# Using the wrong credit card could quietly cost you up to ₹2 lakh a year in lost rewards

> A study found that nearly 92% of people are using credit cards that don't match their spending habits, leaving them short of thousands and in some cases over ₹2 lakh a year in rewards and cashback.

**Type:** article · **Category:** Money · **Published:** 2026-06-30 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/money/kredita-karda-se-hara-mahine-paisa-bachane-ka-mauka-hatha-se-ja-raha-janie-vo-chuka-jo-apako-hara-sala-lakhon-ka-nukasana-kara-rah-3699 · **Language:** English
**Tags:** credit card, reward points, cashback, personal finance, credit card selection, savings tips

Treating a credit card as nothing more than a way to pay bills is an outdated idea. Used wisely, the same card can put real money back into your pocket. The trouble begins when people pick up any card without first understanding their own needs and spending patterns. As a result, the rewards, cashback and other perks they should be earning either arrive in part or slip away entirely.

A finance study has laid this out clearly. It found that because of poor card choices, many people miss out on benefits ranging from thousands of rupees to as much as ₹2 lakh every year. Financial experts put it simply: real savings come only when the right card meets the right way of using it.

## What the study found
The study examined the spending and reward patterns of 129 credit card users, and the result was striking. Around 92% were using a card that did not match the way they actually spent. Because of this, the rewards and cashback they earned fell short of what was possible. On average, most people were getting back only about 4% of their total spending as rewards. With the right card and the right strategy, that figure can climb to 10%. For heavy spenders, the benefit can even reach 13% to 14%.

## How much you lose, by spending level
The size of the loss depends on how much you spend in a year. Those with annual credit card spending of up to ₹5 lakh could be missing out on roughly ₹20,000 to ₹25,000. People spending between ₹5 lakh and ₹8 lakh stand to lose ₹38,000 to ₹42,000. If annual spending falls between ₹8 lakh and ₹15 lakh, the amount left on the table can be around ₹85,000 to ₹90,000. And for those spending more than ₹15 lakh a year, this potential loss can run past ₹2 lakh annually.

## Where people go wrong
According to experts, the most common mistake is sticking to a single card for every kind of expense. Different cards offer different benefits across categories such as groceries, travel, online shopping, dining and fuel. The second big slip-up is around reward points, many people simply do not redeem them at the right time or in the right way. In several cases, the value of those points through travel bookings or brand vouchers can be many times higher than ordinary cashback. Yet for lack of awareness, people leave this extra benefit unclaimed.

## How to pick the right card
The expert advice is straightforward. Start by reviewing your spending over the past 6 to 12 months and identify which categories take up the most money. Then choose a card that covers around 60% to 70% of your regular spending. If needed, you can keep a second card that offers better rewards in the remaining categories. On top of that, it is important to keep using your reward points from time to time and to stay alert to the offers your card runs. With a little planning, a credit card can become a reliable means of saving rather than just a way to spend.

## What this means for you
- **For your wallet:** If your card doesn't match your spending habits, you could be losing anywhere from ₹20,000 to over ₹2 lakh a year in rewards and cashback, depending on how much you spend.
- **What to do:** Review your last 6 to 12 months of spending, pick a card that covers 60% to 70% of it, and redeem reward points on time through travel bookings or vouchers for higher value.

## Questions & Answers

### 1. How many people were covered in the study?
The study analysed the credit card spending and reward patterns of 129 people.

### 2. What share of people are using the wrong card?
According to the study, around 92% of people are using a card that does not match their spending habits.

### 3. How much of their spending do most people get back as rewards?
On average most people earn back only about 4% of their total spending as rewards, though the right strategy can push this to 10%.

### 4. How much can heavy spenders earn?
For customers who spend a lot, the reward benefit can reach as high as 13% to 14%.

### 5. How much can those spending over ₹15 lakh lose?
People spending more than ₹15 lakh a year could face a potential loss of over ₹2 lakh annually.

### 6. How do you choose the right credit card?
Review your spending over the past 6 to 12 months and pick a card that covers around 60% to 70% of your regular spending.

### 7. What mistake do people make with reward points?
Many fail to redeem points at the right time and in the right way, even though travel bookings or brand vouchers can make them worth many times more than ordinary cashback.

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