If you have been hoarding your credit card reward points for a year-end vacation or a big festive purchase, you need to act fast. A wave of "silent" devaluations is hitting the Indian credit card market, with major issuers implementing significant changes that could wipe out the value of your accumulated points starting as early as next week, December 1, 2025.

Banks are tightening their belts, and your rewards portfolio is the first casualty. Here is a breakdown of what’s changing and the immediate steps you must take to protect your financial benefits.

The Big Changes Coming in December 2025

The Lounge Access Guillotine: The days of unconditional free airport lounge access are ending. Banks like Axis Bank and HDFC Bank are moving to a "spend-based" model. For instance, on popular mid-range cards, you may now need to spend a minimum of ₹35,000 to ₹50,000 in the previous calendar quarter just to unlock lounge access for the current one. If you haven't met this spend threshold in the last three months, your "free" visit next week could cost you upwards of ₹2,000 at the lounge desk.

Reward Point Value Erosion: This is the most insidious change. Banks are quietly reducing the monetary value of each reward point upon redemption.

Example: On some premium travel cards, 1 Reward Point (RP) that was previously worth ₹0.50 for flight bookings might now be worth only ₹0.30. This effectively slashes the value of your point balance by 40% overnight.

Exclusion of Categories: Big-ticket spending categories that helped you rack up points fast are being excluded. Payments for Rent, Utilities (electricity, water), Insurance premiums, and Government services will no longer earn reward points on many popular cards. If you relied on paying your landlord via credit card to hit milestone bonuses, that strategy is officially dead.

Points Expiry Acceleration: Banks are shortening the validity period of unused points. Points that were previously valid for 2-3 years might now expire in as little as 12 months.

The Fix: Your 3-Step Action Plan Before December 1st

Don't let your points vanish into thin air. Here is what you need to do today:

Step 1: Audit Your Balance Immediately. Log in to your net banking or credit card app right now. Check your total reward point balance and, crucially, look for any "points expiring soon" notifications.

Step 2: Redeem for "Liquid" Options. Forget saving for a dream product in the rewards catalogue, which are often overpriced anyway. The best value right now is in "liquid" redemptions:

Statement Credit (Cashback): Use points to pay off your current outstanding bill. The conversion rate might be lower, but it’s instant cash savings.

Gift Vouchers: Redeem for Amazon, Flipkart, or other versatile vouchers that you know you will use. Do this before the conversion rates become less favourable.

Airline/Hotel Transfer: If you have a premium travel card, transfer your points to an airline or hotel partner program (like InterMiles, Club Vistara, or Marriott Bonvoy) before the transfer ratio is devalued. Once transferred, the points are subject to the partner program's expiry rules, buying you more time.

Step 3: Re-evaluate Your Card Strategy for 2026. The card that was best for you in 2024 might be useless in 2026. If your card’s annual fee is due, call customer care and ask for a retention offer or a fee waiver. If the new rules make the card unviable, consider downgrading to a lifetime-free card or switching to a different issuer with a more stable rewards program.

The golden age of easy credit card rewards is fading. Stay ahead of the banks by redeeming your points now and adjusting your spending strategy for the new reality.