HDFC Bank, YES Bank and more: 4 credit card changes you need to know about

The recent credit card rule changes necessitate adjustments for cardholders.

Four banks, namely Bank of Baroda, Yes Bank, IDFC First Bank, and HDFC Bank, have brought a wave of updates across various aspects of credit card usage, including interest rates, late fees, and charges associated with specific transactions. 

Bank of Baroda:

Interest rates on credit cards are a crucial factor impacting overall repayment costs. Unfortunately, a common trend across these banks is a rise in interest rates. This can significantly affect cardholders who carry a balance on their credit cards each month. The extent of the increase varies depending on the specific bank and credit card variant. 
 

Starting June 23rd, 2024, Bank of Baroda'd  One co-branded credit card issued by BOBCARD Limited (BOBCARD) will have revised charges
 

Interest Rate Hike: The interest rate on unpaid dues jumps from 3.49% per month (41.88% annually) to 3.57% per month (45% annually).
 

Overlimit Fee Increase: If you exceed your credit limit, the fee goes from 2.5% of the overage amount or Rs. 400 (whichever is higher) to 2.5% of the overage or Rs. 500 (whichever is higher). To avoid these extra fees, ensure you make timely payments and stay within your credit limit. The OneCard app allows exceeding the limit only if you specifically enable "over-limit card control."

 The bank has made late payments on credit cards more expensive. If you miss a payment or pay less than the minimum amount due, you'll be charged a higher late fee. This is an incentive to make timely payments and avoid additional charges.

New Late Payment Charges (Effective from June 23rd):

• The conditions for incurring a late payment fee remain the same (no payment or payment less than minimum due by due date).
• The late fee amount is still based on your outstanding balance.
• However, the fee range has increased:
• The minimum fee is now Rs 250 (up from Rs 100).

Swiggy HDFC Bank Credit Card

From June 21, the way cashback is handled will change significantly. Instead of cashback appearing as Swiggy Money on the Swiggy app, it will now be reflected directly on your credit card statement. This means the cashback will directly reduce your statement balance for the next month.

Direct balance reduction: Cashback earned will reduce your next month's statement balance.

Monthly update: If your statement is generated on the 21st of each month, the cashback earned in the previous month will appear in that statement.

Until June 20, cashback will continue to show up on your Swiggy app as usual.

• No change in rewards
• The cashback rewards remain unchanged. Here’s a quick rundown:
• 10% cashback: On all Swiggy app transactions.
• 5% cashback: On online spending.
• 1% cashback: On other categories.

Validity

For those with cashback already credited as Swiggy Money, it remains valid for one year. Users have until 21 June 2025 to redeem their balance via the Swiggy app.

IDFC First Bank credit Card Update: Utility Bill Surcharge

Here's a breakdown of the changes for IDFC First Bank credit cards:

New Surcharge: They will now charge a 1% fee plus Goods and Services Tax (GST) on the total amount of your credit card payments for utility bills if the total exceeds Rs. 20,000 in a single billing cycle.
 

Exempt Cards: This surcharge does not apply to three specific cards:

FIRST Private Credit Card

LIC Classic Credit Card

LIC Select Credit Card
 

Free Limit: If your total utility bill payments (including gas, electricity, and internet) within a statement cycle are Rs. 20,000 or less, you won't incur any extra charges.
 

Impact of Surcharge: If you exceed the Rs. 20,000 limit, you'll be charged 1% of the amount that goes over Rs. 20,000, plus an 18% GST on top of that 1% fee.
 

You can use your IDFC First Bank credit card to pay utility bills without any extra fees as long as the total amount in a month stays under Rs. 20,000. If you go above that limit, you'll be charged a small fee.

Yes Bank Credit Card update:

 Yes Bank has revised various aspects of their credit cards (excluding the "private" type).

Fuel Fee Category: There might be adjustments to fees related to fuel purchases on some Yes Bank credit cards.
 

Annual and Joining Fee Waiver: The way Yes Bank calculates your spending to determine if you qualify for a waiver on annual and joining fees might have changed.
 

Utility Transaction Fees: There could potentially be a new fee for utility bill payments on Yes Bank credit cards.