Choose Your Card Wisely
The first step to earning travel rewards is picking the right credit card. Not all cards are created equal, especially at the entry level. You have two main options: co-branded travel cards and general rewards cards. Co-branded cards, like the Standard
Chartered EaseMyTrip Card or an airline-specific card like the Axis Bank Vistara Signature Credit Card, offer direct benefits with a particular travel partner. For instance, you might get instant discounts on bookings or earn miles directly with that airline. General rewards cards, on the other hand, offer points on all spending, which can then be converted into air miles or hotel points with various partners. Cards like the HDFC Regalia Gold offer reward points that can be transferred to airline partners, giving you more flexibility. For a beginner, a card with a low annual fee and a straightforward rewards program is often the best choice. Some cards are even lifetime-free, like the Scapia Federal Bank Credit Card, which offers unlimited domestic lounge access if you meet a monthly spending target.
Focus on Accelerated Rewards Categories
Most credit cards offer accelerated rewards on specific spending categories. The key is to match your highest monthly expenses with a card that rewards them generously. For example, some cards offer extra points on dining, groceries, or online shopping. The HDFC Regalia Gold card, for instance, provides accelerated points at partner outlets like Myntra and Reliance Digital. Similarly, the Airtel Axis Bank Credit Card offers significant cashback on utility bills paid through the Airtel Thanks app and on spending with partners like Zomato and Swiggy. Before choosing a card, analyse your spending for a month or two. If you spend a lot on groceries and dining, find a card that gives you 3x or 5x points in those areas. This strategy ensures you're earning the maximum possible points from your existing budget without spending more.
Turn Daily Essentials into Points
Don't underestimate the power of small, recurring payments. Many people pay for utilities like electricity, gas, and mobile recharges directly from their bank accounts, earning zero rewards. By channelling these payments through the right credit card, you can accumulate a steady stream of points. Cards like the Axis Bank ACE Credit Card offer cashback on utility bill payments made via specific platforms. Even rent payments can sometimes be made via credit card through third-party apps, although you should always check for convenience fees that might outweigh the rewards. While some banks have started placing limits on rewards earned from utility payments, many cards still offer a base reward rate that makes it worthwhile. The trick is to automate these payments on your card, so you consistently earn points every month without any extra effort.
Understand the Power of Point Transfers
Earning points is only half the battle; redeeming them wisely is where the real value lies. Redeeming points for merchandise or direct cashback often provides the lowest value. The best way to maximise your rewards for travel is by transferring them to airline frequent flyer programs or hotel loyalty programs. For example, a card like the Axis Bank Atlas allows you to transfer your EDGE Miles to various airline and hotel partners, often at a favourable ratio like 1:2, effectively doubling their value. Before you commit to a card, research its transfer partners. If you prefer flying a particular airline, ensure your card's points can be transferred to that airline's loyalty program. This strategy requires a bit more research but can turn 10,000 points into a flight ticket instead of just a ₹2,000 shopping voucher.
Don't Forget Welcome Bonuses and Lounge Access
Many entry-level cards attract new customers with generous welcome bonuses. These can range from a significant number of bonus points to flight vouchers after you meet a certain spending threshold in the first few months. The Axis Bank Atlas Credit Card, for example, offers 2,500 EDGE Miles as a welcome bonus after your first transaction. These bonuses can give your travel fund a powerful initial boost. Another valuable perk, even on entry-level cards, is complimentary airport lounge access. Cards like the Axis Bank ACE and HDFC Regalia Gold offer a set number of free domestic lounge visits per year, which can make your travel experience much more comfortable. Some cards require a minimum quarterly spend to unlock this benefit, so be sure to read the terms.
