Are credit card purchase milestones worth pursuing? A reality check

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Credit card "spend-based offers" or milestones reward users with bonus points or rewards for achieving certain spending thresholds within a specific timeline. For example, HDFC Bank's Tata Neu Infinity credit card recently introduced an "International Spends Milestone Offer," where it gave users 2,500 NeuCoins if they spent ₹75,000 outside India in May 2025 (livemint.com). But first, consider deconstructing if such offers actually provide value—instead of promoting wasteful spending.

What are spend-based offers?

Spend-based offers ask cardholders to accumulate a specified number of purchases in a period—usually a month or through special occasions such as festivals. Rewards could be bonus points, gift certificates, or faster loyalty rewards. As Mint puts it, the NeuCard International Spends offer, for instance, makes rewards 3.3% more effective on qualifying transactions.

These promotions range in format: some are monthly, and others cover a festive period or quarter. Many complement existing rewards—like speeding up milestone levels, achieving airport lounge privileges based on spend, or paying into the waiver of yearly fees .

Possible benefits of reaching milestones

Engaging in spend-based promotions can bring real rewards if entered into strategically. Cardholders receive bonus rewards or coupons, sometimes in addition to base points, merchant promotions, and co-branded rewards. Spending toward thresholds also contributes to other card objectives, like unlocking free lounge access or completing spend requirements necessary to waive annual fees.

When these spending goals coincide with budgeted expenses—such as a vacation, large purchase, or bills—these types of offers can generate worthwhile incremental rewards without blowing your budget.

The hidden cost of pursuing offers

The actual risk comes when we spend more than we should just to meet a spending requirement. Mint advises that you never push your budget to meet an offer. If the spend needed is well above what you'd normally spend, the rewards usually aren't worth the financial burden.

This dynamic is similar to American trends: a Bankrate survey found that 72% of American cardholders carrying a balance still chase rewards—even when accumulating costly unpaid interest. Rewards are great, but only if you’re able to pay in full and avoid interest each month.

Accumulating debt to earn a small bonus can result in paying far more in interest than the offer is worth.

Check the fine print and stay disciplined

Anticipate that such offers will come with eligibility requirements, usually registration or optical buying categories. Always see what spends are included—some offers don't include categories such as fuel, EMI, or wallet recharges. Also, see if the offer is available to only certain users or attached to particular card types.

If you’re working toward long-term milestones like annual fee waivers or lounge access, offers can accelerate that progress—but only if those spends were already planned.

Is it worth it for you?

The choice is straightforward: only go for milestones if the spend needed matches your natural spend. If ₹75,000 worth of foreign miles fits into your travels or future abroad sojourns, the deal can be good. But overspending just to pursue rewards is a dangerous shortcut to financial misery.

Credit card milestones are an intelligent way to maximize your rewards—so long as you don't get sidetracked financially. Hunker down to your budget, select offers that match forecasted spending, and never allow a bonus to encourage spending that's not needed. If done correctly, the deals provide real benefits; if done incorrectly, they mean unnecessary expenses and debt.