Should you hire a credit card consultant to earn and manage reward points?

When used correctly, credit cards can earn you anywhere from 3-30% return on your spending. So, there is enough value in the right advisory, says Rohan Varshnei, co-founder of The Points Code, a credit card rewards consultancy platform. 

“I used to help out friends and family with optimising rewards on credit cards and planning their travels. It got me thinking, there is enough demand, so why not provide the service to those who need it in exchange for a fee,” said Varshnei, who started The Points Code with two other partners, Tejas Ghongadi and Jitu Hemlani, in early 2023.\

Like Varshnei, a set of credit card enthusiasts who have developed expertise in rewards, air miles and hotel loyalty points have turned into full-time consultants to help people maximize the value of credit card spends. 

Ajay Awtaney, founder and editor of LiveFromALounge.com, one of the early movers in the credit cards space, regularly conducts masterclasses on credit cards that last six to seven hours. “These are for people who know nothing about the world of credit cards and loyalty programmes. These classes address how the cards are linked to the different programmes and used efficiently for travel,” he said.

Different types of advise

Credit card advisory is mainly available in two forms: one-time consultations for specific queries and annual enrollment for holistic advisory.

In the first model, customers can expect a one- to two-hour-long video consultation or a detailed email interaction that costs ₹2,000 to ₹8,000, depending on the range of topics covered.

Siddharth Raman, founder of CardExpert, offers a beginner consultation service for ₹2,999. “Some cardholders have specific queries as per their spending patterns. For example, someone has high foreign currency spending or high insurance spending. Or say, someone is about to purchase a car using credit cards. They want quick information on the cards that can maximize rewards on these specific expenses,” he said. “People can email me up to three queries, and I send back one detailed response and one follow-up email if needed.”

Other specific cases on which people can get advice include detailed enquiries on select cards, information on ongoing key offers and credit card portfolio rejigging, among other things. Such expert advice can especially come in handy when a cardholder gets in a conflict with the bank and wants to know the right way to take up the matter with the bank or the banking ombudsman.  

Awtaney said he got the most requests for one-time sessions in 2023 when the Axis Magnus card was transitioning into its current form. “People wanted to know what they should do with the accumulated points, whether they should continue using it or not, and which card would replace Magnus, etc. These ad-hoc sessions are useful for people keen on getting timely information on the cards they already use,” he said. 

“A lot of times, I’m simply approached by cardholders with 10 or more cards wanting advice on how they can declutter.” Awtaney charges ₹5,000 for an hour-long teleconsultation. 

Advise on how to build a credit card portfolio from scratch and how to redeem the accumulated reward points cost higher. 

For instance, The Points Code provides a one-time consultation on building a credit card portfolio and introduction to hotel and airline programmes to beginners for a ₹7,999 fee. “We analyse the spends and credit cards already being used, if any. Based on this, we list cards they can get for maximum rewards. Also, we break down how they can maximise the different cards on day-to-day spends,” Varshnei explained. 

While the customer is given a list of cards, they have to apply themselves. The KYC norms don’t allow a third party to apply on the primary applicant’s behalf. However, they can reach out to Varshnei and his team if they face a glitch in the process. “A lot of times, we also connect our clients to our network of relationship managers who can escalate the application process,” he said.  

One-time redemption services cost ₹6,999 on The Points Code. Both Awtaney and Raman provide redemption services as part of their annual package. 

End-to-end services for HNIs

Under the holistic advisory model, cardholders are enrolled annually, and the expert manages the card portfolio completely. This is akin to wealth management but for credit cards.

From creating a portfolio of cards best suited to spending patterns to planning efficient point redemption, the advisor is fully in charge of extracting the best value for the customers enrolled. In between, the card portfolio is reviewed regularly, timely intervention is given when a bank devalues a card, and regular updates on ongoing offers are provided. 

“When someone enrols for a year, I work with them in perpetuity to guide them on which cards they should focus on a day-to-day basis and keep course correcting on an ongoing basis. A big part of the job is also to ensure that they don’t break bank’s terms in a bid to maximize rewards as it can have severe consequences,” said Awtaney.

This model is meant for those looking for travel-focused rewards on their spends. The card consultants are often well-travelled themselves and are able to give the right advice based on their own experiences. 

Varshnei said they assist their clients in planning and booking annual vacations or business-trip using rewards.

Currently, these kinds of end-to-end services are typically available only for high-net-worth individuals (HNIs) and ultra HNIs due to the premium fee structure. 

For instance, Varshnei charges 1% of the total annual spends done with credit cards, capped at ₹1 lakh annually. Awtaney said he doesn’t have a fixed fee structure and the amount is agreed upon on a case to case basis but he refused to reveal the amount. 

Raman charges ₹19,999 for the annual consultation services, catering exclusively to clients with annual spends exceeding ₹50 lakh. “Significant returns are achievable only at high spend levels. At this threshold, cardholders not only recover the fee but also earn 20 times its value easily,” Raman said, explaining the reason for having a minimum spend requirement for the annual plan. 

“When someone with moderate spends of ₹15-20 lakh reaches out, I prefer to give them a one-time consultation on a case-to-case basis.”

When it is not required

Like wealth advisory, not everyone may need paid consulting for credit cards just because it is available. 

First, people who use credit cards for cashback may not need advice at all, as the reward system on these cards is quite straightforward.  

Even high-spenders who are enthusiastic to carry out their own research to pick a card and hunt good redemptions by staying up-to-date should take the DIY approach. 

“What we do is not rocket science. If someone dedicates four to five hours every day reading on credit cards, they can have the same information that we have. But, most people don’t have that kind of time, and that’s where we can help. This is the reason we target HNIs and UHNIs,” said Varshnei. 

For those looking at economical options, there are two mobile applications called SaveSage and Cherry Pick that can be used to track rewards and maximize them in an automated way. However, both these apps are in their nascent stage and have limited features. 

SaveSage, launched two months ago, lets users track their spends, see all the features of the cards they own and gives redemption options on the rewards accumulated. While these three features are available for free, advanced features like recommendations on which cards to get and where to transfer rewards for maximum value are available under paid packages. The app also offers one-on-one consultation to credit card experts. 

“We offer two main annual packages–the first costs ₹999, which unlocks additional features and two consultations, and the second comes for ₹4,999 fee, which gives full access to the app and also unlimited consultation,” said Ashish Lath, founder and chief executive of SaveSage.