Do you really need a credit card advisor? Here’s when the fee may be worth it

Choosing the right credit card now involves managing portfolios and making strategic decisions on spending categories. (Pixabay)SummaryCredit card advisors promise to maximize rewards, but fees can range from ₹399 to ₹1.5 lakh. When does the extra value justify the cost—and when are you better off doing it yourself?Gift this articleCheck your portfolioThis is a Mint Premium article gifted to you.Subscribe to enjoy similar stories.

Getting the right credit card used to mean comparing annual fees, reward rates and perhaps lounge access. For a growing number of cardholders, it now involves something closer to portfolio management.

Which cards should you hold? Which one should pay for groceries, insurance, utilities or a large purchase? Should reward points be converted into airline miles or hotel points, or simply pay the credit card bill? When a card gets devalued, what should replace it? And when it is finally time to travel, which redemption gives the highest value?

A growing number of platforms and independent consultants now provide advice on these questions for a fee. Services vary considerably in scope and price. The Points Code, CardExpert, Ajay Awtaney, a credit card expert and founder of LiveFromALounge and 1A, among others, offer personalized advice on building and managing credit-card portfolios and maximizing rewards. Online platform SaveSage combines an app-based product with access to human experts, while FLIP app primarily uses technology to tell users which card from their existing portfolio is best for a particular transaction.

At the entry level, most platforms offer a one-time credit-card portfolio review or advice on which cards to use or add based on a customer’s spending pattern. Some also provide basic redemption guidance.

1A’s entry-level plan costs ₹999 and includes a one-time portfolio review over email. SaveSage charges ₹399 annually for its basic tech-led advisory plan, while access to human advisors costs ₹1,699 for one year. FLIP and Qubera offer basic advice for free through AI chat tools, with disclaimers that AI-generated recommendations may not always be accurate and should be cross-checked.

Personalized consultations can cost substantially more, typically ₹10,000-20,000, and are generally aimed at cardholders spending upwards of ₹20 lakh annually. The Points Code and 1A, for instance, charge about ₹10,000 for a portfolio-building and rewards-maximization strategy. The Points Code also offers a one-time redemption service for about ₹7,000, where customers are advised on how to best redeem their points.

Rohan Varshnei, co-founder of The Points Code, said one-time advice is typically more suitable for cardholders spending ₹20-40 lakh a year than an ongoing advisory programme.

“For cardholders spending around ₹20-25 lakh annually, rewards may be worth roughly ₹50,000 to ₹1 lakh, depending on the cards and spending pattern. At this level, paying about ₹7,000-10,000 for one-time assistance will make sense, instead of paying a higher fee for ongoing card portfolio management," said Varshnei.

All programmes beyond these basic plans resemble wealth-management advisory, with periodic portfolio reviews, redemption planning and access to an advisor when the cardholder has a large purchase or travel plan. These services are mainly aimed at high net-worth individuals (HNIs) spending over ₹40 lakh annually through credit cards on discretionary spends.

The Points Code’s ongoing portfolio-management service costs 1% of annual card spends, capped at ₹1.5 lakh. 1A’s comparable plan costs ₹29,999 a year and includes six portfolio or redemption review calls, while CardExpert’s advanced advisory service for high spenders costs about ₹50,000. SaveSage’s highest-tier package costs about ₹15,000 for similar ongoing support.

Gajender Yadav, founder of 1A, said higher eligible spending generally creates more opportunities to earn points, but the value ultimately realised depends on the right strategy and redemption. “The net reward rate one can earn ranges from 5%-50% depending on how the rewards are redeemed. Extracting maximum value requires time and effort in researching cards, comparing reward structures, tracking programme changes and planning redemption,” said Yadav.

Whether you need an advisor mainly depends on your discretionary spending, the complexity of your card portfolio and the time you are willing to devote to managing it.

Someone spending ₹5-10 lakh annually, using one or two cards and primarily looking for cashback may have little need for paid advice. There may not be enough incremental reward available to recover a large advisory fee.

As spending increases, managing multiple cards becomes more complex. Cardholders need to track milestone benefits, monthly reward caps, conditions for annual-fee waivers, reward-transfer partners and airline and hotel loyalty programmes.