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How to Choose the Right Rewards Credit Card

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Created on
March 8, 2023


What’s Inside

Wouldn’t it be great if you could get a little something back for every spend? You can, with a rewards credit card. From buying groceries to booking flight tickets, you earn rewards for every swipe on your credit card. However, to make your spending truly rewarding, you should pick a card that best suits your lifestyle. Although the process of figuring out the right credit that meets your needs may seem daunting, it's actually quite simple.

Making the Most of Rewards

While you might now see the benefits of a rewards credit card, you might still be plagued with questions like ‘Do all cards offer the same rewards?’ Well, no. Rewards programs can vary depending on the type of rewards card you pick. 

Some cards offer rewards for partner-linked expenses, others offer high rewards for flight and hotel bookings. Similarly, there are cards that reward international spends, dining, and retail expenses. There are three types of rewards credit cards you’ll find in India:

  • Travel rewards card
  • Shopping rewards card
  • Entertainment rewards card

Finding the Perfect Match Can Be Rewarding

If you’re confused about which credit card to pick, simply follow these steps to find your ideal match in no time:

Step 1: Examine your Spending Habits 

Do you frequently order takeout? Or, travel a lot? Well, then you need to find a card that offers rewards in these categories. Since credit card rewards are tied to specific categories, the best credit card is one that aligns with your spending habits and rewards you for how you spend. 

Step 2: Research Reward Credit Cards

Once you’ve identified your heavy spend categories, do a bit of research on the types of cards available that offer good rewards in those categories. From co-branded cards that offer merchant-specific discounts to ones that offer cashbacks, you can pick a credit card that best suits your expense patterns. 

Step 3: Consider the Associated Charges 

Some credit cards come with high annual fees, renewal charges, and interest rates. Card issuers may also charge a redemption fee when you claim your rewards. Such cards may not be favourable even if they offer great rewards. Thus, you should factor in these charges while making a decision. 

Step 4: Check the Rewards Program

Next, you should review the conversion rate, i.e, how many rewards can you earn on every rupee spent. You should also check if the rewards redemption system is user-friendly and if there are any yearly reward caps in place.

Step 5: Compare the Best Credit Cards for Reward Points

You can make a shortlist of all the credit cards that match your spending patterns and compare their reward options and add-on charges. 

Unlocking Rewards

While there are several rewards credit cards available on the market, with these easy steps, you can pick the right one in no time. However, before you proceed to the shortlisting stage, don’t forget to review your credit score, as most rewards cards require a good credit history. To do so, you can rely on the Insight Hub of Fi’s AI-empowered Analyser tool. Apart from a quick credit rating, you can also benefit from the platform’s 360-degree money management features that help track your expenses and keep your credit debt in check!

Frequently Asked Questions

When you choose a credit card, what are the 3 main reasons for selecting it?

You must review the APR (Annual Percentage Rate), associated fees, and rewards program of the card. The first two ensure that the card is well within your budget. The last factor ensures the card matches your lifestyle and spending habits, helping you maximise its benefits. 

How do I decide which credit card to use?

Different credit cards offer different spend and category-based rewards. Thus, the choice will be based on your spending habits. For instance, if you spend more on travel, you should use a credit card that offers air mile rewards or discounts on flight tickets. Similarly, if you spend more on retail purchases, opting for a co-brand card may be better.


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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