How To Get More From Your Credit Cards: A Practical Guide For Indian Users

Credit cards have become essential financial tools but most people barely scratch the surface of what they offer. The difference between someone who simply swipes their card and someone who strategically uses it can mean thousands of rupees in savings annually.

Track where your money goes every month - fuel, groceries, eating out or e-commerce shopping. This isn't about budgeting - it's about finding the right card to your everyday lifestyle. Someone who spends Rs 15,000 monthly on groceries would benefit tremendously from a card offering 5 per cent cashback on supermarket purchases, while a frequent traveller needs something entirely different.

Many people make the mistake of applying for cards based on advertisements rather than actual usage. A card promising airport lounge access means nothing if you fly once a year. Instead, focus on everyday categories.

“Timing matters more than people realize. Several cards offer accelerated rewards during specific periods or on particular days. Some provide extra points on weekend spending, while others have monthly bonus categories. Mark on your calendar and plan the big purchases. Buying that new phone during a bonus period could earn you double or triple rewards,” says Bhargav Errangi, Founder, POP, a rewards-driven fintech and commerce ecosystem platform.

The welcome bonus often represents the highest return you'll get from any card. However, don't overspend just to meet the threshold. If a card requires Rs 50,000 spend in three months for bonus points, and you naturally spend Rs 40,000, it might work. But spending an extra Rs 20,000 on unnecessary items defeats the purpose.

“Don't ignore redemption strategies. Reward points sitting idle lose value over time due to devaluation. Some cards let you offset statement balances, others offer shopping vouchers, and premium cards provide airline mile transfers. The conversion rates vary wildly - sometimes 1 point equals 20 paise, other times just 10 paise. Calculate which redemption method gives maximum value,” says Errangi.

Pay attention to renewal fees. Many credit cards waive annual charges if you meet minimum spending criteria. Missing this by Rs 5,000 could mean paying Rs 1,500-2,000 unnecessarily. Set reminders three months before renewal to track your progress.

Finally, maintain discipline. Rewards mean nothing if you're paying 3 per cent monthly interest on outstanding balances. The best reward is avoiding debt entirely. Use credit cards as payment tools, not loans, and clear dues in full every month. The above approach turns your everyday spends into savings.

“Credit card rewards can be a great perk, but they should never be the reason you spend beyond your means. The most important rule is simple: only charge what you can pay off in full every month. If you carry a balance, the interest you pay can quickly wipe out any points, miles, or cashback you’ve earned. In fact, just one month of interest can undo months (or even a year) of rewards,” says Errangi.

It’s also smart to avoid opening several credit cards at once just to grab sign-up bonuses. This can hurt your credit score and make your daily finances harder to manage. And don’t buy things you don’t actually need just to hit a spending requirement. When you do that, reward programs stop being helpful and start becoming expensive traps.

“They’ll ask you to “confirm” your card number or personal details. That’s the red flag. Legitimate credit card companies don’t reach out randomly asking for sensitive information. If a message seems even slightly suspicious, don’t click anything -log in through your card issuer’s official website or app and check there instead,” suggests Errangi.

It’s also worth remembering that reward programs aren’t set in stone. Banks can tweak the rules, cut back benefits, or quietly reduce the value of points.