Best Rewards Credit Cards For 2024

Forbes Advisor India analyzed up to 100 cards from top financial services companies in India on the basis of key factors including:

Ease of Use: Where the system of cashback or reward points is clear to understand and it is easy to use those reward points. We have also taken into consideration caps on getting these reward points.

Extra Facilities: These include extra benefits provided by a card other than the usual payment making, like welcome benefits, discounts on other things than fuel, surcharge waiver, etc.

Cost of the Card: The annual fee, add-on charges, hidden charges and rebates all make up for this.

Acceptance: Universal acceptance of the card is a must and is another important factor with the credibility of the issuer.

Redemption of Reward Points: The most important point is the redemption of reward points, the procedure should be transparent and easy for the users.

Reward credit cards are a type of credit card that offers users various incentives, typically in the form of rewards or benefits, for making purchases using the card. These rewards can come in various forms, including cash back, points, miles, or other perks. Here’s how reward credit cards generally work:

Reward Points on Use: When you make purchases using a reward credit card, you earn a certain number of points or rewards based on the amount you spend. The earning rate can vary depending on the specific credit card and the type of transaction (e.g., purchases, travel, dining).

Accumulate Points: Over time, you accumulate these points in your rewards account. Some cards may have bonus categories where you earn more points, such as higher rewards for travel or dining expenses.

Redemption Options: Once you’ve accumulated a sufficient number of points, you can redeem them for a variety of rewards. Common redemption options include cash back, travel expenses, merchandise, gift cards, or statement credits.

Cash Back: With cash back reward cards, you typically receive a percentage (e.g., 1%, 2%, or more) of your purchases back as a statement credit or a direct deposit into your bank account.

Travel Rewards: Some cards offer travel rewards in the form of miles or points that can be redeemed for flights, hotel stays, rental cars, or other travel-related expenses.

Annual Fees and Interest Rates: Many reward credit cards may have annual fees, so it’s important to consider whether the value of the rewards outweighs the cost of the fee. Additionally, be mindful of the card’s interest rates, as carrying a balance can negate the value of the rewards.

Bonus Offers: Some reward credit cards come with introductory bonus offers. These bonuses often involve meeting a spending requirement within a specified time frame to earn a large number of points or a cash back reward.

Terms and Conditions: It’s crucial to understand the terms and conditions of a reward credit card, including any limitations on earning and redeeming rewards, expiration dates on points, and any restrictions or blackout dates for travel rewards.

In the diverse landscape of credit cards in India, various types of rewards credit cards cater to different preferences and lifestyles. These cards offer unique benefits and incentives, making them popular choices among consumers.

Travel Rewards Credit Cards: Designed for avid travelers, these cards offer rewards in the form of air miles, hotel stays, or other travel-related perks. Users can accumulate points to offset travel expenses or enjoy complimentary upgrades.

Points Rewards Credit Cards: With a points-based system, users earn points for every purchase. These points can be redeemed for a variety of rewards, including merchandise, gift cards, or even cash back.

Co-Branded Credit Cards: Co-branded cards are created in partnership with specific brands, airlines, or retailers. Users earn rewards tailored to the partner’s offerings, such as discounts, exclusive access, or accelerated rewards for spending with the partner.

Fuel Rewards Credit Cards: Tailored for those who frequently drive, these cards offer cash back, discounts, or reward points specifically for fuel purchases. This helps users save on their fuel expenses.

Dining and Entertainment Credit Cards: These cards provide extra rewards, discounts, or cash back on dining and entertainment expenditures. Users can enjoy savings when dining out, ordering in, or attending events.

Premium and Lifestyle Credit Cards: Geared towards high-income individuals, premium cards offer a range of luxury benefits, including access to exclusive events, concierge services, and higher rewards on premium spending categories.

Offline Shopping Rewards Credit Cards: Ideal for frequent shoppers, these cards offer rewards, discounts, or cash back on retail purchases. Users can benefit from exclusive deals and discounts at partner stores.

Online Shopping Reward Credit Card: An online shopping reward credit card offers exclusive perks and benefits tailored for digital purchases, enhancing the online shopping experience.

While rewards credit cards offer a plethora of enticing features and benefits, it’s crucial to note that not every credit card encompasses the extensive array mentioned above. The landscape of credit cards is diverse, with each card tailored to meet specific consumer needs and preferences. While some credit cards focus on rewarding travel and dining expenditures, others prioritize cash back or specialized categories.

Annual fees, introductory APR offers, and security features also vary across different cards. Therefore, individuals seeking a credit card should carefully evaluate their spending habits and priorities to choose a card that aligns with their unique financial goals, ensuring they reap the maximum benefits based on their lifestyle and preferences.

Earn Points or Cash Back: Accumulate points or receive cash back for every purchase, providing tangible rewards for your spending.

Multiple Redemption Options: Enjoy flexibility with a variety of redemption choices, including cash back, travel rewards, merchandise, gift cards, and more.

Welcome Bonuses: Many cards offer enticing welcome bonuses, providing a substantial boost to your rewards balance upon card activation.

Specialized Categories: Earn accelerated rewards in specific spending categories such as travel, dining, groceries, or fuel, maximizing benefits in areas that align with your lifestyle.

Co-Branded Partnerships: Access exclusive partnerships with brands, airlines, or retailers, unlocking unique discounts, privileges, and bonus rewards.

Travel Benefits: Enjoy travel perks such as airport lounge access, complimentary travel insurance, and discounts on flights, hotels, and rental cars.

Dining and Entertainment Privileges: Receive discounts, cash back, or exclusive access to dining establishments, events, and entertainment venues.

Annual Fee Waivers: Some cards offer annual fee waivers, helping to maximize the value of the card’s rewards without incurring additional costs.

APR Offers: Benefit from introductory APR offers, including 0% interest rates on purchases or balance transfers for a specified period.

Security Features: Enjoy enhanced security features, including fraud protection, purchase protection, and zero liability for unauthorized transactions.

Online Account Management: Conveniently manage your card account online, track rewards, view statements, and redeem rewards through user-friendly digital platforms.

Concierge Services: Access concierge services for assistance with travel bookings, event reservations, and personalized assistance.

Exclusive Events and Discounts:Gain access to exclusive events, sales, and discounts, providing an elevated experience for cardholders.

Upgrade Opportunities: Some cards offer the opportunity to upgrade to higher-tier cards with even more premium benefits as you meet certain spending criteria.

No Foreign Transaction Fees: Travel with ease knowing that some rewards credit cards waive foreign transaction fees, saving you money on international purchases.

Following eligibility factors enable individuals to assess their qualifications and make informed decisions when applying for rewards credit cards. It’s advisable to review the specific criteria outlined by the issuing bank for the particular card of interest.

Credit Score: A strong credit score is a key factor in determining eligibility for rewards credit cards. Lenders typically prefer applicants with a higher credit score as it reflects a history of responsible credit management.

Financial Stability: Demonstrating financial stability, including a consistent income and a reasonable debt-to-income ratio, is crucial. Lenders assess this information to gauge an applicant’s ability to manage credit responsibly.

Credit History: A positive credit history, showcasing timely payments and responsible credit usage, is favorable for approval. Lenders often review an applicant’s credit report to assess their creditworthiness.

Income Requirements: Some rewards credit cards may have specific income requirements. Meeting or exceeding these requirements can enhance eligibility for certain premium or high-rewards cards.

Debt Levels: Lenders may evaluate an applicant’s existing debt levels to ensure that taking on additional credit will not pose a financial strain. A lower debt burden can positively impact eligibility.

Employment Status: Having a stable employment status or a reliable source of income is often a requirement. Lenders may consider employment history and stability when evaluating an application.

Age and Citizenship: Applicants typically need to be of a certain age, usually 18 or older, to apply for a credit card. Additionally, citizenship or legal residency may be required in the card-issuing country.

Relationship with the Bank: Some banks may consider the applicant’s existing relationship with the institution, such as having a savings or checking account. Being a current customer may enhance the chances of approval.

Specific Card Criteria: Certain rewards credit cards may have unique eligibility criteria. This could include factors like a minimum spending requirement, specific spending categories, or targeted demographics for specialized cards.

Regulatory Compliance: Compliance with local financial regulations and legal requirements is essential. Ensuring that an applicant meets all necessary legal criteria is fundamental to the credit card approval process.

When applying for rewards credit cards, financial institutions typically require specific documents to verify the applicant’s identity, financial stability, and creditworthiness. The exact documentation may vary among banks, but commonly requested documents include:

Proof of Identity: Government-issued photo ID such as:

• Passport
• Driver’s license
• Aadhar card
• Voter ID

Proof of Address: Documents like:

• Utility bills
• Rental agreements
• Aadhar card

Income Proof: Income proof in the form of the following:

• Recent salary slips
• Income tax returns
• Certificate from the employer

Bank Statements: Typically, a few months of bank statements are requested to assess the applicant’s financial stability and transaction history.

Employment Verification: Employment verification documents, such as a company ID or a letter from the employer, may be required to confirm the applicant’s job status and stability.

Credit Score Report: Some banks may request (very rare) a copy of the applicant’s credit report to evaluate their creditworthiness. This report provides details about the individual’s credit history and score.

Photographs: Passport-sized photographs of the applicant may be required for the credit card application.

Application Form: Completing the credit card application form is a standard requirement. This form captures essential personal and financial details.

Income Tax Returns (ITR): Self-employed individuals may need to submit their income tax returns as proof of income.

PAN Card: A Permanent Account Number (PAN) card is often a mandatory document for credit card applications, serving as proof of identity and facilitating financial transactions.

Additional Income Documents: For individuals with additional income sources, documents like rental income proofs or investment statements may be required.

Applying for rewards credit cards online is a convenient and straightforward process. Here’s a step-by-step guide to help you navigate the online application:

Visit the Card Issuer’s Website: Go to the official website of the bank or financial institution that issues the rewards credit card you’re interested in.

Precaution: Remember to exercise caution while providing personal information online and ensure that the website is secure (look for “https://” in the URL).

Navigate to Credit Cards Section: Locate the section on the website that specifically deals with credit cards. This may be under headings like “Products,” “Credit Cards,” or “Apply Now.”

Explore Card Details: Explore the details of the rewards credit card you’re interested in. Review the features, benefits, fees, and eligibility criteria. Ensure the card meets your financial needs.

Check Eligibility: Many banks provide an online tool to check your eligibility for the credit card. Enter the required details, such as income, employment, and personal information, to determine if you meet the criteria.

Fill in the Online Application Form: Once you confirm your eligibility, proceed to fill out the online application form. Provide accurate information about your personal details, employment, income, and any other required information.

Upload Documents: The online application may require you to upload necessary documents. Commonly requested documents include proof of identity, address, income, and employment.

Review Application: Before submitting your application, carefully review all the information you’ve provided. Ensure accuracy and completeness to avoid delays in processing.

Submit Application: Once satisfied with the details, submit your online application. Some banks may provide an instant decision, while others may take some time to review your application.

Wait for Approval: After submitting the application, wait for the bank’s response. If approved, you’ll receive details about your new credit card, including the credit limit and delivery timeline.

Activate Your Card: Once you receive the credit card, activate it as per the instructions provided by the bank. This often involves calling a specified number or using online banking services.

Set Up Online Account: Create an online account with the card issuer to manage your credit card, view statements, and track rewards.