7 smart ways to maximise credit card cashback and rewards in 2025 | Mint

Credit card usage in the country is growing fast. There were 11.12 crore cards in use as of May 2025, up 7.64% from last year, according to a recent report by Angel One. HDFC Bank added the most new cards, followed by SBI and Axis Bank. ICICI Bank, however, saw a drop. As more people start using credit cards, it becomes important to use them wisely. One way is by making the most of cashback and rewards.

Therefore, in such a rapidly evolving credit card environment, it is crucial for card-holders to find efficient ways to maximise cashback and rewards to make the most of their credit instruments. To meet these objectives, you must use appropriate credit cards according to your needs and spending. Efficient planning is crucial for boosting your cashbacks and rewards.

Elaborating on the same, Sarika Shetty, Co-founder and CEO, RentenPe says “Use the right card for each spend category—groceries, dining, travel, or rent – to maximise credit card rewards. Keep track of offers, bonuses, and wallet or bank deals. Use platforms that reward you for paying bills like rent, utilities etc using credit card to maximise on rewards and add on savings. Pay bills in full to avoid interest — rewards only work when you don’t carry debt.”

Therefore, to make the most of your credit card, you should select the one that matches your lifestyle and spending habits. Begin by listing your monthly expenses to identify key categories like groceries, fuel, travel, or online shopping. Then, pick a card that offers the best rewards in those areas—like lounge access for frequent flyers or cashback on Amazon, Flipkart, and food apps for avid online shoppers.

What are the other features to consider?

Do remember, apart from focusing on maximising your cashbacks and rewards, you should also consider features such as annual fee waivers, milestone benefits, foreign transaction charges along with whether the credit card you are opting for provides UPI compatibility or not.

As this is a growing need in the country’s evolving digital payment landscape. Hence, do compare features carefully before opting for any particular credit card and don’t hesitate to downgrade or upgrade later based on your financial behaviour.

Smart strategies to boost rewards

1. Use the right credit card for each category: dining, fuel, travel, shopping.
2. Use cashback applications such as MagicPin, GPay, CRED etc to maximise savings during festivals.
3. Maximise welcome/milestone bonuses to focus on offsetting annual fees.
4. Use your rewards to get credit card bill discounts at checkout for better value.
5. Check and follow limits on cashback or reward points.
6. Ensure that you pay your bill in full to avoid interest nullifying your gains

Spend wisely and stay informed

Do remember, credit card features change and evolve rapidly with market trends. That is why staying updated on new developments, launches, offers and rewards assists in maximising value. You can also save anywhere between ₹10,000 to ₹30,000 annually with efficient usage.

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Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.