Card adverts quote points (“10X rewards!”) rather than rupees, which makes cards hard to compare. Once you convert points into a percentage of your spending, comparing cards becomes simple.
Step 1: Find the earn rate
The card’s terms will say something like “4 reward points per ₹150 spent” or “5% cashback on online spends”. Cashback is easy because it is already a percentage. For points, note:
- how many points you earn
- per how many rupees spent
- whether there are accelerated categories (for example, 10X on partner sites) and how they’re capped
Step 2: Find what one point is worth
Points are worth different amounts depending on how you redeem them:
| Redemption option | Typical value | Notes |
|---|---|---|
| Statement credit / cash | Lowest | Simple, but often the worst value |
| Product catalogue | Low to medium | The catalogue’s prices are usually inflated |
| Gift vouchers | Medium | Depends on the brand |
| Air miles / hotel points | Can be highest | Only if you will actually fly or stay. Transfer ratios change |
The card’s MITC or rewards page lists the value per point for each option. Use the option you will realistically use, not the best one on paper.
Step 3: Calculate the effective reward rate
Example: 4 points per ₹150, and 1 point = ₹0.25 as a voucher.
4 × ₹0.25 = ₹1 back per ₹150 → 1 ÷ 150 = 0.67%
Example with an accelerated category: 10X points online (40 points per ₹150), capped at 5,000 bonus points a month.
40 × ₹0.25 = ₹10 per ₹150 = 6.7% — but only until the cap. The bonus points earn 9X (36 of the 40 points per ₹150), so 5,000 ÷ 36 × 150 ≈ ₹20,800 of online spending a month reaches the cap. After that, you’re back to the base 0.67%.
Step 4: Adjust for the fine print
- Exclusions: fuel, rent, wallet loads, insurance, utilities, government and education payments are often excluded or earn less.
- Monthly or quarterly caps on accelerated rewards.
- Redemption fees: some banks charge a fixed fee each time you redeem.
- Expiry: points you never redeem are worth ₹0.
- Annual fee + 18% GST, unless you reach the spending threshold for a fee waiver.
Step 5: Compare with your actual spending
Write down how much you spend in a typical month in each category: groceries, online shopping, fuel, travel, utilities and UPI. Multiply each amount by the card’s effective reward rate for that category. Add up the yearly total and subtract the fees. The card with the highest net rupee value is your best card, which is often not the one with the biggest headline number.
The rule that matters most
Credit card interest in India is typically around 3–3.75% per month, which works out to over 40% a year once compounded, as of November 2026. If you pay only the “minimum amount due”, interest starts on the whole balance, and one month’s interest wipes out years of rewards. Use a rewards card only if you pay the full statement balance every month.
Next: read how to choose your first credit card.
Frequently asked questions
What is a good reward rate for a credit card in India?
As a rough benchmark, about 1% back on everyday spending is decent for a no-fee card. 2% or more on your main spending categories is good. Premium cards can return more, but usually only if you redeem points for flights or hotels, and they charge high annual fees.
Do reward points expire?
On many cards, yes, often two to three years after you earn them. Some cards' points never expire. Check the 'Most Important Terms and Conditions' (MITC) document for your card.
Do I earn reward points on rent, fuel or wallet top-ups?
Often not. Many issuers exclude or cap rewards on fuel, rent, wallet loads, utility and government payments, insurance and education fees, and some charge a fee on rent payments. The exclusion list differs by card and changes frequently.
Is it worth paying an annual fee for a rewards card?
Only if the rewards you will realistically earn, plus any benefits you actually use, are worth more than the fee plus 18% GST. Many cards waive the annual fee if you spend a set amount in a year. Check whether you'll reach it.
