7 key tips to get maximum cashback and rewards from your credit card

If you're using a credit card user, there are multiple ways to earn cashback and maximise credit card rewards. From shopping to bill payments, being strategic about how and where you spend can significantly boost the benefits you receive.

To get the most out of your credit card, look out for bank-specific offers, category-based cashback deals, and renewal bonuses. You can also set up auto-pay for utility bills to earn consistent rewards and avoid late fees. Being proactive with these features helps you make the most of your credit card in 2025.

Here we share key tips for maximising the rewards:

1. Choose credit cards based on your spending habits: To maximise cashback on daily expenses, opt for cards like HDFC Bharat Cashback, SBI SimplySAVE, or Axis Bank ACE. These are ideal for utility bills, groceries, and other routine purchases. For frequent fuel expenses, cards such as the IndianOil Citibank Credit Card or BPCL SBI Card offer fuel surcharge waivers and additional rewards.

2. Use cards with platform specific and category based offers: Some cards offer exclusive cashback on specific platforms. For instance, the Flipkart Axis Bank Credit Card gives extra rewards on purchases made on Flipkart. Similarly, if you frequently dine out, cards like HDFC Regalia or SBI Card PRIME provide attractive dining discounts and accelerated reward points.

3. Leverage bank specific and seasonal offers: During festive seasons or special sales, banks often launch tie ups with e-commerce platforms. Watch for bank-specific credit card offers on Amazon, Flipkart, Myntra, or Paytm. These limited time deals can provide extra cashback, instant discounts, or reward point multipliers when using eligible credit cards.

4. Earn accelerated rewards through partner platforms: Many credit cards in India offer accelerated rewards when used through specific partner apps or merchant tie-ups. For example, you can earn up to 10x reward points on premium dining, flight and hotel bookings, or while shopping at select outlets. Make sure to check if your card supports such high-reward categories to maximise benefits.

5. Set up auto pay for utility bill payments: To earn cashback on utility bills, consider setting up auto-debit or standing instructions on your credit card. Not only does this help accumulate regular rewards, but it also ensures timely payments—helping you avoid late fees and credit score penalties. Cards like Axis Bank ACE and Amazon Pay ICICI are popular for such features.

6. Use credit cards with strong welcome and renewal bonuses: When selecting a card, always compare the welcome bonus and renewal benefits. Some credit cards offer free vouchers, flight miles, or premium memberships as sign-up perks. These bonuses can effectively offset your annual fee and add value from the first year itself.

7. Avoid overspending to earn rewards: While it’s tempting to spend more to unlock cashback or points, overspending can lead to debt. Experts recommend using only 30% to 50% of your credit limit and always paying on time. Staying within this limit not only helps in credit score improvement, but also ensures that you avoid interest charges on outstanding balances.

Therefore, keeping these crucial factors in mind, credit card users should also acknowlege several fundamental principles while using credit cards one such principle is the 2/3/4 rule for credit cards.

What is the 2/3/4 rule for credit cards?

The 2/3/4 rule simply suggests applying for a maximum of 2 credit cards every 2 months, 3 cards every 12 months, and 4 cards every 24 months to protect credit score. Hence, keeping this rule in mind will help you keep your credit score high and your credit utilisation ratio in check. 

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.