Inspite of working in bank I never realized I’d been doing it all wrong. It was a random Friday evening I came from office, and sat at my kitchen table with a glass of water and my eye got stuck on the email regarding credit card statement from the bank. In office I had a discussion with my friend Maya who told me she’d earned enough points for a free vacation to Kerala. So I thought let’s have a look and I was shocked to see that I’d spent roughly the same amount over the year and had Rs 500 in cash back. That’s when it hit me that I wasn’t broke because I didn’t make enough money. I was leaving money on the table because I didn’t understand how to use the tools I already had.

That realization changed everything for me. And today, I want to share what I’ve learned, not as a financial expert talking down to you, but as someone who’s been exactly where you might be right now.

The Grocery Store Awakening

Let me take you back to where my journey really began. I was at Big Bazaar, my favorite weekend ritual. Cart full of organic vegetables, fancy snacks, and groceries. The total came to Rs 10000/-. I mindlessly handed over my basic bank credit card, the same one I used for everything.

Later that month, I did the math. I was spending about Rs 25000/- a month on groceries. With my 1% card, I was getting Rs 250/- back each month. Then I discovered that some cards give 6% back on groceries. That would be Rs 1500/- a month. The difference? Rs 15000/- a year just only on groceries. That’s almost a month’s worth of free groceries just for using a different piece of plastic. But here’s what really got to me it wasn’t about the money alone. It was about feeling smart with my choices. It was about taking control of something I’d been doing on autopilot for years.

So I got a grocery rewards card. And you know what? The first time I used it and saw that 6% cash back hit my account, I actually smiled at my phone. My husband thought I was crazy. But I felt like I’d unlocked a secret level in a game I didn’t even know I was playing.

The cards that changed my grocery game was American Express Blue Cash Preferred has been my go-to, though I know it has an annual fee. For those starting out, look for cards with rotating grocery categories or no-fee options. The “best” card is the one you’ll actually use consistently.

The Petrol Station Reality Check

My wake-up call at the petrol pump came during a road trip last summer. We were driving to visit family, and I stopped at a petrol station in the middle of nowhere. As I watched the numbers climb on the pump, I thought about how much we spend on petrol every year. I drive a lot for work. Between my commute and weekend errands, I was filling up almost weekly. That’s roughly Rs 5000/- a month, or Rs 60000 a year. With my old 1% card, I was getting Rs 600/- back annually. When I switched to a card giving me 3% on gas, that became Rs 1800/-. It’s not life-changing money, but it’s the principle why wouldn’t I take an extra money just for paying attention?

But here’s the deeper truth I learned that these small optimizations aren’t about pinching pennies. They’re about respecting your own money enough to make it work harder for you. Every time I swipe my Indian Oil Credit card now, it’s a tiny reminder that I’m in control of my financial life.

Real talk: Some Credit cards give you more back at specific chains. I don’t drive out of my way for an extra half percent, though. Life’s too short. I found a card that works at most stations and called it a day.

The Dining Dilemma (And Why It Matters More Than You Think)

Here’s something vulnerable I want to share about me I used to feel guilty about eating out. Like, really guilty. My parents were from lower middle class who saved every penny, and here I was, spending my money on eating out when I could make that at home. But I got my realization that life is meant to be lived. Eating out isn’t always about being lazy or wasteful. Sometimes it’s about celebrating a promotion, catching up with an old friend, or simply giving yourself a break after a brutal week. Once I made peace with that, I decided this that if I’m going to spend money on dining, I should at least be strategic about it. I got a card that gives me 4% back on restaurants. At first, the impact seemed small. But over a year of beautiful dinner nights, birthday dinners, quick lunches during hectic work days, and yes, probably too many late-night zomato/ swiggy orders, that 4% added up to over Rs 2000/- in rewards.

More importantly, I stopped feeling guilty. Each purchase became intentional. I wasn’t just mindlessly swiping anymore. I was making choices, conscious ones, about what brought value to my life.

Something most people miss: Food delivery apps usually count as dining! So those nights when you’re too exhausted to cook? Still earning rewards. That feels like a small win when you need one.

Travel: Where This Strategy Gets Exciting

I never used to be a “travel person.” It felt like something for other people, people with more money or fewer responsibilities. But my perspective shifted when I realized that travel cards aren’t just about luxury vacations. They’re about visiting family across the country without the trip costing a month’s rent. They’re about finally taking that honeymoon you postponed. They’re about making memories that matter.

My travel card has become my most treasured financial tool, not because of the points (though those are nice), but because of what those points represent and that is freedom. The freedom to say yes when my best friend gets married in Chandigarh. The freedom to visit my aging parents without calculating whether I can afford it. The freedom to show my kids that the world is bigger than our neighborhood. When I book travel now, I use a card that gives me 3-5x points. But the real magic? The protections that come with it. Last year, our flight got cancelled due to weather. The trip delay insurance covered our hotel. That peace of mind? That’s worth more than any points multiplier.

What I wish I’d known earlier: Travel cards seem intimidating with their annual fees and complex point systems. Start simple and find one that offers straightforward points on travel purchases and decent protections.

The Mental Game: Tracking Without Losing Your Mind

Let me be honest with you when I first started this strategy, I was obsessed, I had spreadsheets since I excel was my favorite. I had reminders. I was that person at checkout carefully selecting cards while people waited behind me in line. My husband staged an intervention. “Sangeeta,” he said, “you’re spending more mental energy on choosing cards than the rewards are worth.” He was right. I’d turned something meant to make life easier into another source of stress. So I simplified everything:

I stick to four cards now. One for groceries, one for petrol, one for dining, and one flat 2% card for everything else. That’s it. Could I optimize more? Sure. But the difference between perfect optimization and my simple system is maybe Rs 5000 a year, and my sanity is worth more than that.

I set up autopay on everything. This was non-negotiable. I’ve worked too hard on my credit score to risk a missed payment because I’m juggling multiple cards. Every single card pays the full balance automatically. I never carry a balance. The rewards mean nothing if you’re paying interest.

I spend ten minutes once a month reviewing. Just ten minutes. I look at where my money went, whether I used the right cards, and if anything has changed in my life that would warrant a different strategy. That’s it. No spreadsheets. No obsessing now.

The breakthrough came when I realized this that financial wellness isn’t about perfection. It’s about systems that work with your life, not against it.

The Mistakes That Taught Me Everything

I need to tell you about the year I messed up. Really messed up. I got caught up in the sign-up bonus craze. Every few months, I’d open a new card for the bonus points (Being a banker makes you do this). I thought I was gaming the system. Instead, the system gamed me. My credit score dropped. I had cards I couldn’t keep track of. I missed an activation deadline for rotating categories and lost out on rewards. I felt overwhelmed and stupid. That low point taught me something crucial that credit card strategy isn’t about collecting cards like trophies. It’s about building a sustainable system that supports your life goals without consuming your mental energy.

I also learned the hard way about annual fees. I kept a card with a Rs 3000/- annual fee because I loved the idea of it, even though I wasn’t using the benefits enough to justify the cost. When I finally did the math, that card was actually costing me money. Paying to lose money. How’s that for irony? The lesson? Every card in your wallet should earn its place. If you’re paying an annual fee, that card should be giving you at least three times that value back. Otherwise, it’s just expensive plastic taking up space.

What This Is Really About

Here’s what I’ve come to understand after years of figuring this out that choosing the right credit card for each purchase isn’t actually about credit cards at all. It’s about intentionality. It’s about refusing to go through life on autopilot. It’s about recognizing that you have more power over your financial future than you think. Every time you pause for two seconds to choose the right card, you’re not just earning a few extra money. You’re practicing mindfulness about your money. You’re building a habit of paying attention. You’re proving to yourself that you’re capable of making smart financial decisions.

And that mindset? That confidence? It spills over into everything else. You start questioning other financial habits. You start looking for other areas where small optimizations can make a difference. You start believing that maybe, just maybe, you can take control of this whole money thing.

Where You Can Start Right Now

If you’re feeling overwhelmed, let me give you permission to start small. You don’t need to overhaul everything today. This week, just do one thing, pull out your credit cards and look at what rewards each one offers. Really look and just read the terms. You will understand what you have. Next week, pick one category. Maybe it’s groceries because that’s your biggest regular expense. Or maybe it’s petrol because you commute. Whatever it is, commit to using the best card you have for that one category.

That’s it. No pressure to be perfect. No judgment if you forget sometimes. Just one category, one conscious choice at a time.

As you get comfortable, add another category. Then another. Before you know it, it becomes second nature. You won’t even think about it anymore. It’ll just be what you do. And here’s the beautiful part that even if you only optimize your top three spending categories, you’re probably capturing 70-80% of the potential rewards. Don’t let perfect be the enemy of good.

The Truth About Why This Matters

I want to close with something that might sound cheesy to you, but I mean it with my whole heart, trust me:

Learning to strategically use credit cards changed my relationship with money. Not because I suddenly had more of it, but because I stopped feeling like money was something that just happened to me. I started feeling like money was something I could work with, plan around, and make decisions about. Now, this strategy has paid for groceries during tight months specially during festive seasons. It’s funded family vacations we thought we couldn’t afford. It’s given me the freedom to support causes I care about without stretching my budget. But more than any of that, it’s given me confidence. The confidence to know that I’m not leaving money on the table. The confidence to make informed choices. The confidence to teach my own kid that being smart with money isn’t about deprivation, it’s about making your money work as hard as you do.

You don’t need to be a financial expert to do this. You don’t need perfect credit or a huge income. You just need to be willing to pay attention and make choices that align with your values and goals. So here’s my question for you: What’s one spending category you could optimize this week? Not three, not five. Just one. Start there. I promise, it gets easier.

And if you ever feel overwhelmed or confused, remember: I’ve been there. I’ve made the mistakes. I’ve felt the frustration. But I also know the freedom that comes from taking control, one intentional swipe at a time.

You’ve got this.

About Smart Credit with Sangeeta: I’m just a regular person who figured out how to make credit cards work for me instead of against me. I share what I’ve learned because I believe financial wellness should be accessible to everyone, not just people with finance degrees. This is your space to learn, ask questions, and realize that you’re capable of more than you think.

Your Credit Card Questions Answered

After sharing my credit card strategy with hundreds of readers, I keep getting asked the same questions over and over. So I decided to put together this FAQ to address your biggest concerns and confusion. Think of this as the conversation we’d have over coffee after you read my main post.

The Basics

“Will having multiple credit cards hurt my credit score?”

This is the question that stopped me in my tracks when I first started. The short answer? No, multiple cards won’t hurt your score if you manage them responsibly. Here’s what actually matters paying on time (that’s 35% of your score) and keeping your utilization low (that’s 30%). In fact, having multiple cards can actually help your score because it increases your total available credit, which lowers your utilization percentage.

“How many credit cards is too many?”

I struggled with this one personally. At my peak, I had eight cards. It was exhausting. I couldn’t remember which card was which, I missed activation deadlines, and I felt like I needed a spreadsheet just to buy groceries.

For most people, including me now, the sweet spot is 3-5 cards. Here’s my current setup:

• One for groceries (6% back)
• One for gas (3% back)
• One for dining (4% back)
• One flat-rate 2% card for everything else

That’s it. Four cards. Simple, effective, manageable to me. Could I optimize more with additional cards? Sure. But the mental overhead isn’t worth the extra Rs 2000/- a year I might earn. Life’s too short.

“What if I forget which card to use?”

Oh friend, I’ve been there. In the beginning, I’d stand at checkout looking at my cards like they were a final exam I didn’t study for. Here’s what worked for me I took a photo of my cards and made notes on my phone about what each one is for. “Blue card = groceries, Red card = gas” and so on. After about three weeks, it became automatic. Now I don’t even think about it.

Also, give yourself grace. If you accidentally use the 2% card instead of the 4% dining card once, you’re not losing life-changing money. You’re still earning rewards. You’re still doing better than you were before. Progress, not perfection.

The Strategy Questions

“Should I pay annual fees for credit cards?”

This was a huge mental block for me. Paying Rs 5000/- just to have a credit card? It felt wrong. But here’s how I think about it now: it’s not about the fee, it’s about the value equation. If a card costs Rs 5000/- per year but I’m earning Rs 15000 in rewards annually, that’s a Rs 10000/- net gain. That’s worth it.

However, if you’re not spending enough in the bonus categories to justify the fee, skip it. There are plenty of excellent no-annual-fee cards out there. I actually started with all no-fee cards and only added one annual fee card after a year when I knew my spending patterns.

My rule: An annual fee card should give you at least 3x the fee back in rewards. Otherwise, it’s just expensive plastic.

“What about rotating category cards? Are they worth the hassle?”

I have mixed feelings about these. Some cards give you 5% back on rotating categories that change every quarter (like petrol one quarter, groceries the next, online shopping another).

The rewards can be great, but you have to activate the categories each quarter or you miss out. I learned this the hard way when I forgot to activate and lost three months of 5% rewards on petrol. I was so frustrated with myself. If you’re organized and don’t mind setting quarterly reminders, these cards can be valuable. But if you know yourself and you’re likely to forget, stick with cards that have consistent categories year-round. The best card is one you’ll actually use correctly.

“Is cash back better than points or miles?”

This depends entirely on your lifestyle and what you value. I used to be all about cash back because it felt simple and concrete. Points felt complicated and confusing. But then I realized I was leaving value on the table. Travel points, when redeemed strategically for flights or hotels, can be worth 1.5-2 cents per point, while cash back is always worth exactly 1 cent per cent.

Here’s my current approach: I use cash back cards for everyday spending (groceries, petrol, dining) because it’s straightforward. But for travel spending, I use a points card because I actually travel now and the extra value matters.

Bottom line: If you rarely travel, cash back is probably simpler and better. If you travel even 2-3 times a year, a travel card might give you more value. There’s no wrong answer, just what works for your life.

“Should I put my bills on autopay with credit cards?”

Yes, absolutely, but with one massive caveat that only if you’re paying off the full balance every single month. I put everything possible on credit cards like utilities, insurance, phone bill, streaming services, even my kid’s daycare when they allow it. Why? Because I’m earning 2% back on expenses I’d pay anyway.

So yes, put bills on cards for the rewards. But you must pay the full balance monthly. If you can’t do that consistently, this strategy isn’t for you yet, and that’s okay. Build that foundation first.

The Worry Questions

“What if I get into debt doing this?”

This is such an important question, and I’m glad you’re asking it. It means you’re being thoughtful and realistic. The truth is, credit cards are tools. Like any tool, they can help you or hurt you depending on how you use them. A hammer can build a house or smash your thumb. Credit cards can earn you rewards or trap you in debt.

My personal rule is I never spend money on a credit card that I don’t already have in my checking account. Never. The card is just a payment method that earns rewards, not a way to buy things I can’t afford.

If you’re currently carrying a balance, dealing with credit card debt, or struggling with overspending, put the rewards strategy on hold. Focus on paying off debt and building healthy spending habits first. The rewards will still be there when you’re ready, and they’ll be so much sweeter when you’re earning them from a place of financial stability.

“I have bad credit. Can I still do this?”

I hear the discouragement in this question, and I want you to know: yes, you can still be strategic with credit, but your journey might look different than mine right now, and that’s completely fine. Start with what you can get. Maybe that’s a secured card or a basic card with lower rewards. Use it responsibly, pay on time every single month, keep utilization low. As your credit improves, better cards will become available to you.

“What if I’m not good with money?”

First, let me challenge that belief. The fact that you’re here, reading this, asking questions? That’s being good with money. Being good with money isn’t about being perfect, it’s about being willing to learn and improve. I used to tell myself I was “bad with money” too. It was a convenient excuse to not try, to not take responsibility. But eventually I realized that story was holding me back from the financial life I wanted.

Start small. Maybe you begin with just one rewards card for one category. Maybe you only check your accounts once a week at first. Maybe you mess up and forget to pay on time once (set up autopay immediately after!). Every money skill is learnable. You’re not born knowing this stuff. I certainly wasn’t. I learned through mistakes, questions, research, and slowly building better habits. If I can do it, I promise you can too.

The Practical Questions

“How do I choose my first rewards card?”

Think about where you spend the most money consistently. For most people, that’s groceries, petrol, or dining. Pick one category, find a card with good rewards in that category, and start there. Don’t overthink it. Your first rewards card doesn’t have to be perfect. It just has to be better than what you’re currently using. You can always add more cards later as you get comfortable.

I recommend starting with a no-annual-fee card so there’s no pressure or risk. Get comfortable with the rhythm of using it and paying it off before you add complexity.

“Can I use this strategy if I’m on a tight budget?”

Absolutely, and in some ways, this matters even more when money is tight. If you’re already carefully tracking every dollar, why not earn rewards on those rupees? In fact, some of my tightest budget months were when I was most grateful for my credit card strategy. That 6% back on groceries meant an extra Rs 2000/- that month, which paid for petrol or covered an unexpected expense.

Just remember: the strategy only works if you’re not overspending to “earn more rewards.” The rewards are the cherry on top, not the reason to buy something.

“What about small local businesses that prefer cash or charge fees for credit cards?”

This is where personal values come into play. I support several small local businesses, and some add a 3-4% fee for credit card transactions. In those cases, I pay with cash or debit. The relationship and supporting their business matters more to me than the 2-3% rewards I’d earn. But for large corporations and chains? I’m using my rewards cards every single time. They’ve already factored credit card fees into their pricing. I might as well benefit.

“How often should I review my card strategy?”

I do a quick review every 3-4 months. I look at:

• Am I still using each card enough to justify keeping it (especially if it has an annual fee)?
• Have my spending patterns changed?
• Are there new cards that might fit my life better?
• Am I activating rotating categories if I have those cards?

This takes maybe 15 minutes. That’s it. I’m not obsessively optimizing. I’m just making sure my strategy still fits my actual life. Life changes. Maybe you move and your commute changes, affecting travel spending. Maybe you have a baby and grocery spending skyrockets. Your card strategy should evolve with you.

One Last Question I Ask Myself

“Is this still serving me, or am I serving it?”

Every few months, I ask myself this question about my entire credit card strategy. If I find myself stressed, overwhelmed, or spending more time thinking about cards than I want to, I simplify. If I realize I’m not using a card enough to justify the annual fee, I cancel it. If the strategy has become a burden rather than a tool, I adjust.

The strategy exists to serve your life, not the other way around. The moment it stops serving you, change it.

Your Question Here

Didn’t see your question answered? Drop a comment or email me. I read everything, and I’ll either respond directly or add it to this FAQ for others who might be wondering the same thing.

Remember: there are no stupid questions when it comes to money. We’re all learning, all the time. I’m still learning too.