HDFC credit card Bank is one of India’s leading financial institutions, offering various credit cards to suit various needs. The bank’s cards cater to a diverse audience, from cashback to travel rewards. HDFC Bank occasionally updates its terms and conditions, as with any financial product. Recent updates to HDFC credit card policies have left many users wondering how these changes will affect their spending habits and rewards. In this article, we will walk you through the HDFC credit card new rules that came into effect on September 1.
Whether you are a long-time HDFC cardholder or planning to apply for a credit card, understanding these updates is crucial to making the most out of your card. We’ll explain these new policies in detail, ensuring you are fully aware of how they impact your rewards, fees, and benefits.
HDFC Credit Card New Rules: Key Updates
Starting from September 1, the following important updates were implemented across various HDFC credit cards. These changes affect reward points, transaction limits, and cardholder benefits. Let’s explore them in detail.
1. Reward Points Cap on Utility and Telecom Transactions
A significant update pertains to reward points earned on utility and telecom payments. Here’s what you need to know:
- Utility Transactions: For transactions like electricity, gas, water bills, and other utility payments, the reward points are now capped at 2000 points per calendar month.
- Telecom & Cable Transactions: Similarly, transactions for telecom services and cable payments will also be capped at 2000 reward points per calendar month.
This change ensures that users cannot accumulate unlimited reward points from these specific categories, making it essential to manage your utility and telecom payments carefully to maximize benefits.
2. No Reward Points for Education Payments via Third-Party Apps
HDFC Bank has made a notable change regarding education payments. Earlier, users could earn reward points when paying for education expenses through third-party apps like CRED, Cheq, MobiKwik, and others. However, from now on:
- Third-Party Apps: Payments made through third-party apps will NOT earn reward points.
- Direct Education Payments: If you make payments directly through college or school websites or via their POS machines, you will still earn reward points.
This change will affect cardholders who frequently use third-party payment apps to pay tuition fees or other educational expenses.
3. Exclusion of Easy EMI Transactions from Reward Points
For those using Easy EMI options, another change is that such transactions will NOT earn reward points. This rule applies to specific credit cards like MoneyBack+ and Freedom cards. If you often convert purchases into easy EMI payments, you will no longer earn rewards for those transactions.
4. HDFC Credit Card Reward Point Earning Structure
The earning structure for reward points has been updated for specific HDFC credit cards:
- For Regalia First & Business Regalia First cards, you will earn 3 reward points for every Rs. 150 spent on eligible transactions. This offers more points on eligible purchases and ensures that high spenders benefit more.
This new reward structure is designed to make credit cards more rewarding for frequent spenders, particularly those who use their cards for business-related transactions.
5. Infinia Credit Card Fees and Benefits
The HDFC Infinia Credit Card is one of the premium cards offered by HDFC Bank. The recent updates to the fees and benefits for this card include:
- Joining/Renewal Membership Fee: The Joining/Renewal fee is Rs. 12,500 + applicable taxes. However, you can earn 12,500 reward points upon activation and payment of this fee.
- Waiver on Renewal Fee: If you spend Rs. 10 lakhs or more in the previous 12 months, you can get the renewal membership fee waived off for the next year.
- Lounge Access: Unlimited complimentary lounge access is available at over 1,000 airports worldwide, making this card an excellent choice for frequent travelers. The benefit also extends to add-on Priority Pass holders.
The HDFC Infinia Credit Card offers luxurious perks for high spenders, and these updated fees and benefits make it a valuable option for elite users.
6. Membership Eligibility for HDFC Infinia Card
The Infinia Metal Edition is available only by invitation. To be eligible for the Infinia credit card, you need to meet specific income and credit score criteria. Since it is an exclusive card, its benefits are tailored for high-net-worth individuals who require advanced financial tools and rewards.
Understanding Credit Card Usage and Responsibility
While HDFC credit cards come with several enticing benefits, using a credit card is a big responsibility. If mismanaged, credit cards can lead to excessive debt and financial instability. Here are some essential tips to ensure that you make the most out of your HDFC credit card while avoiding unnecessary pitfalls:
1. Choose a Card That Fits Your Needs
Before applying for an HDFC credit card, make sure you consider the following factors:
- Fees and Charges: Compare annual fees, interest rates, and transaction fees associated with different cards.
- Reward Points Structure: Choose a card that aligns with your spending habits. For instance, if you spend a lot on dining and entertainment, select a card that offers higher rewards for these categories.
- Interest-Free Period: Ensure you can pay off the balance in full before the interest-free period ends to avoid additional charges.
2. Stick to a Single Credit Card
Having multiple credit cards might seem tempting, but it can quickly lead to financial chaos. For first-time credit card users, it’s recommended to stick to one card that offers the best value for your spending. This way, you can build a healthy credit history and avoid accumulating unnecessary debt.
3. Pay Your Bills on Time
Paying your credit card bill on time is crucial for maintaining a good credit score and avoiding high-interest charges. Most cards offer a grace period during which no interest is charged, but once the grace period ends, interest rates can soar. Always ensure that you pay off your entire balance before the due date to enjoy interest-free benefits.
4. Use Credit Wisely
Credit cards should be used for planned purchases rather than impulsive buys. Remember, your credit limit is not free money; it’s a loan that you must pay back. Avoid exceeding your credit limit, as it can lead to penalties and damage your credit score.
Conclusion: Stay Updated on HDFC Credit Card Rules
HDFC credit cards offer numerous benefits, but it’s important to stay updated on the bank’s new rules and guidelines. These updates are designed to ensure that credit card usage remains balanced and that rewards are distributed fairly. By following the new rules, you can maximize your rewards and avoid unnecessary charges.
Make sure to review the updated HDFC credit card policies before making your next purchase. Whether you are a frequent traveler or a regular shopper, understanding these changes will help you make the best use of your HDFC card.