Credit cards can be more than just a spending tool. Once people are accustomed to normal usage of credit cards as a beginner, they gradually start looking for greater benefits and explore ways to squeeze more value out of credit cards. Going beyond basic credit card features they experience additional benefits offered under premium credit cards or sometimes in co-branded credit cards.

Having a credit card which also matches your lifestyle needs or a card that offers benefits related to the brand to which you are attached can significantly enhance your experience. However, what should you do if your credit card company withdraws or changes some of its features? Here are some of the steps you can take.

Compare Features

It’s always better to wait for the official confirmation from the card company to know about the changes announced by them than to act hastily on rumours. After receiving the official communication, you must note down all the changes in one place. You can compare the changes with the original features offered by the card company.

For example, suppose the feature of your card at the time of joining was 10 reward points for Rs 200 spent, 5X reward on flight booking, reward to Airmiles conversion at 5:4 ratio, but after revision, it would be 8 reward points on Rs 200 spent, 3X reward points on flight booking and reward to Airmiles conversion at 5:2 ratio. The real question that you should be really concerned about is how such changes would impact you.

Adhil Shetty, CEO, Bankbazaar.com, says, “Adopting new changes in credit card features can help you make the most of your credit card and ensure that it aligns with your financial needs and goals.”

Also Read: Savings declining? Here is how to boost your household savings

Assess the Change

To assess the impact of feature change, analyse the change in benefits in monetary terms. For example, you can compare the change in reward point earning, reward-to-mile conversion, change in charges, all such changes in terms of monetary value. A monetary evaluation will provide an estimate based on which you can know how much you are going to lose due to changes in the card features.

Shetty adds, “Keep a close eye on your credit card statements to ensure that the changes are implemented correctly and that you understand how they affect your finances.”

Change the credit card?

If the card has lost one or more of its most important features for which you had taken that card, you may think of exiting it. Before existing, you must compare its new feature with other cards available in the market in the same category. If other cards are offering better feature that also suits to your need, you may take that card and close the existing one. However, if the feature of your existing card is still better than that of other credit cards available in the market, you may continue with it.

Wait before exiting the credit card

Closing the credit card should be considered as the last resort. Before closing your credit card, you must also look at its side effects. For example, when you close a credit card which you have used for a long period, you may end up losing a long record of financial discipline, timely repayments, transaction patterns, etc. that boost your creditworthiness. However, if the charges on your credit card are much higher compared to the value that it delivers, you may close such a card immediately.

Transfer reward points and pay bills

If you plan to close the credit card, you must redeem the reward points that you have accumulated. Also, check all the outstanding bills and clear them before closing the card. Avoid making transactions from your card at least 1 to 2 statement cycles before you exit it. Sometimes charges on recent transactions are not reflected in the card statement and despite a closure request your credit card account may remain open. So, make sure that all the charges are paid before you close your card.

After closing your credit card, you must check your credit report to verify the closure. Sometimes the card company devalues their card as a temporary measure and they again come up with new features after a few months. So, before closing your card, it is better to know whether the changes are temporary, or the card has been devaluated permanently.