Debunking Common Misconceptions About Credit Card Rewards

Author

Yash Khetani

15 Jan 2025

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3 minutes read

Debunking Common Misconceptions About Credit Card Rewards

Debunking Common Misconceptions About Credit Card Rewards

Credit card rewards programs can be a game-changer for savvy users who know how to maximize them. However, there are many misconceptions that hold people back from reaping their full potential. Let’s clear the air and debunk some common myths about credit card rewards in India.

Myth 1: Rewards Are Only for Big Spenders

Reality: Rewards are for everyone! Many assume you need to splurge to benefit from rewards. However, with cards like HDFC Millennia or Axis Ace, even small, everyday purchases like groceries or utility bills can earn cashback or points. It's not about spending more but spending smartly.

Myth 2: Annual Fees Cancel Out the Benefits

Reality: Many cards waive annual fees if you meet certain spend criteria. Even cards with fees often provide sign-up bonuses, lounge access, or free movie tickets that far outweigh the fee. Cards like the SBI SimplyClick and ICICI Amazon Pay offer significant value at low costs.

Myth 3: Points Expire Before You Can Use Them

Reality: While some reward points have an expiry, many premium cards, like the Axis Magnus or American Express Membership Rewards, offer long validity periods. Proactively tracking your points via apps like SaveSage ensures you never miss out on redeeming them.

Myth 4: Redemptions Are Too Complicated

Reality: Redemption processes have become seamless with user-friendly portals and apps. Whether it's converting points into air miles or redeeming for vouchers, platforms like HDFC SmartBuy or Amex Membership Rewards simplify the experience.

Myth 5: Cashback is Better Than Points

Reality: While cashback offers instant gratification, points often provide greater value. For example, converting Axis Magnus points to air miles can save you 20-30% on international trips. It's all about knowing the redemption options.

Tips to Maximize Rewards:

  • Always check for ongoing offers like Axis Edge Rewards or ICICI Culinary Treats.
  • Use category-specific cards for expenses (e.g., dining, travel, shopping).
  • Plan big purchases during festive sales to maximize point multipliers.

Conclusion

Credit card rewards are a treasure trove waiting to be unlocked. With the right strategies and tools like SaveSage to track and optimize your points, you can turn everyday expenses into extraordinary savings. Remember, it’s not just about spending—it's about spending wisely.