5 Mistakes to Avoid When Using Reward Credit Cards in India (2025 Guide)
In India, credit cards offer amazing rewards like cashback, travel points, and more for your everyday purchases. But to make the most of these rewards, you need to avoid common mistakes. Here are five mistakes to avoid when using reward credit cards in India in 2025.
1. Carrying a Balance and Paying High Interest
Many Indians fall into the trap of carrying a balance on their credit card, which results in interest charges of up to 36% per annum. If you don’t pay off your bill in full every month, your rewards will quickly be outweighed by high-interest payments. Pay off your balance in full to benefit from your credit card rewards.
2. Failing to Maximize Category Spending
Some credit cards offer up to 10% cashback or rewards for specific categories like dining, fuel, or online shopping. Always use the right card for the right category to ensure you are maximizing your cashback. For example, use a card that offers extra points for dining when you eat out.
3. Ignoring the Welcome Bonus
Many reward credit cards in India come with a hefty welcome bonus after meeting a minimum spend. These bonuses can range from ₹500 to ₹5,000 or more, depending on the card. Don’t ignore the welcome bonus! Track your spending and ensure you meet the minimum requirements to claim these rewards.
4. Letting Your Reward Points Expire
Credit card reward points can expire if you don’t redeem them within a specified period, usually 2–3 years. Check the expiry date of your reward points regularly and redeem them before they expire. Also, keep an eye on any changes in the rewards program to avoid losing your hard-earned points.
5. Redeeming for Low-Value Options
While it might be tempting to redeem your points for smaller rewards like gift cards or merchandise, these often don’t offer the best value. Use your points for flight bookings, hotel stays, or statement credits to get the maximum value out of them.
💡 Bonus Tips for Smarter Credit Card Use in India
- Keep track of your credit card spend and rewards through apps like CRED or your bank’s mobile app.
- Use a mix of credit cards to cover different spending categories.
- Look for special offers during festivals or sale seasons to maximize your points.
🚀 Maximize Your Rewards, Minimize Mistakes
Reward credit cards can be a valuable tool if you use them wisely. By avoiding these common mistakes, you can earn significant rewards while avoiding fees and interest. In 2025, take charge of your credit card strategy to reap the maximum benefits.
Pro Tip: Want to know the best credit cards for rewards in India? Check out our Top Credit Cards for Rewards in India 2025.
Disclaimer: Please read your credit card’s terms and conditions before applying. The above information is for informational purposes only.