How to Make the Most of Your Credit Card

India's payment ecosystem is undergoing a significant transformation, with credit cards rapidly gaining traction among consumers. While cash and debit cards have long been the preferred modes of transaction, a discernible shift is underway, marking a new era in the country's financial landscape. 

The average amount spent per transaction online through:

• Debit cards: ₹3,938
• Credit cards: ₹5,352

This report delves into the factors propelling the increasing popularity of credit cards in India. Also, it provides a comprehensive guide on how individuals can strategically leverage these financial instruments to their advantage.

Growth in Credit Cards in India

The growth in the number of credit cards issued in India has been substantial over the past few years, as evidenced by official data from the Reserve Bank of India (RBI). 

In February 2025:

• The total number of credit cards issued by banks reached 10.9 crore.
• It's a significant increase from 6.10 crore (2021), which was a ~79% increase in just 4 years.
• In short, India has been adding close to 1 crore credit cards every year.

This upward trend highlights a growing acceptance and reliance on credit cards as a financial tool. This expansion signifies a fundamental change in India's evolving financial habits. It reflects an increasing comfort with credit and a broader shift towards digital payment methods, driven by their inherent convenience and the incentives offered.

Accompanying the rise in card ownership is a remarkable surge in spending through credit cards, as reported by both the RBI and the National Payments Corporation of India (NPCI).

• The value of credit card transactions has tripled over the past three years, reaching an impressive ₹16.8 lakh crore in February 2025.
• Furthermore, spending through credit cards saw a robust 12% Y-o-Y growth in February 2025 compared to the same month in 2024.

India’s credit card spending has witnessed astonishing growth in the last decade. Below is the image showing how these numbers have soared year after year:

The growth in credit card usage presents a notable contrast to the evolving landscape of debit card transactions in India. While the number of debit cards in circulation has continued to rise, the volume and value of transactions via debit cards have generally declined—particularly between 2019 and 2024, where both metrics witnessed a sharp drop.

This divergence underscores a clear shift in consumer preference. Credit cards are increasingly becoming the instrument of choice, likely driven by the surge of the Unified Payments Interface (UPI) for smaller, everyday transactions and the compelling rewards and benefits credit cards offer for higher-value and online purchases.

Despite a decline in the average transaction value across retail digital payments, credit card usage has continued on an upward trajectory in both volume and value. This indicates a fundamental evolution in consumer payment behaviour, with more users gravitating towards credit for its convenience, cashback, rewards, and seamless integration with digital platforms.

The explosive growth of e-commerce and digital services further fuels this shift, with a significant proportion of credit card transactions now occurring online.

Top Credit Card Banks in India: Market Share, Growth, and Trends

The Indian credit card market is characterised by the dominance of a few key players, primarily from the private banking sector. 

An analysis of market share reveals that HDFC Bank often holds the leading position in terms of market share. Following closely are major players such as SBI Card, ICICI Bank and Axis Bank. These top 4 banks command a substantial 71% of the total credit card market in India, as you can see in the infographic below.

Examining the growth rates of these key players provides further insight into the evolving landscape. 

• HDFC Bank and ICICI Bank have consistently shown strong ~15% growth in credit card spending in February 2025. 
• Bank of Baroda recorded the highest growth in the credit card segment, with a ~28% Y-o-Y increase.
• Conversely, some banks, like Kotak Mahindra Bank, experienced a decline in growth during the same period. 

These numbers clearly show that even though the number of credit cards in India is increasing, not every credit card issuer is benefiting from the trend.

Top Credit Cards in India

The Indian credit card market presents a plethora of options, each tailored to cater to specific spending habits and needs. Understanding the primary benefits offered by different cards is crucial for consumers to make informed decisions. Here's a look at the top 15 credit cards in India, categorised by their primary advantages:

Best Credit Cards for Travel:

1. Axis Bank Atlas Credit Card: This card is designed for frequent travellers. It offers accelerated EDGE Miles on travel spends, complimentary lounge access worldwide, and a valuable 1:2 redemption ratio for partner airlines and hotels.
   To know the complete details for this Credit Card, click on the link.

2. American Express Platinum Travel Credit Card: Ideal for domestic travel, this card provides Membership Reward points and significant travel vouchers.
   Check the complete details for this credit card here.

Best Credit Cards for Dining:

3. EazyDiner IndusInd Bank Credit Card: A top choice for food lovers, this card offers a substantial 25% discount on restaurant bills via PayEazy, accelerated reward points on dining spends, a complimentary EazyDiner Prime membership, and even complimentary movie tickets.

4. HSBC Live+ Credit Card: This card is for frequent diners as it provides a significant discount on essential spending categories like dining, food delivery, and groceries, along with cashback on most other spends.

Best Credit Cards for Cashback:

5. Cashback SBI Card: Perfect for online shoppers, this card offers a straightforward 5% cashback on all online purchases without any merchant restrictions and 1% cashback on all offline spends capped at ₹5,000 per statement cycle.
   Click on the link to know about this credit card.

Best Credit Cards for Shopping:

6. Tata Neu Infinity HDFC Bank Credit Card: This co-branded card provides significant value back as NeuCoins on purchases made across the Tata Neu ecosystem and a decent 1.5% back on other spends and UPI transactions.
   Read the complete details of this credit card.

7. Amazon Pay ICICI Bank Credit Card: This lifetime-free card is a must-have for frequent Amazon users. It offers unlimited cashback on Amazon purchases: 5% for Prime members, 3% for non-Prime members, and 2% on payments to Amazon Pay partner merchants.
   Check the complete details for this credit card here.

Best Credit Cards for Fuel:

8. BPCL SBI Card Octane: This credit card is tailored for those with high fuel consumption. It offers 25 reward points for every ₹100 spent on fuel at BPCL, along with accelerated rewards on dining and movies.
   To know the complete details for this Credit Card, click on the link.

9. IDFC FIRST HPCL Power+ Credit Card: This card provides up to 6.5% savings on fuel purchases at HPCL, along with 5% savings on groceries and utility bill payments. These rewards make it a comprehensive option for everyday expenses.
   Check the complete details for this credit card here.

Best Credit Cards for Students:

10. IDFC FIRST WOW Credit Card: This lifetime-free card backed by a fixed deposit is ideal for students or individuals with a limited credit history. It offers 4x reward points on all spends and zero forex markup on international transactions.
    Read the complete details of this credit card.

Best Credit Cards for Business:

11. HDFC Bank Biz Black Credit Card: This metal card is designed for business professionals. It’s a premium card that offers 5X reward points on every ₹150 spent for business spending. It also gives unlimited complimentary airport lounge access globally and exclusive golf privileges.

Best Credit Cards for Entry-level:

12. Airtel Axis Bank Credit Card: This card is a great starting point. It offers a generous 25% cashback on Airtel mobile, broadband, and DTH bill payments, along with 10% cashback on utility bills and spending on Swiggy, Zomato, and BigBasket.
    Click on the link to know about this credit card.

Best Premium Credit Cards:

13. ICICI Bank Emeralde Private Metal Credit Card: A luxurious metal card offering 6 reward points per ₹200 spent, unlimited complimentary domestic and international lounge access, a complimentary Taj Epicure membership, and accelerated rewards through the iShop portal.

14. HDFC Bank Infinia Credit Card: One of the most premium cards, HDFC Infinia, provides 5 reward points per ₹150 spent, unlimited complimentary lounge access worldwide, exclusive benefits at ITC hotels, and up to 10x reward points on travel and shopping via SmartBuy.

15. Yes Bank Marquee Credit Card: This card stands out for its high reward rate of 36 YES Rewardz points per ₹200 spent on online shopping. Plus, it offers unlimited complimentary international lounge access and a low foreign currency markup fee of just 1%.

Here’s a quick summary of all the above-mentioned 15 credit cards and their benefits:

Credit Card Name	Category	Reward/Cashback Rate (%)	Joining/Annual Fee (₹)	Lounge Access	Ideal For
Axis Atlas Credit Card	Travel	2 – 10	5,000	Yes (Domestic & International)	Frequent Travellers
American Express Platinum Travel Credit Card	Travel	1 – 8.5	5,000	Yes (Domestic)	Travel Enthusiasts
EazyDiner IndusInd Credit Card	Dining	0.8 - 2	1,999	Yes (Domestic)	Food Lovers & Frequent Diners
HSBC Live+ Credit Card	Dining	1.5 - 10	999	Yes (Domestic)	Online Food & Grocery Spenders
Cashback SBI Card	Cashback	1 – 5	999	No	Online Shopping Lovers
Amazon Pay ICICI Bank Credit Card	Shopping	1 – 5	0	No	Frequent Amazon Shoppers
Tata Neu Infinity Credit Card	Shopping	1.5 – 5	1,499	Yes (International & Domestic)	Tata Brands’ Shoppers
BPCL SBI Octane Credit Card	Fuel	0.25 – 6.25	1,499	Yes (Domestic)	High Fuel Spenders
IDFC FIRST HPCL Power+ Credit Card	Fuel	0.5 – 5	499	Yes (Domestic)	Frequent Fuel Spenders
IDFC FIRST WOW Credit Card	Student	Up to 0.67	0	No	Students/Senior Citizens
HDFC Biz Black Credit Card	Business	3.3 – 33	10,000	Yes (International & Domestic)	Business Individuals
Airtel Axis Bank Credit Card	Entry-level	1 – 25	500	Yes (Domestic)	Loyal Airtel Users
ICICI Emeralde Private Metal Card	Premium	3	12,499	Yes (International & Domestic)	Frequent Flyers
HDFC Infinia Credit Card	Premium	3.3 – 33	12,500	Yes (International & Domestic)	Frequent Travellers
Yes Bank Marquee Credit Card	Premium	1.25 – 4.5	9,999	Yes (Domestic)	Luxury-Seeking Travellers

The Indian credit card market's vast array of options underscores the importance of aligning card selection with individual spending habits and financial goals. Whether one prioritises travel perks, dining discounts, cashback rewards, or specific shopping benefits, there's a card designed to maximise value in those areas.

How to use a Credit Card wisely?

Platforms like "Maximize Money" offer a unique avenue for credit card users to potentially amplify their rewards and savings through the strategic purchase of gift cards. 

These platforms often provide a marketplace for purchasing gift cards from various retailers, sometimes at a discount or with added benefits like bonus points or cashback on the gift card purchase itself. The synergy between gift card platforms and credit card rewards programs lies in the potential for "double dipping". 

Let’s understand this with an example. Suppose you want to buy a gift card of ₹10,000 for one of your family members. 

• If you choose the traditional UPI method, you’ll have to pay the full amount. 
• But by purchasing the same gift card through Maximise Money, you can instantly save up to 7.5%. 
• And by paying the same gift card with a cashback card credit card, you can save an additional 5% discount (12.5% of savings altogether). 

This strategy is particularly effective for categories where direct credit card spending might not yield optimal rewards.

However, it's important for users to be aware of any potential fees associated with purchasing gift cards and to ensure that this strategy aligns with the terms and conditions of both their credit card and the gift card platform.

How to choose the right credit card?

To utilise a credit card’s full potential, a strategic approach beyond mere usage is essential. This involves a deep understanding of the card's features and aligning spending habits to maximise benefits.

One key strategy is to understand the base conversion rates of reward points offered by the card. 

• The points can often be redeemed for various options, such as cash, travel miles, merchandise, or gift vouchers. 
• The value derived from each point can vary significantly depending on the redemption method. 

For example, travel redemptions, especially through airline or hotel transfer partners, can sometimes offer a higher value per point compared to direct cashback or merchandise redemptions. 

In many cases, these transfers can provide access to better value for flights and accommodations than what might be available through the credit card's direct travel portal.

• Individuals who primarily shop online might benefit more from cards with high cashback rates on e-commerce transactions.
• For those who frequently travel, utilising transfer partners can be particularly rewarding. Credit card reward programs often partner with airlines and hotel chains, allowing users to transfer their accumulated points to these loyalty programs. 

Choosing the right credit card in the first place is paramount to maximising its value. This requires a thorough understanding of one's individual spending habits and needs. 

• Factors such as annual fees, interest rates, and the flexibility of reward redemption options should also be carefully considered before selecting a card.
• It's crucial to ensure that the rewards earned outweigh any associated costs and that the redemption process aligns with the user's preferences. 

Moreover, given the trend of card devaluations, staying informed about any changes in a card's reward structure is vital for continuously optimising its value.

How to save more than 5% with the Cashback SBI Card?

Consider Mr Sharma, who regularly spends ₹3,000 to ₹30,000 per month on groceries, electronics, and other categories.

Here's a table showing exactly how much he can save on each expense category and his total savings for that month if he swipes his Cashback SBI card for these transactions. 

Category	Spend (₹)	Type	Rate (%)	Cashback (₹)
Groceries (Amazon Fresh, BB, Blinkit)	12,000.00	Online	5	600.00
Food Delivery (Zomato, Swiggy)	4,500.00	Online	5	225.00
Online Shopping (Amazon, Flipkart)	20,000.00	Online	5	1,000.00
Electronics / Gadgets (Online)	30,000.00	Online	5	1,500.00
Fashion (Myntra, Ajio)	8,000.00	Online	5	400.00
Flight Booking	15,000.00	Online	5	750.00
Subscriptions	3,000.00	Online	5	150.00
Movie Tickets (BookMyShow, PVR app)	2,000.00	Online	5	100.00
Gifts / Gifting Platforms	5,000.00	Online	5	250.00
Dining Out / Cafes	5,000.00	Offline	1	50.00
Pharmacy	3,000.00	Offline	1	30.00
Misc Expenses	3,000.00	Offline	1	30.00
Total Spend	1,10,500.00			5,085

On spending over a lakh per month, he only saves some ₹5,000. However, if he had used a platform that offers discounted gift cards for popular online retailers, he could have saved much more.

Assuming he buys Amazon and Flipkart gift cards worth ₹5,000 each month through such a platform using his Cashback SBI Card, he would earn an extra 5% cashback.

Additionally, these platforms often offer extra discounts on gift cards, boosting their total savings. Over a year, this strategy can result in 10–15% savings, on top of regular credit card rewards, showcasing the potential of combining credit card benefits with gift card platforms.

Conclusion

The Indian financial landscape is witnessing a clear shift towards the increased adoption of credit cards, driven by their convenience, the rise of digital transactions, and the attractive rewards and benefits provided by card issuers. 

However, in a market flooded with credit card options, finding the right one is all about choosing the one that fits your lifestyle. And the carefully curated list of the top 15 credit cards we've provided above can greatly benefit you in choosing the right card for your wallet. 

If you want to get the most out of your credit card, it is paramount that you use it strategically and choose wisely. This list of the top 15 credit cards can help you understand their features and benefits, align card choices with individual spending habits, and leverage strategies like understanding reward point conversions, utilising milestone benefits, and exploring gift card platforms to earn significant savings and rewards. 

Moreover, it is crucial to approach credit card usage responsibly, always being mindful of the terms and conditions and ensuring timely repayments to avoid the pitfalls of debt and overspending. As credit cards continue their ascendance in India's payment ecosystem, informed and strategic usage will be key to harnessing their full potential.