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Credit Card

How reward and cashback credit cards can help you save more money

Key Takeaways

A cashback credit card returns a portion of your spending automatically, while a credit card with rewards lets you accumulate points redeemable for travel, vouchers, and more.
Matching your card to your dominant spending categories, whether that is daily groceries, travel, or lifestyle, is the single most effective way to maximise what you earn from a cashback credit card.
The right credit card with rewards does not just complement your lifestyle; over time, it actively reduces your effective cost of living through accumulated perks, cashbacks, and strategic redemptions.

24 Apr 2026 by Team FinFIRST

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Cashback credit cards give you a fraction of your spending back in cash, reducing your overall expenses. In some cases, this cashback can also be given as reward points, which you can later use to book hotels and flights and make purchases.  Credit cards with rewards and cashback can help reduce what you effectively spend each month, lowering your cost of living over time.

Let’s explore how choosing the right credit card for cashback and rewards can reduce what you effectively spend, month after month.

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How to get the most out of your cashback credit card?

Whether your credit card offers cashback, reward points, or other perks, chances are that you are not using it to its fullest potential. In fact, a 2025 survey found that 7 out of 10 Indians do not optimise their credit card usage to maximise rewards.

Some of the common areas where they lose out on credit cards with rewards include:

Unredeemed joining bonuses

Many credit cards offer cashback or reward points at an accelerated rate when you sign up. However, these bonuses usually come with minimum spending requirements that users do not meet, leaving them to miss out on the perks.

Neglected perks and rewards

Most Indians treat their credit cards simply as a means to make payments and improve their credit scores. Not investing the time to understand the rewards and cashbacks offered by your credit card can make you miss out on them.

Reward point expiration

Many credit cards with rewards have an expiration timeline for the accumulated reward points. Lacking awareness of this can cause you to lose a big chunk of the points you have accumulated.

Lack of strategic credit card usage

Credit card rewards are usually tied to certain spending limits or other terms and conditions. When you do not plan your card usage strategically, you miss out on a lot of these perks by not meeting the minimum requirements.

Understanding your credit card with rewards: Points vs cashback vs perks

Before we dive into how to maximise usage of your credit card with rewards, you need to know which type of reward structure your card uses, because the strategy is different for each:

Reward points

Credit card reward points are loyalty benefits that accumulate based on your card usage. They are usually calculated as a percentage of your total spending and can be redeemed for discounts, cashbacks, or other perks, depending on your card’s terms and conditions. Their value depends on how and where you redeem them.

Cashback

Unlike reward points, which accumulate and can be redeemed as per your convenience, credit card cashbacks are a percentage of your spending getting directly refunded to your statement at the end of each month, offering you immediate savings Travel, lifestyle, and other benefits

Some cards go beyond points and cashback and offer additional perks like lounge access, zero/low forex markup, dining discounts, or movie offers. These are most valuable when the perks align with categories you already spend in.

How do you choose the right credit card based on your spending style?

Different people use their credit cards for various purposes. For example, someone who uses their card while travelling would benefit from a lower forex markup and access to airport lounges. On the other hand, if you are more of a daily spender, a cashback credit card might be the right choice for you.

If you want to choose the best rewards credit card that fits your lifestyle, start by identifying your biggest monthly expense categories, then find a card built around them.

For instance, here are some of the common spending categories that you may relate to, as well as the right card for each:

Budget-conscious spender

If you are just starting out with credit, or simply want to keep things simple and low-cost, a cashback credit card with a modest annual fee is a good place to begin. The FIRST EARN Credit Card by IDFC FIRST Bank, comes with a ₹0 joining fee, and if you do not have a credit score yet, you can get it as an FD-backed credit card by opening a fixed deposit of ₹5,000, and keep enjoying cashback on everyday UPI spends at just ₹499 fee, 2nd year onwards.

Everyday spender

If your biggest monthly outflows are groceries, utility bills, and daily transit, cashback credit cards like Hello Cashback can be used for UPI transactions will give you the most consistent returns without having to think strategically about every swipe.

Lifestyle upgrader

If you enjoy watching movies, dining out, or shopping online, credit cards that offer brand discounts, reward points, entertainment offers, and other lifestyle benefits would be the right choice for you.

Frequent traveller

If you travel often, whether for work or leisure, a travel-focused credit card can significantly enhance your experience and save you money. This can include cards with low or zero forex markup, complimentary access to airport and railway lounges, travel insurance benefits, and more.

Why choose IDFC FIRST Bank Credit Cards?

With so many options in the market, finding a credit card with rewards that actually suits your lifestyle can feel overwhelming. IDFC FIRST Bank offers a range of credit cards designed around real needs, so there is always a card that fits your lifestyle.

For frequent travellers and premium users, the Ashva and Mayura Credit Card deliver strong travel-focused value: Ashva with a low 1% forex markup and Mayura with zero forex, both offering lounge access and accelerated 60X reward points on travel bookings via IDFC FIRST Bank mobile app.

If you are someone who likes shopping, the FIRST SWYP Credit Card provides you up to 20% discount on merchants like Nykaa, MyntraFWD, Tata CLIQ Fashion etc, while also providing flexibility in repayment options. It is built for users who want a credit card with rewards that keep up with an active social life.

For beginners who still want travel benefits without committing to a premium card, the FIRST WOW! Black Credit Card is an FD-backed option that offers zero forex markup, with quarterly lounge access and extra privileges to make your travel experience better.

For those new to credit, the FIRST EARN Credit Card is an FD-backed cashback credit card option requiring a minimum FD of ₹5,000, giving you a secured option while rewarding your UPI and everyday spends with cashback.

With IDFC FIRST Bank Credit Cards, you get a dynamic interest rate (APR), zero joining and annual fees (depending on the variant), up to 10X never-expiring reward points with bonus rewards on hotel and flight bookings, and a host of other features and benefits to match exactly where you are in your lifestyle.

How do you maximise your credit card with rewards?

While you can enjoy the best deals, reward points, and cashback offers on credit cards with IDFC FIRST Bank, these perks are only half the equation. Here’s how to make sure you actually get the most out of your card:

Always meet the minimum spend threshold in your first billing cycle to unlock your card's joining or welcome bonus.
Concentrate your major spending on one card rather than splitting across multiple cards so your points accumulate faster.
Use your card for UPI transactions if your card supports it, since this is an easy way to earn on everyday micro-spends.
Focus on categories like fuel, dining, or groceries that offer better perks or higher rewards and cashbacks on your credit card spends.
Redeem points for high-value options like travel bookings or product vouchers rather than low-value cashback conversions, where the rate is poor.
Review your monthly statement to track which spending categories are generating the most rewards and adjust your usage accordingly.

Convert everyday spending into rewards with the right card

A credit card with the right cashbacks, reward points, and perks can become a long-term savings mechanism. When every swipe earns you something back, your card becomes a tool that actively reduces your cost of living.

Intentionally using the right credit card with rewards that align with your spending patterns and lifestyle can make a significant difference in the savings you achieve in the long run. This is where IDFC FIRST Bank stands out: its diverse portfolio of credit card products meets the needs of every spending profile, no matter your lifestyle.

Get started with your IDFC FIRST Bank Credit Card and start maximising your rewards today.

Frequently Asked Questions

What is the difference between a cashback credit card and a rewards credit card?

A cashback credit card returns a percentage of your spending directly to your account as a statement credit, making it simple and immediate. A rewards credit card accumulates points that can be redeemed for a wider range of options, including travel, vouchers, or merchandise, often at a higher effective value.

What is the minimum income required to apply for a cashback credit card in India?

Income requirements vary by card variant. Entry-level cashback credit cards usually have no income requirement, especially FD-backed options. Mid-tier and premium cards may have a minimum monthly income, depending on the issuer and variant.

Can I have both a cashback credit card and a rewards card at the same time?

Yes, and many seasoned card users often use this strategy to maximise their gains. Using a cashback credit card for everyday spending and a rewards credit card for travel or lifestyle purchases lets you optimise returns across different spending categories.

Does paying only the minimum due reduce the outstanding amount on a credit card?

Paying the minimum due helps you avoid late fees and penalties, but it does not significantly reduce your outstanding amount. Interest continues to accrue on the remaining balance, increasing your total repayment over time. It is advisable to pay the full outstanding amount whenever possible to minimise interest costs and maintain a healthy credit profile.

How often should I check my credit card outstanding balance?

You should ideally check your credit card outstanding balance regularly, such as weekly or after major transactions. This helps you track spending, avoid exceeding your credit limit, and plan timely repayments. Monitoring your balance also ensures you stay aware of due dates and avoid unnecessary interest or charges.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.