In the last few years, some banks have stopped giving any credit card reward points or cashback on utility bill payments. Some banks have even started charging a convenience fee on utility bill payments through credit cards if the amount exceeds a specified limit. However, HDFC Bank and PhonePe have partnered to launch the PhonePe Ultimo Credit Card, which gives a 10% reward rate on utility bill payments.
In this article, we will understand the features and benefits of the PhonePe HDFC Bank Ultimo Credit Card, the reward rate, fees, and whether you should take this card.
Reward structure
The PhonePe HDFC Bank Ultimo Credit Card reward structure is as follows:
- 10% reward points on select PhonePe categories like recharges, bill payments, travel, and PINCODE. The travel bookings can include flights, buses, trains, hotels, etc. The maximum reward points that can be earned in a calendar month are capped at 1,000 reward points.
- 5% reward points on select online brands like Amazon, Flipkart, Myntra, Ajio, Swiggy, Zomato, Uber, etc. The maximum reward points that can be earned in a calendar month are capped at 500 reward points.
- 1% reward points on all scan and pay spends. The rewards apply to payments made through any UPI App, not just the PhonePe App. The maximum reward points that can be earned in a calendar month are capped at 500 reward points.
Exclusions
The following categories/transactions will not earn any reward points:
- Fuel transactions
- Wallet loading
- Gift card purchases
- Credit card bill payments
- Government payments
- Rental transactions
- Education fees
- Insurance premiums
- Investments
- Jewellery purchases
- EMI transactions
Airport lounge access
The PhonePe HDFC Bank Ultimo Credit Card provides 8 complimentary domestic airport lounge accesses. The cardholder can enjoy two complimentary lounge accesses per calendar quarter. A calendar quarter is defined as follows: 1st January to 31st March, 1st April to 30th June, 1st July to 30th September, and 1st October to 31st December.
A cardholder must spend Rs. 75,000 in the previous calendar quarter to unlock complimentary airport lounge access in the subsequent calendar quarter.
Fuel surcharge waiver
The card provides a 1% fuel surcharge waiver on all fuel transactions. The waiver applies to fuel transactions between Rs. 400 to Rs. 5,000. The maximum waiver that can be availed is capped at Rs. 250 per statement cycle.
Reward points redemption
There are various ways in which the cardholder can redeem the reward points:
- Cashback: A cardholder can redeem the reward points as cashback against the outstanding credit balance. The value of one reward point is equal to Rs. 1. The minimum reward points balance required for redemption against statement balance is 500 reward points. A cardholder can redeem a maximum of 7,500 reward points for a Rs. 7,500 cashback per month.
- Other redemption options: A cardholder can redeem their reward points on the HDFC SmartBuy portal for booking flights or hotels. They can also transfer the reward points to airline and hotel loyalty partners. The value of each reward point is equal to Rs. 0.30.
Reward points are valid for 1 year from the date of accumulation. Any unredeemed reward points will expire after 1 year of accumulation.
Fees
The joining fee for the PhonePe HDFC Bank Ultimo Credit Card is Rs. 999 + Taxes. The cardholder will get the following welcome benefits worth Rs. 999.
- A Rs. 499 PhonePe Gift Card on doing the first RuPay credit card on a UPI transaction on the PhonePe App.
- A Rs. 50 PhonePe Gift Card for each of the 10 subsequent RuPay credit cards on UPI transactions.
The cardholder has to do a transaction of a minimum of Rs. 100 to be eligible for the welcome benefits.The annual renewal fee for the card is Rs. 999 + Taxes. The annual renewal fee is waived on spending Rs. 2,00,000 in the previous year.
Maximising the card benefits
The cardholder can plan their spends across various categories to maximise the card benefits as follows:
| Category | Reward rate | Calendar month reward points capping | Calendar month spends to earn maximum reward points |
|---|---|---|---|
| Select PhonePe categories | 10% | 1,000 | Rs. 10,000 |
| Select online brands | 5% | 500 | Rs. 10,000 |
| Scan and pay | 1% | 500 | Rs. 50,000 |
As the above table shows, a cardholder will exhaust the monthly limit of 1,000 reward points on select PhonePe categories by spending Rs. 10,000 in a calendar month. Similarly, the cardholder will exhaust the monthly limit of 500 reward points on select online brands by spending Rs. 10,000 in a calendar month.
How to apply for the card?
An individual can apply for the PhonePe HDFC Bank Ultimo Credit Card through the PhonePe App only. There is no offline or website-based application process for this card. The card cannot be applied for through HDFC Bank as it is exclusively available for application through the PhonePe App.
Should you take the card?
As mentioned earlier, some banks don’t give rewards on utility bill payments. Some banks even charge a convenience fee on utility bill payments if the amount exceeds a specified amount. In such a scenario, the PhonePe HDFC Bank Ultimo Credit Card offers a 10% reward rate on utility bill payments through the PhonePe App.
Along with utility bill payments, the card offers a 10% reward rate on travel bookings through the PhonePe App. The card offers a 5% reward rate on select online brands. These brands cater to food, travel, fashion, and several other requirements of an individual. The card also offers a 1% reward rate on UPI payments.
Apart from the above benefits, the card offers good welcome benefits and complimentary domestic airport lounge access. Overall, the PhonePe HDFC Bank Ultimo Credit Card is a good entry-level credit card with an up to 10% reward rate, airport lounge access, and a reasonable fee. Individuals using the PhonePe App regularly may consider this credit card specifically for utility bill payments, travel bookings, and airport lounge access.
Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached on LinkedIn.
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