Best Rewards Credit Cards 2025

What are Rewards Credit Cards?

A rewards credit card basically tracks your spending and rewards you with points. You buy groceries, book a flight, pay a bill, and the card keeps count. Later, you can trade those credit card reward points for shopping vouchers, discounts, or even flight tickets. Nothing fancy, just smart spending.

In India, you’ll come across options like the ICICI Bank Rewards Credit Card or the Indusind Bank Rewards Card. They don’t just throw buzzwords around; they actually reward dining, fuel, and retail purchases in a steady, helpful way. Spend more, earn more, that’s the whole deal.

Simply put, it’s your regular credit card, just one that gives something back every time you pay. Many users call them the best rewards credit cards because they turn spending into savings through point accumulation and exclusive offers.

Key Features of Rewards Credit Cards

A rewards credit card brings value beyond just payment convenience. It’s about turning daily transactions into benefits that you can use later. Have a look at the main highlights:

• Reward earning rate: Every swipe earns points. The best rewards credit cards in India often offer 2–5 reward points per ₹150 spent, depending on the category.
• Bonus and milestone offers: Some cards give extra points when you hit certain spend limits each month or year.
• Flexible redemption: Points can be used for flights, hotels, shopping vouchers, or even converted into cash statement credits.
• Category benefits: Dining, groceries, and fuel are usually the top categories for higher earnings on credit cards with good rewards.
• No expiry on points: A few issuers let points stay active for the card’s lifetime, while others fix a 2-3-year expiry.
• Low or zero annual fee options: You can find the best rewards credit card with no annual fee if you prefer minimal upkeep costs.

Types of Rewards Credit Cards

Every rewards credit card doesn’t work the same way. Banks in India issue several versions, each designed for a different spending habit. Here are some common types of rewards credit cards:

• General rewards cards: Earn points on almost all purchases, ideal for people with mixed spending patterns.
• Category-based cards: Focus on specific categories — such as dining, travel, or groceries—for higher rewards.
• Co-branded cards: Partnered with a brand or platform, giving special benefits when you shop there.
• Cashback rewards cards: Work like a cash rewards credit card, offering direct cashback instead of points.
• Premium rewards cards: Targeted at high-spending users, these often give lounge access, concierge services, and higher earn rates.
• No-annual-fee cards: Designed for light spenders who want rewards without an annual fee, these are the best rewards credit card options.

How Do Rewards Credit Cards Differ from Regular Credit Cards?

A top rewards credit card gives you points or perks each time you spend. A regular card lets you borrow money and pay later with fewer extras. Here are the key differences

• Earning structure: Rewards cards offer better returns on many spends, especially in popular categories. Regular cards often have flat or minimal rewards.
• Redemption flexibility: On rewards cards, you often redeem points for vouchers, travel, or shopping. Regular cards may only allow statement credits or fewer options.
• Annual fees vs value: Rewards cards may have higher fees but offer more value if you spend often. Regular cards may charge less but provide less reward value.
• Perks and bonuses: Rewards cards usually include milestone bonuses, partner deals, or accelerated points. Regular cards may lack these extras.
• Focused on spending patterns: Rewards cards are seen as one of the credit cards with good rewards when you spend frequently and smartly. Regular ones serve broader needs with fewer rewards.
• Caps and rules: Rewards cards often have monthly caps, exclusions, or higher tiers. Regular cards may be simpler in structure.

How do Rewards Credit Cards Work?

A rewards credit card works by giving you points or cashback every time you spend. The more you use it, the more you earn, and later redeem those rewards. Here is how it functions:

• Spending and earning: Every transaction earns you points based on your spend amount and category. Some cards give more on dining, travel, or online purchases.
• Tracking points: Banks show your accumulated credit card reward points in monthly statements or mobile app dashboards.
• Redemption: You can redeem points for flight tickets, hotel stays, online shopping vouchers, or convert them into statement credit.
• Bonus rewards: Many cards give welcome bonuses or milestone rewards once you cross certain spending limits.
• Expiry rules: Reward points often have an expiry window of 2–3 years, so it’s smart to redeem them before then.

What is the Difference Between Reward Points and Cashback?

Many people mix the two up, but they work differently. Both give value to your spending, yet in distinct ways. Here is the key difference:

Eligibility Criteria For Rewards Credit Cards

A rewards credit card offers points or benefits for every purchase. Before you apply, ensure you meet the basic criteria common in India. Here are the key eligibility requirements:

• You must be an adult resident in India, usually between 18 and 21 years old and up to 65 years old.
• You should have a stable monthly or annual income. Banks will check your salary slips, ITRs or bank statements for salaried or self-employed applicants.
• A good credit history helps. A score of 750+ is often cited as favourable for approvals.
• Applications must come from the bank’s sourcing cities/locations, and you must meet any residence or account-relationship criteria.

Documents Required for Rewards Credit Cards

To apply for a rewards credit card, you’ll need to verify your identity, address, and income. The process is quick if your documents are ready. Here is the basic list of documents

• ID proof: PAN, Aadhaar, Passport, or Driving Licence —any of them works.
• Address proof: Recent electricity or gas bill, Passport, Voter ID, or Ration Card.
• Income proof (salaried): Latest salary slips. Form 16. Sometimes, a 3- or 6-month bank statement.
• Income proof (self-employed): ITR copies, audited financials, GST or business registration as asked.
• Photo: A passport-size picture if the bank asks for it.
• Extra banks may ask: Existing account details, company ID, or a quick video-KYC.

How to Apply for Rewards Credit Cards through Urban Money?

Urban Money makes it simple to compare and apply for the best rewards credit cards online. You can browse, check eligibility, and submit your application, all in one place. Here is the step-by-step process to apply:

• Visit the Urban Money Credit Card page
• Use filters like “top rewards credit cards” or “best cash rewards credit card” to find the right one.
• Click on Apply Now next to your preferred card.
• Fill in basic details such as name, contact number, city, and employment type.
• Upload your documents, such as ID, address, and income proof.
• Submit the form and wait for verification. Urban Money forwards your application to the issuing bank.

Why Use a Rewards Credit Card?

Using a rewards credit card is about earning value on money you already spend. Every purchase gives you a chance to collect points or cashback that you can use later. Here are the reasons to use reward credit cards:

• Extra value on routine spends: You earn points on groceries, travel, and fuel that can be redeemed for vouchers or flight tickets.
• Better savings than regular cards: Cards like the best rewards credit card or the highest rewards credit card give higher returns for frequent spenders.
• Flexible redemptions: Reward points can be used for travel, shopping, or even bill payments.
• Partner offers: Co-branded or category cards come with bonus deals and merchant discounts.
• Simple tracking: Most banks show live reward summaries in their mobile apps, so you always know your balance.

Fees for Rewards Credit Cards

Every rewards credit card comes with certain costs. Knowing them helps you pick the right one for your budget and spending style. Here are some common fees to expect:

• Joining fee: Many cards charge a one-time joining fee that ranges from ₹500 to ₹3,000, depending on the benefits.
• Annual or renewal fee: Usually between ₹499 and ₹2,999. Some cards waive it when you cross a yearly spending limit.
• Finance charges: Interest of around 3%-4% per month applies if you don’t clear your full bill.
• Cash advance fee: Around 2.5% of the amount withdrawn or a minimum of ₹500.
• Late payment fee: Based on your outstanding amount, usually ₹100–₹1,300.

How to Compare Rewards Credit Cards?

Before picking the best rewards credit card, it’s worth checking how each option fits your spending pattern and goals. Here’s a simple checklist to guide you. Here is what to look for:

• Reward rate: Check how many points you earn per ₹100 spent. Higher rates make a big difference over time.
• Redemption options: Look for flexible options such as vouchers, travel bookings, or statement credit.
• Bonus programs: Some cards offer milestone or welcome points that add extra value early on.
• Annual fee vs. benefit: Compare the rewards you earn against the cost of holding the card.
• Category rewards: Choose cards that give higher points in your main spending areas, such as dining or fuel.
• Expiry and limits: Check if reward points expire or have monthly caps.
• Partner offers: Co-branded cards often have special discounts on specific brands or apps.
• Ease of tracking: Banks with good mobile apps make it easy to monitor credit card reward points and redemptions.

Tips to Maximise Your Earnings through Rewards Credit Cards

You can make the most of your rewards credit card with a few smart habits. These small steps help you earn faster and save more. Here are some simple tips to boost your rewards:

• Use the card for regular spending: Pay for groceries, fuel, or bills using your card to accumulate more credit card reward points.
• Time for big purchases: Shop during festive offers or bank reward campaigns to earn bonus points.
• Redeem strategically: Choose vouchers or travel bookings that offer the best value per point, rather than small redemptions.
• Watch for expiry: Set reminders to prevent points from lapsing.
• Pay full bills on time: Avoid interest that can cancel out the benefits you earn.
• Explore co-branded options: Cards like the Standard Chartered Platinum Rewards Card give higher returns on select categories.
• Track promotions: Banks often run limited-time reward boosts—keep an eye on app notifications or emails.