[nkapoor777]

Originally Posted by Oxy

Just received my American Express Gold Card yesterday. It doesn't have any preset credit limit. I have the freedom to spend as much as I want to, but the downside (not for me though) is, I have to pay the amount in full every month, i.e. there is no "minimum amount" concept.

The points earning potential looks pretty good. I will be getting a 1000 bonus points every month if I swipe the card four times a month or more for Rs. 250 or more per transaction.

It's free for the first year. They will be charging me Rs. 4500 plus taxes from the next year onwards. In return for this Rs. 4500 renewal fee, I will get 5000 reward points.

Does anyone else have this card? Do you guys feel the renewal fee would be worth paying? Any feedback from existing Amex Gold Card customers would be a huge help.

Been using it for the last 10 months - my first Amex card (have always detested cards with joining/renewal fees). Renewal coming up in April'12. The reward points accumulation and conversion value is good but not really the best. I definitely won't go for renewal if they don't waive the full fee off.

Originally Posted by rajesh1868

Im using the same since last 5 months. I think they credit some extra points if you continue next year.

Also you get 4 times reward point for transactions done on weekends.
One drawback I see is that not all establishments accept Amex.

The drawback is an irritant especially if the extra reward points option had a play in the purchase decision.

Originally Posted by Animesh

Hence, I got an Amex Gold Charge Card now. The way I understand is that the program is definitely rewarding the first year. However, the Rs. 4500 annual fee is pretty steep to pay for a Credit Card. IMO, even with all the benefits, the card should be kept if annual credit card bill payment is more than 4 Lacs or more. Else, the rewards (minus the annual fee) don't justify the usage of this particular card.

In this day and age, I am not sure paying an annual renewal fees is really required. This is irrespective of the cumulative spending you do on a particular card. Just an FYI - Amex reduced the reward points accumulation recently (remember an email to this effect) to 2 points per Rs. 100 spent as compared to 2.5 earlier.

Originally Posted by rohan_iitr

Why would someone pay Rs 4500 as annual fee for a credit card ?

Nowadays, all credit card companies are offering lifetime free platinum credit cards to every Tom, Dick an Harry. Why pay annual fee then ?

Rohan

Exactly my point. Not worth it.

[Animesh]

Originally Posted by nkapoor777

In this day and age, I am not sure paying an annual renewal fees is really required. This is irrespective of the cumulative spending you do on a particular card. Just an FYI - Amex reduced the reward points accumulation recently (remember an email to this effect) to 2 points per Rs. 100 spent as compared to 2.5 earlier.

You would know the advantages of this particular card if your spending habits were closer to mine. Read
- Lots of air travel
- Lots of eating out

This definitely is the best card I have had.

And about the annual fees; remember everything comes at a price. Amex definitely has a far far superior customer service to go with their superior reward programs.

[Marlon]

Originally Posted by Oxy

How easy is it to redeem the Jet Airways JP Miles? I have recently heard horror stories stating they are pretty useless and you won't be able to book a flight using your JP Miles on any sector ever. Also heard that the features of the Citibank Jet Airways Platinum credit card have been downgraded to a huge extent.

Does it now make sense to convert your credit card reward points to JP Miles? Any suggestion on this would be really helpful.

I am using this card for last 2 years and absolutely love it. This is a must if your a frequent traveler in Jet Airways.

Benefits you get on a regular basis are
1. Lounge Access
2. Extra Baggage allowance
3. Priority Tagging

I have used the JP miles to book free tickets atleast a couple of times.

[Animesh]

Originally Posted by Oxy

How easy is it to redeem the Jet Airways JP Miles? I have recently heard horror stories stating they are pretty useless and you won't be able to book a flight using your JP Miles on any sector ever. Also heard that the features of the Citibank Jet Airways Platinum credit card have been downgraded to a huge extent.

Does it now make sense to convert your credit card reward points to JP Miles? Any suggestion on this would be really helpful.

I have had enough JP Miles to book ticket once, and it wasn't difficult at all. From what I understand of Air Miles is that one has to book a little in advance in order to book a ticket using Air Miles. I guess there are certain seats in every plane earmarked for Air Miles. And hence you can't see any tickets available when you are trying to use your JP Miles.

My horror story is that what can I possibly do with Kingfisher Miles. I have enough left for three round trips between Mumbai and Delhi.

[Devu]

Originally Posted by shankar.balan

There are no free lunches in this world my friend. or hadnt you realized this already?

Sorry for a slightly elaborate and long post but I thought I would share this rough "back-of-the-envelope" perspective with our friends here, some of whom may benefit from it.

<<snip>>

.

This post is a good way to understand credit cards. In the myraid jargon of conversions, the key is to remember the conversion of how much Rs 100 that you spend translates into rupees you get back.

Here is the equation

You spend rupees -> Translates to points -> Translates to reward rupees

The last part of the equation is the most significant and the most difficult to figure out because it is not straightforward and often hidden away in such a way that it is impossible to figure out.

Here is my own example to illustrate the point.

I have a Citibank Shoppers stop card which is a 'Golden glow card' after many years of having it.
Every 34 rupees = 1 point. So approx every 100 rupees = 3 points.
Now the interesting part, every point is not a rupee, instead its 70 paise

So for every 100 rupees of spending in shoppers stop I get 2.10 rupees which I call reward rupees for the sake of this post.

In percentage terms, its a cash back of 2.1%. This is the key.One has to try and figure out what percent of every 100 rupees you spend comes back to you as reward rupees.

To find this out is the key and this is the part that is not so trivial.

Why is figuring this out tough?

1. Because the calculation is not so well documented. The only way I can understand how a point translates to rupees is to call up shoppers stop. Its not their site, not on citibanks sites either.
2. In cases of other cards, points are redeemable for gifts. Here there exist some possibilites.
   • Points to be redeemed for gifts costing some points - This is the worst and most opaque rewards program. It relies totally on perception (Shankars point). We never can figure out the reward rupees number since the points can never be translated into rupees. Same with miles and every other benefit that cannot be denominated in rupee terms.
   • Points redeemed for gifts costing rupees - Better than the first option since now you will (after calling up the store or card issuer) be told how much each of your points is worth. Thus you can calculate your reward rupees number. The hidden catch is what Shankar pointed out. Is the gift advertised as being sold for Rs 1000, worth that much? But that's a different discussion especially if you can redeem the reward rupees by walking into the store, since then the world is paying as much as you are for that item and while they pay cash you pay nothing since you are using points.
3. Differential calculation. The same citibank shoppers stop card I use only accrues 1 point for every 100. That is 100 rupees = 1 point = 70 paise for all shopping outside shoppers stop (with some exceptions). Thus the reward rupees number is 0.7%.
4. The calculation starts becoming more complicated if you start factoring in renewal and annual fees if your card charges them.

So then, what is best? I go by these rules and they might not suit everyone. But here they are:

1. Steer clear of cards where the reward rupee number calculation is not possible or not known up front. Don't apply for such cards.
2. For others, calculate the numbers up front before applying. The reward rupee number is a range, in my case it would be 2.1% - 0.7. Then decide.
3. Review the calculations every time you are up for renewal. They would have changed almost everytime against you.
4. Have a single card for the entire family with add ons if possible. That way, everyone accumulates in a single bucket and rewards are better and faster.
5. Be aware of where your spend gets maximised i.e gives the most percentage rupee rewards and choose a card based on your spending pattern.
6. Always use a credit card. Pay your fuel, grocery, doctor, medicines and every thing else you can using it provided theres no surcharge or fee involved. Dont transact cash. That way, you earn points everytime.
7. Redeem ASAP and often at every possible ocassion. Points can lapse, the underlying calculation can change and most important the time value of money erodes your gain. 1 rupee today at current rates of inflation is 80 paise after a year.
8. Of course, pay your outstanding in full every month (on the last day of the month) using direct debit. But this point has nothing to do with the bang for your buck. That stays the same.

Which card do I recommend? Well its different strokes for different folks. But be sure to do your calculations up front.

Some cards are really bad and getting rewards is a hassle. But most good ones would give you in the range of 3% - 1.5%. Thats a good benchmark to have.

One can't help feeling that things get too complicated in the reward world. Is it worth all the effort to get into these calculations when it seems easier to just spend and take whatever you get? That's one valid way to look at it. But the other one is that given the amount of spends we make as a family these small percentages often can add up to a difference of many thousands of rupees per year depending on which card you choose.

The answer to whether that fact is important boils down to the kind of personality you are!

[shankar.balan]

Good set of points by devu. Be a transactor on your credit card and take all possible benefits from your bank. Dont ever rotate credit on the card.
Ref reward points burn or redemption for gifts, remember that probably the most useful thing available these days is free fuel if you can get it! Same with airline tickets if you get those!

[rkg]

I have redeemed 13920 points of my HDFC platinum plus card for Rs 4000/ Raymond gift vouchers

[lapis_lazuli]

Mine is a 7 year old card, with about 60000 points. I just redeemed for a BOSCH GSB500RE tool kit, worth 16000 points, a Morepen weighing scale for 6000 points and wondering what to do with the rest. It is like 8 points for a rupee. But most items on offer are GROSSLY marked-up. Now, dress coupons, footwear coupons etc. seem more VFM, especially during the year end sale period. Electronic items I feel are the worst deal. This is my opinion on the AXIS edge points. OT, but, there has never been "do-numberi" or "ghotala" with my AXIS card ever, touch-wood. I mean the tricks normally played by the banks, not where you have been careless or whatever.

[Oxy]

I just ordered these Bose speakers using my Amex reward points

http://www.americanexpress.com/india...g_station.html

[arnabchak]

I redeemed my SBI credit points for a Sheafer Pen!!

[Chetan_Rao]

My ICICI Coral card lets me convert reward points back to cash. I'll accumulate points the whole year, then redeem in one go and adjust against card balance.

[Aroy]

Recently I exchange my AMEX points for GIFT card - Rs.10000/24000 points

[rm_arjuna]

I use credit card for 85% of my monthly expenses and encash my rewards for fuel or shopping vouchers of lifestyle or shoppers stop and redeem them during sale period once a year .

[Ramon]

Originally Posted by arnabchak

I redeemed my SBI credit points for a Sheafer Pen!!

The best option on SBI credit cards is to redeem points as cash points. i.e. use ur Credit Card points to pay your credit card bill. Say you have 10000 points, equal to Rs.2500, and your card outstanding is Rs.4000, you can redeem your points and make the outstanding Rs.1500. Each point is worth 0.25 paise. You just have to send an e mail requesting the same. Sometimes reminders may be needed. There is no redemption charge for doing so.

You can also make purchases at department stores which will earn you up to 10 points per Rs.100 spent.

Another tip is use your SBI Group debit card to pay your credit card bill. This way you can earn points on the debit card too.

The points on SBI group debit cards can be used to get gift cards (similar to pre paid cards).

[Akshay1234]

Guys I have a fair amount of points on my Citi Rewards card (17000 if I'm not mistaken). I checked the Citi website, and the redemption options seem pretty bad. Even the brands to get vouchers for are nothing great. Any suggestions on another way to redeem them?

The Citi Prestige card on the other hand, has amazing options.