specific categories like gas, groceries, or dining.
• Points cards: These cards provide points for transactions made using the card, which can be exchanged for a diverse range of rewards including travel, merchandise, or gift cards. Points cards may also offer additional points for purchases in specific categories or from particular merchants.
• Miles cards: These cards provide rewards in the form of miles or travel points, allowing you to redeem them for exciting benefits like flights, hotel accommodations, and various travel expenses. Miles cards often come with the added perk of bonus miles for purchases in specific categories, such as airfare or hotel bookings.
• Co-branded cards: These cards are established in collaboration with a particular retailer, airline, or hotel brand, providing exclusive rewards and perks tailored to that specific brand. These co-branded cards may include benefits like complimentary hotel stays, airline miles, or discounted purchases within the brand's realm.
• Flexible rewards cards: These cards provide cardholders with unparalleled flexibility in redeeming their points or miles for a diverse range of rewards, including travel, merchandise, or statement credits.

Consider your spending habits, desired rewards, and any associated fees such as annual fees or foreign transaction fees when choosing a reward credit card. Comparing various options and thoroughly reviewing the terms and conditions will help you find the perfect card that suits your needs

Eligibility Criteria for Rewards Credit Cards?

The eligibility requirements for rewards credit cards can vary, typically encompassing factors such as reaching a minimum age (18 or 21), demonstrating a sufficient income, maintaining a good credit score, and practicing responsible credit habits. Some cards may also specify certain occupations as a prerequisite, underscoring the importance of thorough verification before applying.

Advantages and Disadvantages of Rewards Credit Cards

Every credit card comes with its own set of advantages and disadvantages. Ultimately, it's all about how you utilize it that determines its true value.

When opting for a rewards credit card, take into account the following list of pros and cons to assist you in finding the perfect fit effortlessly:

Pros

• Rewards cards make purchases cost less: Who wouldn't want to earn back 2%-5% of their spending on purchases? That's the beauty of rewards credit cards – they give you a portion of your expenses back, allowing you to save up and reap the benefits if used wisely.
• Sign-up Bonuses: Rewards credit cards entice users with enticing bonus or welcome rewards upon card activation, subject to meeting specific criteria set by the issuer. These criteria may include paying a joining fee or reaching a minimum spending requirement within a specified timeframe.
• Additional Benefits: Access to domestic and international airport lounges, personalized concierge services, exclusive event invitations, and a plethora of additional perks complement the core benefits of rewards credit cards. These extra advantages not only prove to be useful but also elevate your overall cardholder experience.
• They enable you to travel more frequently or in greater comfort for less money: Travel credit cards offer a fantastic chance to elevate your travel experiences! With the ability to redeem points for flights and hotel accommodations, access exclusive airport lounges, and enjoy discounts, these cards can truly enhance your adventures.
• They can protect you if your vacation falls through: Travel insurance is a valuable perk that comes with using a rewards credit card. Depending on the type of card you choose, you can enjoy this additional benefit that covers loss/theft of luggage, booking cancellations, accidents, and more. This coverage can prove to be a lifesaver in unforeseen circumstances during your travels.

Cons

• Rewards cards typically have higher APRs: Rewards credit cards often come with higher APRs compared to non-rewards cards. This is due to credit card issuers utilizing the interest charged on carried-over balances to offset the costs of providing rewards to cardholders. Typically, rewards cards with more robust rewards programs, such as those offering higher earning rates or valuable perks, tend to have higher APRs. It's crucial to bear in mind that the interest rates can vary significantly based on the specific card and the creditworthiness of the cardholder when comparing rewards credit cards based on their APRs. It's also essential to consider the benefits and costs of the rewards program itself, including annual fees, foreign transaction fees, and any restrictions on earning and redeeming rewards. In the end, the key factor in selecting the right rewards credit card lies in aligning it with your personal spending patterns and travel aspirations. Even if a rewards credit card comes with a higher APR, it can still be a valuable choice if the benefits and privileges it offers surpass the interest costs on carried balances.
• Annual Fees Add up: Credit cards often come with an annual fee, which can be a bitter pill to swallow. If your spending habits don't exceed this fee and earn you enough points, the annual cost could end up canceling out any rewards you earn, turning your card into nothing more than a tool for splurging.
• Rewards Caps: The allure of enticing rewards may seem endless, but every good thing must come to a halt. While one credit card may offer you 5x points on online purchases, another might boost it to 10x – yet, there's a limit to how much you can earn. This cap on rewards serves as a boundary to the benefits you can extract from your card.

How to Compare Rewards Cards

Compare credit cards based on factors like annual fees, benefits, and foreign transaction fees to determine the best option, avoiding unnecessary applications.

• Annual fee: Annual fees are crucial to compare. Most highly rewarding credit cards charge an annual membership fee. So, check for: Which rewards credit card offers the lowest annual fee? Do the benefits of a rewards credit card with a low annual fee align with your needs? Is your annual spending exceeding the fee by a significant margin? Do the potential reward points outweigh the cost of the fee?
• Sign-up Bonus: Sign-up bonuses vary, with some requiring a certain spend within the first months for lucrative rewards. Check each card's criteria to find the best fit for you.
• Foreign Transaction Fees: Foreign transaction fees, typically around 3%, vary by issuer and card type. Some cards waive these fees for foreign purchases. Check foreign transaction fees for cards if you shop internationally.
• Perks: Compare rewards credit cards based on the perks they offer, ensuring they align with your needs and maximize benefits.
• Automatic Credit for Travel Expenses: Travel rewards credit cards offer automatic credit for travel expenses, eliminating the need to redeem rewards. Check for qualifying expenses, restrictions, and potential fees. Note that not all cards may offer this feature.
• Reimbursement for TSA Precheck and Global Entry: Traveling to a different country can often be a chaotic experience, with long lines, check-ins, and security procedures adding to the stress. Fortunately, some credit card providers offer complimentary access to TSA Precheck and Global Entry. These programs are specifically designed to streamline the screening process and provide expedited entry at airports, making your travel experience smoother and more efficient. Many cardholders can have these services reimbursed by the issuer, a valuable benefit often overlooked. It's beneficial to use a rewards credit card with this perk, but ensure it aligns with your card's cost.
• Airport Lounge Access: Airport lounge access is a common perk of travel rewards credit cards, offering a comfortable space with amenities like seating, snacks, Wi-Fi, and more. It can save money on lounge fees and upgrades, enhancing the travel experience. Some cards may have fees or requirements for lounge access, so check your card's terms.

How do I get a Rewards Credit Card?

Once you've carefully considered your options and found the ideal rewards credit card, it's time to take the next step and apply. Thanks to the convenience of the online era, this process is quick and easy, taking just a few minutes.

Here's a handy checklist to guide you through the online application process for a rewards credit card:

• Ensure that you thoroughly review all the details of the credit cards you are interested in, including any extra perks and fees associated with them.
• Before you proceed with the application, make sure to compare different options. It's essential to have a few choices in mind that align with your needs. Take the time to evaluate credit cards based on their benefits, rewards, and associated fees before making a decision.
• Complete the form diligently. The rewards credit card application form includes a plethora of information about you. It is crucial to provide accurate details regarding your personal, professional, and financial information.
• Have your documents readily available. When applying for a rewards credit card, be prepared to provide various documents like proof of identity and income. This information allows issuers to evaluate your financial profile and creditworthiness effectively.
• Prepare yourself for Video KYC, as it has now become a standard procedure for credit card issuers to verify your eligibility.