Credit Card Devaluation: These high-end cards scale back rewards and benefits! Are you affected?
Two major private sector banks Axis Bank and IDFC FIRST Bank have announced devaluation across some of their popular credit cards. Axis Bank is set to revise features and benefits on some of its premium cards starting April 20, while IDFC FIRST Bank will implement similar changes on most of its cards from May 1, 2024.
Earlier, another major bank, HDFC Bank, tweaked the process and policies pertaining to the features and benefits of its popular card Regalia.
First, you should know what exactly credit card devaluation is. It means that the benefits like cashback, reward points, or travel perks previously offered on your credit card by your issuer bank will no longer be available, either partially or fully. Though you will now receive fewer benefits compared to what was promised at the time of the issuance of your card, you still have to pay the same annual fee and interest rates, as per the card’s policy. So, in short, you get less value for the money you spend using your credit card due to devaluation.
Also Read: Credit Card Points: 5 best ways to make every reward count
In the case of Axis Bank, the affected cards include Axis Magnus, Axis Atlas, IndianOil Axis, Axis Ace, Flipkart Axis Card, Axis Vistara Infinite, and Axis Privilege.
Some of the key changes in the perks and benefits associated with the cards are – access to domestic lounges being linked to your spending, new rules added to the rewards program that might exclude certain purchases, services like concierge and meet and greet being taken away, and the basic rates being lowered on entry-level cards.
The bank has introduced some changes to the list of airline and hotel partners, which used to be a big selling point for premium and travel cards. The number of
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