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The Benefits of Credit Card Rewards

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Created on
March 28, 2023


What’s Inside

From convenience, security and a plethora of benefits, there are several reasons why credit cards have become an integral part of our financial lives. Beyond their primary function of making purchases, credit cards hold a treasure trove of hidden gems that can enhance our financial well-being and  transform the way we manage our finances.

The basics

Banks and card issuers offer customers rewards to draw customers into using more credit cards. Consequently, cards are customised for specific types of use. For instance, if you shop on e-commerce platforms, you get credit cards that earn points, discounts and cashback facilities when you shop on such portals.

The best credit cards may give you substantial rewards, but if you don’t track the points and their expiry, you may lose out on the advantages earned through rewards. This means that reward points accumulate in your credit card account as you earn them and can be redeemed against many kinds of rewards like cash credits, discounts, air miles, etc.

Benefits of credit card rewards

The best rewards credit cards match you and your unique spending behaviour. A credit card will offer you no benefits if you have a shopping credit card that earns points for shopping but you aren’t much of a shopper. However, if you choose your card wisely, you get many benefits with the use of a reward credit card: 

  • You can avail of cashback benefits, to you get discounts when you spend at particular retail portals or outlets.
  • Some credit cards offer you rewards when you spend on the card, without an expiry. 
  • Certain credit card rewards include a cash redemption facility where reward points are converted into a cash credit. You can either use this to buy more items or against the payment of credit card bills.
  • You can convert your credit card points into gift vouchers. 
  • You get tailor-made cards that suit your spending habits, allowing you to earn more rewards.
  • Certain reward credit cards offer you a bonus amount of points when you sign up. 

Making the most of benefits

You may likely think that the more you spend, the more you earn in terms of reward points that can be redeemed later. However, using a credit card comes with its own set of risks. While thinking of rewards you can earn, you may overspend. Your line of credit, although 30 days or more, has restrictions after which you are bound to settle your bill.

If you are searching for a credit card that constantly rewards you, look no further than the  Fi-Federal Co-Branded Credit Card! Your rewards will evolve as your spending habits change each month. With up to 5X accelerated rewards on spending at any of India's top 21 brands, this credit card offers an exceptional deal. You can also access premium perks such as Lounge Access, Low Forex Fee, Instant Credit Card Issuance, Customised Reminders, and Spend Insights. As a welcome offer, you'll receive exclusive vouchers from top brands worth over ₹5,000!

Frequently Asked Questions

Is it smart to use credit card rewards?

Yes, it is smart to use credit card rewards as they provide an opportunity to earn benefits and savings on everyday expenses. By strategically utilising reward programs, you can maximise your spending and enjoy perks such as cashback, travel rewards, and discounts, enhancing your financial well-being. However, responsible credit card usage and timely payments are essential to avoid accruing debt.

How much is 50,000 reward points worth?

Different credit card companies/banks have different calculations of reward points and equivalent cash earned on points. For this, you must check with specific card issuers regarding redemption. 


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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