Cashback, Points or Miles? Types of Rewards Credit Cards in India
Team PaisaSimple • February 1, 2025
Rewards credit cards pay you back in cashback, reward points or air miles. Here's how each type works in India and how to pick the one that suits you.
Last reviewed: October 2026
A rewards credit card gives you something back every time you spend. In India, that "something" comes in three main forms: cashback, reward points or air miles. Each suits a different kind of spender. Here's a simple guide to the types of rewards credit cards and how to choose.
The three types of rewards credit cards
| Type | How it works | Best for |
|---|---|---|
| Cashback | A % of your spend comes back as a statement credit (or store balance on some co-branded cards) | People who want simple, guaranteed value |
| Reward points | You earn points per ₹100 or ₹150 spent and redeem them for vouchers, products, flights or statement credit | People willing to learn how to redeem well |
| Air miles | You earn miles that you transfer to airline or hotel programmes | Frequent travellers who'll actually use the miles |
Cashback cards
Easy to understand: 1.5% back is 1.5% back. Watch for caps and excluded categories such as rent, fuel and wallets. See our list of cashback credit cards.
Reward points cards
Points can be worth very different amounts depending on how you use them. The same points might be worth a little as a product from the catalogue or much more as a flight booking. Learn how in our guide to redeeming credit card reward points.
Air miles cards
Miles give the highest value when you transfer them to an airline for a good-value ticket. But transfer partners and ratios can change, and banks cut several partners in 2026. These cards suit people who fly often and enjoy planning. See travel credit cards.
How to choose the right type
- Do you want zero effort? Pick cashback.
- Do you shop mostly on one platform? A co-branded cashback card for that platform often gives the most.
- Do you fly a few times a year and like planning? Points or miles can give more value.
- Do you spend a lot every month? A premium points card can be worth its fee, if you redeem well.
Tips to get more from any rewards card
- Put your regular spends (groceries, bills, fuel where allowed) on the card, then pay in full.
- Learn your card's accelerated categories and caps.
- Check expiry dates for points.
- Never carry a balance for rewards: interest of around 3–3.75% a month wipes out any reward.
The bottom line
Choose cashback for simplicity, points for flexibility and miles if you travel often. Whatever you choose, pay your bill in full so your rewards stay a bonus, not a cost.
Ready to compare? Compare credit cards on PaisaSimple →
Sources
Disclaimer: This article is for general information only and is not financial advice. Reward rates, caps and redemption values are set by each issuer and can change. Check your card's terms and its Key Fact Statement, which issuers must provide under the RBI's credit card rules.
Frequently Asked Questions
What is a rewards credit card?
Is cashback better than reward points?
Which rewards credit card is best in India?
Do reward points expire?