Navigating Declining Credit Card Benefits: Strategies to Maximize Rewards
As credit card benefits decline, leverage offers to earn more rewards
Business Standard
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Credit card benefits in India are declining, prompting users to reassess their spending habits and card choices. Experts recommend leveraging multiple cards to optimize rewards based on spending categories, as issuers tighten perks and introduce new conditions for benefits.
- 01Credit card benefits in India are being reduced, particularly for mid-to-premium cards.
- 02Issuers are linking rewards more closely to meaningful spending and usage patterns.
- 03Users should reassess their credit card choices to ensure they align with their spending habits.
- 04Upgrading to premium cards may offer better perks for high spenders, but comes with higher fees.
- 05Regularly reviewing card benefits and spending patterns is essential to maximize rewards.
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Credit card benefits in India are experiencing significant cuts, particularly for mid-to-premium cards, as banks reduce cashbacks and tighten perks. Harsh Vira, a financial planner, notes that these changes have accelerated since 2023, with issuers moving from minor adjustments to a structured reset in 2026. This reset links rewards more closely to meaningful spending, requiring users to actively manage their credit card usage to extract value. Premium cards, which historically offered generous benefits, are now seeing the sharpest reductions in travel perks and lounge access, while mid-tier cards face tighter cashback caps and exclusions. Experts suggest that users should reassess their spending mix and consider using multiple cards to maximize rewards. For high spenders, upgrading to premium cards may provide better perks, but these cards come with high fees and strict eligibility criteria. Regular reviews of card benefits and spending habits are crucial to ensure that users are getting the most value from their credit cards.
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The decline in credit card benefits means consumers may need to change their spending habits and card usage to maintain value, potentially leading to higher costs if they do not adapt.
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