HDFC is recently known for their series of devaluations since past 2 years and its surprising to see even further devaluations on their premium cards now inspite of the fact that their competitors are becoming more rewarding. Now HDFC has come up with lots of changes to many cards including Diners cards. The changes are so big that HDFC even sent an SMS to everyone (which they never do). Here you go,
Changes to HDFC Regalia Credit Card:
As per their website: Effective 15th August’2017,
- Value of Each Reward Point is worth Re 0.50 when redeemed on hdfcbankregalia Website
- 2X Rewards points will not be applicable on Dining (standalone restaurants), flight bookings on Vistara & hdfcbankregalia Website.
- Reward points will be redeemable against only Airline Ticket booking and Hotel booking on hdfcbankregalia
- New Reward Rate: 1.3%
HDFC Regalia’s reward rate has gone down from 2% to 1.5% to finally 1.3% now. 2X points on dining has been very useful for many for years which is now going away.
Also, remember, you can no longer use your points for recharges. Yes, You’re limited to Flights/hotels – which means, only Flights because Hotel rates in regalia site are very high. I know this is already coming because recharges has tiny margins.
Changes to HDFC Regalia First Credit Card:
- New Point Value: 1RP = .30 INR
- New Reward Rate: 0.8%
Changes to HDFC Moneyback Credit Card:
- New Point Value: 1RP = .20 INR
- New Reward Rate: 0.2% (Seriously?!)
For god sake, get rid of this moneyback credit card ASAP if you’ve one.
Changes to HDFC Diners Credit Cards:
- 2X Reward Points while you shop on hdfcbankdinersclub Website, 2X on Dining, Grocery, Supermarket, Air will be withdrawn w.e.f 15th August 2017.
- The capping of reward points is only on the accelerated 10X program and not on any other spends which follows the Regular reward points (not clear)
- 1 Reward Point = 0.30 AirMile/value w.e.f 15th August 2017
- Complimentary lounge access will be withdrawn (yes, no more unlimited lounge access)
- New Reward Rate: 0.6%
Hence you no longer need to hold this card!
- 1 Reward Point = 0.50 AirMile/value w.e.f 15th August 2017
- Complimentary Golf lessons will be withdrawn w.e.f 15th August 2017
- 6 Complimentary accesses to Domestic/International Lounges under the program in a calendar year w.e .f 15 th August 2017. (yes, no more unlimited lounge access)
- New Reward Rate: 1.3%
Now its in par with Regalia. I mean, both are almost useless unless they continue 5x/10x rewards for longer duration!
- 1 Reward Point = Rs. 1 AirMile/value (no major changes for now)
- 6 Complimentary Golf games per quarter w.e.f 15th August 2017
- Complimentary Golf lessons will be withdrawn w.e.f 15th August 2017 (Did anyone actually used it? )
Good news, Diners Black & Infinia is untouched on reward rate. Looks like they’re not devaluing their super premium cards as they’re earning good money through other relationship value of their HNI customers. However, not to be happy, the storm ‘may’ come. Its just a matter of time.
The Party is Over!
I know they’re going to devalue Diners bigtime but didn’t expect this BIG. The reason is because almost everyone is now holding Diners cards (unlimited lounge access?!) and the Diners acceptance has increased much past 2 years, so it has become yet another normal card. Common sense!
I still remember people swiping their Diners Rewards in Domestic Lounges and now they can no longer do so. The features we enjoyed so far is part of Diners-HDFC marketing budget which doesn’t seem to exit anymore, or maybe reduced a lot.
Stop Hoarding points:
We all know that the 2x/5x/10x offers are all tempting. But now stop buying things you don’t need – just to accrue the points. After all, its just a marketing Gimmick. As i used to say often, if you can’t redeem points within 3-6 months, don’t keep adding them. HDFC is brilliant – They give premium cards for free, give 2X/5x/10x offers and finally devalue points them bigtime.
This devaluation is a good lesson that Reward points are not a good long term investment.
So what to do?
Redeem your Points: If you’re holding the cards that are being heavily devalued, its better to redeem your points ASAP. Remember that the points you currently have also will have low value after Aug 15th. The best way to redeem points is by spending on flight tickets or wherever you can on Regalia website. Transferring to Airmiles is also one of the easiest way around as well.
Pick a New Card: Post the devaluation, HDFC’s premium cards are in no match to SBI Elite or even SBI Prime. If you had been thinking to pick HDFC or SBI in the past, now you got good reasons to move to SBI cards. Even Yes First Preferred seems better now. This is a great news for competitor’s to make use of the opportunity. If you still need options, check out the updated list of best credit cards in India.
Remember, when it comes to reward points, or choosing the right credit card, its never get it and forget it type. The ecosystem is evolving and change is the only constant we could expect. Like us on Facebook, follow me on Twitter or just sign up to email newsletter using the pop up box, or simply comment below to get into the email list to stay updated of any upcoming changes to the world of credit cards. Redeem your points soon & stay tuned!
What’s your take on HDFC’s biggest devaluation of the year which had now affected a vast majority of people? And what are you planning to do Now?