How people Earn, Redeem and Use Credit Cards
In India, people are no longer using credit cards just for payment purposes. They are now optimising their credit card usage to earn rewards, travel better, and access premium benefits like airport lounges and hotel stays.
According to the Reserve Bank of India (RBI), India crossed 113 million active credit cards by Q3 2025, growing at nearly 8% year-on-year.
How Indians Choose and Use Credit Cards
SaveSage conducted a survey in April 2025 to understand how people choose and use credit cards. The findings showed that most people still take a very basic approach.
- 60% of users took whichever credit card was offered by their bank or employer
- 40–50% use the same credit card for all transactions
- 5% researched credit cards proactively before applying
- 5–6% check their credit card reward points monthly
At the same time, usage is increasing:
- 29% now prefer credit cards over debit cards
- 34% use credit cards instead of UPI for large purchases like travel and electronics
From Cashback to Travel: The Shift in Points Redemptions in 2025
Travel redemptions overtook cashback this year, with flights emerging as India’s no.1 Redemption Choice. While many users are still unaware that reward points deliver the highest value when used for travel, those who understand this are already making the most of it.
Based on the latest analytics of 110,000+ SaveSage users tracking 500,000+ credit cards, 600,000 airline loyalty accounts, and 300,000 hotel loyalty programs, here’s how users redeemed their credit card reward points in 2025 .
Around 32% of users redeemed their credit card points for flights or transfers to airline frequent flyer programs (FFPs). This shift was driven by:
- Higher value from airline redemptions compared to cashback
- Growing awareness of reward optimisation
- Rising popularity of travel-centric credit cards
- Continued demand for flight redemptions despite select card devaluations
Overall, SaveSage users redeemed ₹850 crore worth of travel rewards in 2025, with an average return of 15.6% on travel spending.
Some of the most notable redemptions recorded during the year:
- Largest credit card redemption: 12 lakh points transferred from Axis Burgundy Private to Air France Flying Blue
- Largest airline redemption: 6 lakh Virgin Atlantic points for four business-class return tickets (Delhi - London), worth ₹11 lakh in cash.
- Largest hotel redemption: 1.7M Marriott Bonvoy points for 5 nights at Ritz-Carlton Maldives (₹19 lakh value).
- Most unusual redemption: A user redeemed credit card points for… an air purifier filter.
Nearly 35% of all redemptions happened in November and December, driven largely by annual redemption limits and users rushed to maximise benefits in the final months.
How People Earn Credit Card Reward Points
On average, SaveSage users unlocked 7% travel value from credit card rewards, up from 2.4% in 2024. This improvement came from better optimisation, clearer guidance, using the right card for the right spend, and redeeming points for high-value options like travel.
Some high-value transactions stood out:
- Largest transaction: ₹55 lakh Rolex purchase on an Amex Centurion, maximising points earned.
- Highest-value purchase: ₹1.3 crore MHADA flat purchased using ICICI Amazon Pay card, earning 70 basis points in value
- Travel delivers the best ROI: 15.6% reward value
India’s Savviest Credit Card Cities (2025)
Pune emerged as India’s most reward-optimised city, with users earning the highest average reward value on their card spends.
| City | Average CC Rewards Value |
|---|---|
| Pune | 9.60% |
| Bangalore | 8.90% |
| Gurugram | 8.70% |
| Noida | 8.50% |
| Mumbai | 8.30% |
| Delhi | 7.90% |
| Chennai | 7.60% |
| Hyderabad | 7.40% |
| Ranchi | 5.10% |
| Jaipur | 3.50% |
Demographic Insights
Users aged 30–35 emerged as India’s most financially savvy credit card cohort.
| Age Group | Average CC Rewards Value |
|---|---|
| 18 - 25 | 3.10% |
| 25 - 30 | 5.20% |
| 30 - 35 | 11.00% |
| 35 - 40 | 8.60% |
| 40 - 45 | 8.30% |
| 45 - 50 | 6.20% |
| 50+ | 2.90% |
Underused Credit Card Benefits
Many premium credit card benefits remain unused, even by eligible users.
- 45% of users did not use lounge access at all
- Less than 1% used complimentary golf access
- Only 0.3% used airport spa access
- 75% never used card-linked insurance benefits
- 50% never used concierge services
Most popular loyalty programs
Most Redeemed Airline Program - Air India Flying Returns , Air France
Popular routes included Delhi → Mumbai domestically and Delhi → Dubai internationally.
Most Redeemed Hotel Loyalty Program - Marriott Bonvoy, All Accor
Popular properties included The Westin Himalayas, Rishikesh, and Novotel Goa Resort & Spa.
What 2025 Reveals About Credit Card Usage in India
India’s credit card and travel rewards behaviour is maturing rapidly:
- Users are shifting decisively from cashback to high-value travel redemptions.
- Awareness of optimisation is rising sharply.
- Tier-2 cities are emerging as high-growth markets.
- Travel remains the biggest driver of value, aspiration, and savings.
SaveSage’s 2025 data reflects a country becoming more intentional about how it spends, earns, and travels, laying the foundation for even smarter credit card usage in the years ahead.
At Savesage - We help you optimise your credit card rewards and loyalty programs in a simple and clear way. With the SaveSage app, you can keep track of your credit cards, reward points, and offers in one place, while the built-in AI assistant and regular updates help you stay informed and make better decisions without confusion.
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