The Slow Erosion of Reward Points
The most significant shift in the credit card landscape is the quiet but steady devaluation of reward points. This means the points you diligently collect are worth less today than they were last year. Banks are revising redemption values, capping how
many points you can earn in certain categories, and even introducing expiry dates on points that were once perpetual. For example, some issuers no longer offer reward points on fuel transactions, a major spending category for many households. This trend forces a critical question: are you hoarding points for a grand vacation that gets more expensive to redeem with each passing month? The expert advice is clear: earn and burn. Redeem your rewards regularly to protect their value from future devaluations.
The Myth of 'Free' Airport Lounge Access
Complimentary airport lounge access has long been a celebrated perk of premium cards. However, this benefit is becoming increasingly conditional. Spurred by overcrowding and rising costs, banks are aggressively tightening the rules. Many major card issuers in India have introduced minimum spending requirements. For instance, several HDFC Bank cards now require a spend of at least ₹60,000 in the preceding quarter to grant lounge access. Other banks have followed suit, linking access to quarterly spending targets. Some co-branded cards have removed the benefit altogether. As of April 2026, even popular cards like the RuPay Platinum Debit Card have had their complimentary lounge access withdrawn entirely. The takeaway is that this perk is no longer a given; it's a reward reserved for high-spending customers.
Co-Branded Cards: A Double-Edged Sword
Co-branded cards, which partner with specific airlines, hotel chains, or retailers, promise accelerated rewards within that brand's ecosystem. They can offer tremendous value if your spending habits align perfectly with the partner brand. However, this loyalty comes at a cost. The rewards are often less valuable or difficult to redeem outside that specific brand. Furthermore, these cards are not immune to devaluation. Recent changes have seen some co-branded cards reduce cashback caps or alter their reward structures, making them less attractive. Before committing, you must assess if your loyalty to a single brand is strong enough to justify the card's annual fee and potential inflexibility compared to a standard cashback card.
Watch Out for Rising Fees
The value of rewards can be quickly cancelled out by a variety of fees. Annual fees on some premium cards are on the rise, and the spending required to get them waived is also increasing. Beyond the annual charge, banks are introducing new fees for services that were once free. This includes fees for redeeming reward points for statement credit, processing fees on utility bill payments over a certain threshold, and higher charges on rent payments made via credit card. These small charges add up, eating into the net benefit you receive from your rewards program. A card is only truly beneficial if the value of the rewards you realistically earn and use exceeds the total cost of all associated fees.
Your New Rewards Strategy
It's time for a credit card audit. Start by reviewing your spending over the last year. Does it align with the bonus categories of your current cards? If not, a simple, no-fuss cashback card might offer more straightforward value. Always pay your balance in full each month; interest charges are the fastest way to negate any rewards earned. Read every communication from your card issuer, as this is where devaluations and new fees are announced. Don't chase rewards by overspending. The goal is to get value back on your regular expenses, not to create new ones. By adopting a more strategic and realistic approach, you can ensure your credit cards are working for you, not the other way around.
