Why should you opt for a credit card based on its offerings when they are subject to change? | Mint

Imagine you secure a credit card based on certain features and offering and after a few weeks or months, the bank rolls out changes, which effectively discontinue some of those offerings.

Would you feel bad or for lack of better word – cheated? Well, first of all, introducing changes in the credit card rules is not something unusual.

For example, HDFC Bank rolled out changes which became effective from July 1 onwards. As per the new rules, credit cardholder will not be entitled to receive any reward points for transactions done on online skill-based gaming platforms. These platforms include Dream11, Rummy Culture, Junglee Games, MPL, etc. Read this Livemint article for more details.

Last month, HDFC Bank’s Tata Neu credit card revised its rules with regards to lounge access. You can read here about this.

Likewise, a NPCI introduced several changes last year in September with regards to RuPay cards. Following those changes, RuPay credit cards became eligible for the same reward points for UPI transactions as other payment service providers. The change was done to address the previous disadvantage RuPay cardholders encountered as they earned rewards.

During the same time, IDFC First Bank rolled out a change with regards to credit card billing cycle by shortening the time duration from 18 to 15 days. Apart from this, the minimum amount due (MAD) ratio was brought down from 5 per cent to 2 percent of the principal amount.

How deep are the changes?

As one can assess from the changes mentioned above, the changes in the credit card rules are typically either minor tweaks, fresh updates or revisions in time limits or thresholds. These relate to the reward points, lounge access, time duration and so on. They do not fundamentally change the character or spirit of the card.

For instance, a premium card does not get downgraded to a regular card because of changes, or a travel card does not switch to a shopping card in response to the changes.

What should card holders do?

The cardholders, one would expect, do not have any choice with regards to these changes introduced by the bank. Meanwhile, it is imperative to stay updated with regards to credit card rules. Banks generally send communication on the customers’ email accounts linked to the bank. So, it is important for the card holders to stay abreast with these changes by keeping track of all communications sent by the bank.

Additionally, the changes are typically either cosmetic or superficial and do not fundamentally alter the card’s character. Therefore, the purpose for which you secured the card will continue to be met, failing which you could re-consider keeping the card active.

Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.

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