Is your favorite credit card still worth it in 2026?
If you checked your credit card statement this January, you might have felt a bit of “reward-point heartbreak.” As of January 10, 2026, the Indian credit card landscape has undergone its most significant shift in years. Major players like HDFC, SBI Card, and ICICI have tightened their belts, making it harder for the average user to enjoy the perks we once took for granted.
But don’t cut up your cards just yet. Here is how you can navigate these changes and keep your wallet heavy with savings.
1. The Death of the “Easy” Lounge Visit
The biggest shock of 2026 is the end of the “simple swipe” at airport lounges.
- HDFC Bank’s Digital Barrier: Swiping your physical HDFC Debit or Credit card at the lounge counter is officially a thing of the past. You now need to hit a ₹10,000 quarterly spend to even receive a digital voucher via SMS. No voucher? No entry.
- SBI Card’s New Tier System: SBI has split its lounge program into Set A and Set B. If you hold a mid-tier card, you might find yourself restricted from the premium “080” or “Encalm” lounges in metros like Bengaluru or Delhi.
The Survival Tip: Before you head to the airport, check your bank’s app. For HDFC users, “claim” your voucher at least 48 hours in advance. If your card has been devalued, consider a lifetime-free alternative like the MagniFi Card, which still offers straightforward lounge access without high spend hurdles.
2. ICICI’s New Fee Reality: Gaming and Wallets
ICICI Bank has led the 2026 charge in new transaction fees. If you use your credit card to load money into wallets (Amazon Pay, Paytm) or for online gaming (Dream11, MPL), you are now being hit with a 1% to 2% surcharge.
Furthermore, the legendary BookMyShow BOGO (Buy One Get One) offer on many ICICI cards now requires a minimum spend of ₹25,000 in the previous quarter.
The Survival Tip: Switch your utility and wallet-loading spends to a RuPay Credit Card linked to UPI. Many RuPay cards still offer base rewards on these categories without the heavy surcharges seen on Visa/Mastercard variants.
3. The “Capping” of Accelerated Rewards
“Unlimited 5%” is becoming a myth. In the 2026 updates, almost all banks have placed a monthly cap on how many reward points you can earn on specific categories like insurance, groceries, and utilities.
- Insurance: Most cards now cap insurance rewards at ₹10,000 – ₹40,000 worth of spends per month.
- Rent: If you’re still paying rent via credit card, the processing fees (now averaging 1% + GST) likely outweigh the rewards you earn.
4. How to Build a “Devaluation-Proof” Portfolio
To maximize your money in 2026, you need to diversify. Don’t rely on one “all-rounder” card. Instead, use a 3-Card Strategy:
| Card Type | Recommendation | Why? |
| The Online King | SBI Cashback Card | Still offers 5% flat cashback on most online spends with a high monthly cap. |
| The UPI Specialist | Tata Neu Infinity (RuPay) | Earns 1.5% back on every UPI scan—perfect for small daily shop visits. |
| The Lifestyle Backup | IDFC Mayura | A premium metal card with Zero Forex Markup and reliable lounge access. |
The Verdict
The era of “free lunch” in the Indian credit card market is ending. Banks are now rewarding loyal, high-spending users while cutting perks for “free riders.”
To stay ahead, review your statement every quarter, track your “spend milestones” on your bank’s app, and never be afraid to close a card that no longer provides value. Your wallet should work for you, not the other way around.
