Credit card changes from April 1: Why are lenders adjusting benefits and what should consumers do

Credit cards typically undergo several changes throughout their lifecycle, encompassing modifications in rewards programs, promotional offers, annual fees, and eligibility criteria.

Echoing similar sentiments, Adhil Shetty, CEO of BankBazaar, stressed the broader challenges faced by credit card firms and their partners in maintaining sustainable operations.

He explained that these challenges range from meeting customer demands amidst inflation to tough competition and the need to improve margins.

He highlighted the necessity for credit card firms to reassess their rewards programs and adapt to evolving market dynamics.

"Banks are further differentiating their offerings to stay relevant and adjusting benefits to align with their target customer base," he told CNBC-TV18.com.

He mentioned that while customers may witness changes or reductions in rewards in the short term, these adjustments aim at long-term sustainability.

Chhibbar emphasised the importance of evaluating the impact of any major devaluation on personal finances.

"If the card has undergone a major devaluation and now falls below the expectations, the only real choice, as a consumer, is to look at other alternative credit cards, either from the existing ones or a new one. While doing this, consumers should ensure that the alternative option also suits their spending habits and is significantly better than the devalued card in terms of the overall value it provides," he told CNBC-TV18.com.

He further suggested users compare available options based on individual spending habits and the overall value provided.

Effective April 1, 2024, SBI Card will cease the accrual of reward points on rent payments for select cards, including AURUM, SBI Card Elite, and SimplyCLICK SBI Card.

On the other hand, ICICI Bank will increase the minimum spend required for complimentary airport lounge access to ₹35,000 in the preceding calendar quarter for several credit cards, including the Coral Credit Card and MakeMyTrip ICICI Bank Platinum Credit Card.

Effective April 1, 2024, YES Bank will mandate a minimum expenditure of ₹10,000 in the ongoing quarter to qualify for domestic lounge access benefits across all its credit cards.

Axis Bank, meanwhile, will make revisions to the Magnus Credit Card from April 20.