Credit card rewards: What's the minimum spend to start earning benefits?

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Credit card rewards are one of the most desired benefits cardholders enjoy, like cashback, travel miles, fuel waiver, and shopping rebates. But to make the most out of these offers, you must know one thing: spend minimum. Whether to gain the welcome reward or to gain from regular benefits, it is essential to know the amount on which you must spend. What is a spend minimum requirement?

Minimum spend is the amount you must spend during a given period, usually the first 30, 60, or 90 days after card issuance, to receive early reward points. For example, a card might give you 5,000 reward points if you spend ₹10,000 in the first 60 days. Rewards depend on the card and category.

Others have spends of ₹3,000 or ₹1 lakh or more every month or year to be eligible to retain fee waivers or premium benefits such as lounge access, increased cashback percentages, or milestone rewards.

How much actually do you have to spend?

Minimum spends in India can range from ₹3,000 to ₹1 lakh or more, depending on the card level—entry, mid, or premium.

• Entry cards (such as ICICI Coral, SBI SimplySAVE): often need spends of ₹1,000–₹5,000 a month to receive cashback or exclude annual charges.

• Mid cards (such as HDFC Millennia, Axis Neo): provide more rewards and have spends of ₹10,000–₹25,000 to avail perks such as gift vouchers or reward points.

• High-end cards (such as SBI Elite, HDFC Regalia, Axis Magnus): can request spends of ₹50,000–₹1 lakh over 90 days to qualify for welcome offers or waive charges.

Why do banks require minimum spends?

Minimum spend amounts are also employed by credit card companies to promote good usage and card activation. Spending amounts also assist the banks in clearing out dormant customers and compel consumer spending in travel, retail, or lifestyle—sectors that earn them higher merchant commissions.

Minimum spends: Can they work in your favour

If you’re planning to apply for a rewards credit card, ensure the required minimum spend aligns with your natural spending patterns. Don’t stretch your budget just to chase rewards. Instead, plan your spends around regular expenses—like grocery shopping, utility bills, insurance premiums, or travel bookings.

Also, attempt to submit your card application away from expensive purchases. As an example, applying before making a new phone or flight purchase can enable you to achieve minimum spending requirements without incurring excessive fees.

Stay away from traps

While rewards are profitable, paying only to maintain minimums will hurt you if you don't pay the balance in full due. Interest charges on unpaid balances will wipe out any rewards earned. Pay bills in full and don't make impulse buys in order to earn rewards.

There is not an across-the-board minimum amount to spend to earn credit card rewards—but by category and by card. But by employing planning and moderate spending, you can shine a light behind the curtain without disrupting your finances.