What to Do When Credit Card Benefits Got Cut?

What Do You Do When Your Credit Card Benefits Got Cut?

Don’t you know that as a credit card user, you have the power over your credit card issuer? Yes, you heard it right. Many credit card users failed to understand that they can do something the moment that their credit card issuers cut some credit card benefits and change terms. Banks make money by increasing the credit cards? annual fees by 22%. For credit card users, nothing could be more heart-breaking than this. 

For instance, Chase Sapphire Reserve?s announcement of an increased annual fee by $100 has upset many credit card holders all over the country. Though such increase was paired with perks like Lyft Pink membership and DoorDash credits, the new rate is indeed a royal pain for a lot of people.

Aside from Chase, Citi concluded the Price Reward feature while American Express increased Delta-branded credit cards? annual fees. These credit card issuers implemented new restrictions to Centurion Lounge access.  

But don’t take these changes so hard. Although your credit card company takes away some benefits that make you a happier customer, you are not powerless. You can do something about it. 

What Can You Do as a Credit Card Owner?

Are you ready to break up with your credit card? If not, listed below are the options that you can 


Decide which card is worth-keeping. 

Knowing that the annual fee has increased, choose from among your cards the ones that you can?t afford to lose. As they say, fewer cards mean fewer headaches. Having two credit cards in your wallet is more than enough for cashless and convenient purchases. 

Go for a card downgrade.

To steer clear from the annual fee, go ahead and consider downgrading your card. What?s the point of keeping a Chase Sapphire Reserve and pay a $550 annual fee when you can have a Chase Freedom Unlimited at zero annual fees? With the downgrade, your account history and card number remain intact. So, you can still keep your credit line and existing rewards. 

Nevertheless, downgrading might lose the value of your points. This means that you can no longer spend the points you earned based on its actual worth.

Request a retention offer from your bank.

As you are serious about canceling your credit card, the bank will provide you with a retention offer. The bank can always modify its terms and conditions just to hold you up from canceling your credit card. 

It may waive or reduce annual fees by providing you bonus points once you?ve met a minimum spending cost. 

Cancel your credit card.   

If you think that the above options are not workable, try this last option. 

Since the terms and conditions aren?t good enough, it is best to cancel your credit card. And if such a decision can free you from all the financial discomforts that you have been facing right now, go ahead and dial your bank?s customer care number. 

But, here?s a thing. Once it is closed, make sure to pay the balance to avoid problems on overblown interest. Thus, credit card cancellation can harm your credit score.

Though credit card users do not have the power over banks? legal changes and alterations, they are properly notified by the bank about these changes. Through a notification letter, they are made aware of the added fees that they need to pay in the future. Lastly, it is perfect to know that the government sees to it that these credit card holders? rights are well- protected by providing regulations that credit card companies ought to follow. 

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