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Guide

How to Choose a Rewards Credit Card in 2026

Rahul Dabhi's profile photo Rahul Dabhi
4 min read
Reviewed by Rahul Dabhi Last reviewed 14 October 2026 Data verified 14 October 2026
RewardsPointsRedemptionTransfer Partners

A rewards card earns points on every buy. Redeem for cashback, air miles, vouchers, or hotel stays. Pick based on your spending and how you want to redeem. Transfer partners can boost value. This guide shows you how in 6 steps.

Why this matters

Rewards cards can be more valuable than cashback cards. This is true if you transfer points to airline or hotel partners. For example, 1 HDFC Reward Point = ₹0.20 in cashback. But 1 HDFC Reward Point transferred to airline partners = ₹0.50–1.00 in flight value. The transfer option can double the value of your rewards.

Worked example — Amex MRCC at ₹50,000/month Amazon

An Amex cardholder spending ₹30,000/month on Amazon and ₹20,000/month on Flipkart (both within the 1,000 pts/mo cap):

  • 10X on Amazon = 1,000 bonus pts/mo (capped) + 1,000 base pts = 2,000 MR pts/mo on Amazon (capped at the bonus)
  • 10X on Flipkart = same cap = 2,000 MR pts/mo
  • 5X on other spends (₹0 here) — assumed 0
  • Total ≈ 48,000 MR pts/year
  • Transferred to Singapore KrisFlyer at 1:1 = 48,000 KF miles
  • Redeemed for a one-way Singapore Airlines economy ticket (₹30,000+ fare) = ~₹30,000/year in flight value
  • Annual fee = ₹1,500 (waived on ₹1.5L spends)
  • Net value ≈ ₹28,000–30,000/year when transferred

How to Choose a Rewards Credit Card in 2026

How to apply Total time: 25 min · You’ll need: Spend pattern, redemption preferences, travel pattern, CIBIL score

Find the best rewards credit card in India — 1 reward point per ₹100, redemption value, and transfer partners. Compare HDFC, ICICI, SBI, and Amex rewards cards.

  1. Decide between cashback and rewards — Cashback is simpler and more predictable. Rewards can be more valuable if you transfer to airline or hotel partners, but require more effort to maximise. Beginners should prefer cashback; experienced users should prefer rewards with transfer partners.

  2. Compare the reward earn rate — Most rewards cards offer 1–5 points per ₹100. HDFC Regalia offers 4 points per ₹150 (effectively 2.6 points per ₹100). ICICI Sapphiro offers 2 points per ₹100. Amex MRCC offers 1 point per ₹50 (effectively 2 points per ₹100) on Amazon and Flipkart. Pick a card with the highest effective earn rate on your top category.

  3. Check the redemption options — Rewards cards offer 3–5 redemption options — cashback (1 point = ₹0.20–0.30), product vouchers (1 point = ₹0.25–0.50), air miles (1 point = ₹0.50–1.00), and statement credit (1 point = ₹0.20). Pick a card with redemption options that match your preferences.

  4. Evaluate the transfer partners — Amex Membership Rewards transfer to Singapore Airlines, Air Canada, Delta, and Hilton at a 1:1 ratio. HDFC Reward Points transfer to limited partners. ICICI Reward Points transfer to Air India. Axis EDGE Miles transfer to 6+ airline and hotel partners. Pick a card with transfer partners that match your travel pattern.

  5. Check the points expiry and cap — Most rewards points expire 2–3 years after accrual. Some cards have a monthly cap on accelerated rewards. Pick a card with a long expiry and a cap that matches your monthly spend.

  6. Apply for the card that matches your redemption pattern — Once you have compared the 5 factors above, apply for the card that best matches your spending and redemption pattern. Set up auto-pay and start earning rewards from day 1.

Common mistakes to avoid

The most common mistake is redeeming points for cashback when transfer to airline partners would give 2–3x more value. The second is letting points expire — most cards have a 24-month expiry. The third is not tracking the monthly cap on accelerated rewards.

Pro tips

  • Transfer points to airline or hotel partners for maximum value
  • Track the points expiry in the bank’s app
  • Set up auto-pay to avoid interest charges that wipe out the rewards
  • Use the card for all retail spends to accumulate points faster

Quick verdict

If you transfer points to airline partners: Amex MRCC (#1) for budget or Axis Atlas (#2) for mid-premium. If you redeem as cashback: HDFC Millennia (#3). Never redeem reward points for cashback if a transfer partner is available.

Frequently asked questions

Which is the best rewards credit card in India?

Amex MRCC is the best for transfer partners. HDFC Regalia is the best for mid-premium rewards. Axis Atlas is the best for EDGE Miles transfers.

What is the value of reward points?

Cashback redemption: 1 point = ₹0.20–0.30. Voucher redemption: 1 point = ₹0.25–0.50. Airline transfer: 1 point = ₹0.50–1.00. Hotel transfer: 1 point = ₹0.40–0.80.

Do reward points expire?

Yes. Most rewards points expire 2–3 years after accrual. Check the bank’s app for the exact expiry date of your points.

Disclosure: FinWiz24 may earn a commission when you apply through links on this page. This does not influence our editorial independence — every card is scored against the same rubric.

Sources

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