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Are Rewards Credit Cards Worth It?

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Created on
April 11, 2023


What’s Inside

Have you ever heard of a rewards credit card? While you might hear it for the first time, a question frequently asked by credit card holders might have crossed your mind too: are credit card rewards worth it? In other words, you may wonder whether it is worth having a credit card just for the purpose of getting any rewards it offers. If a rewards credit card is used responsibly, it can be a boon for the user.

Are credit card rewards worth it?

Rewards credit cards are just what they sound like - cards which give cardholders reward points each time the card is swiped. Continuously using credit cards can help cardholders avail enough reward points which can be redeemed at various points like shopping, air travel, going to cinema halls and more.

Furthermore, not everyone realizes that rewards points come with a due date - they expire after a certain time and if not used, they lapse and users lose the benefits offered to them.

Additionally, if you are a savvy card user, you will get a rewards credit card that matches your unique spending behavior. For instance, if you are an avid traveler and spend on travel-related products extensively, a rewards card suited to this would help you earn more rewards and save in the long run. So, are credit card rewards worth it? For the most part, they are worth your while, but it is important to consider certain aspects of their use.

The Good and Bad Sides of Rewards

If you are wondering whether credit card reward points are worth considering while choosing a credit card, there is no easy answer to your query. Everything depends on the way you use a credit card and how responsible you are as a credit card user overall. Here are some good and bad sides of reward credit cards for you to ponder:

The Good Side of Rewards

The perks of having a reward credit card is that you earn points (rewards) on every purchase that you make. The points can then be redeemed for cash which is credited to your credit card account or miles which you can use to spend on air tickets. Several reward credit cards may not charge you a yearly fee. Finally, the icing on the cake is if you collect enough reward points, you can redeem them for a cash credit and settle your bill with the cash credit you earn.

The Bad Side of Rewards

So, are credit card reward points worth it? The disadvantages of having a reward card is that you tend to spend over your limit just so you can earn more reward points. The temptation to get reward cards is also great if your card issuer is compelling you to go in for a card just because you get a signing up bonus of reward points. In other cons, you should know that points lapse after a date of expiry. There is also the fact that redemptions choices may give you less in terms of the value of rewards you have earned. Finally, when you are hunting for a perfect reward credit card, you will find that the more reward points cards offer for every amount you spend, the more of a yearly fee they charge. Furthermore, premium reward cards offer eligibility to get them only if your credit scores are on the high side.

Get a Rewarding Experience with Responsibility

Although you know that the reward points of credit cards come with advantages and disadvantages, it is better to get a credit card offering rewards than one without them. Whether you have a rewards card or not, credit card use comes with a certain degree of responsibility on the cardholder’s part. If you doubt paying your credit card bills on time, visit Fi and get features that offer automated payments after opening a bank account for free.


1. Is it better to get cash back or rewards?

The benefits offered by credit cards must be weighed against the user’s particular spending habits. Therefore, while choosing a credit card, a user may want a card with a cash back feature if they are a shopper. However, for those who travel, for instance, a rewards card would be better.

2. Do credit card rewards make you spend more?

A credit card may make you spend more if you are not responsible with the use of one. You should know that however much you spend on a credit card, the line of credit only goes that far, and at the end of a credit cycle, a bill has to be settled.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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