The new financial year begins from April 1. With this, multiple banks may bring important changes to their credit card policies. These changes could impact reward points, fees, interest rates, and various spending benefits. Therefore, cardholders are advised to carefully review the revised terms and conditions.
Changes in reward point structure: Banks may alter the rules for earning and redeeming reward points. Rewards may decrease for categories like rent payments, wallet loads, and utility bills. Monthly reward points may be capped. The value of points during redemption may also change. Those who rely on reward points for travel or cashback could be directly affected.
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Higher fees on specific transactions: Some banks may introduce new fees on certain transactions or increase existing fees. Changes may come to rent payments via credit card, EMI conversions, late bill payments, and fuel surcharge benefits. These changes aim to reduce high-risk or less profitable transactions.
Changes in minimum due calculation rules: There may also be changes in how minimum due is calculated. A higher minimum amount may need to be deposited compared to before. Interest calculations for partial payments may be shown more clearly. The purpose is to encourage responsible debt usage and reduce long-term debt burden.
New conditions for airport lounge access: Free airport lounge facilities may now be linked to specific spending conditions. A certain amount may need to be spent each quarter. This benefit may only be available on specific card variants. Free lounge access may be discontinued if the specified spending limit is not met.
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Revisions in interest rates and penalties: Annual percentage rate (APR) and penalty amounts may also be revised. Interest rates may be determined based on customer credit behavior, risk profile, and market conditions. Higher interest may have to be paid for irregular bill payments or low credit scores.
What cardholders should do
Check official messages from your bank. Read the new terms and conditions carefully. Plan your spending in a way that maintains benefits. Don't let unnecessary dues accumulate. It's important to understand these changes before April 1. This will help avoid unexpected charges or the risk of losing benefits.
