We get Credit Card based on certain perks which the Credit Card offer. But the problem is over time, when the Credit Card company sees that certain perks is not beneficial, they remove it and that process is called Devaluation. And the devaluation happens mainly for Life Time Free Card or the Card which is cheap.
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For example, I got the AU Ixigo Credit Card which was Life Time Free and it was offering 0% Forex, 20 Pts for Rs 200 Ticket Booking and Airport Lounge Access. There were some other perks too but for me these are the best ones. I didn't have the IRCTC card so this works best. But recently they devaluate the card and removed the Free Lounge Access as well as changed the 20 Pts to 10 Pts for the Rs 200 Ticket Booking.
And this is not the only Card which has gone for devaluation. There were other cards in my portfolio which has went for the devaluation. So just like the rebalancing in the stocks, we have to rebalance the Credit card too so that we get the best card in our pocket always. Like I need 3 cards with the Lounge Access for my family. And that's why I try to keep 3 cards which had the Lounge access. But I have to always look for the devaluation so that I don't stuck at the airport for no Lounge access.
A lot of people usually keep a premium Card always with them so that the devaluation doesn't affect them. For the premium Card you have to pay the charges but you will get the same amount back in form of points. And along with that you will get som extra. Because the more premium Card you use the more benefits you will get along with that your returns would be much more.
For example, a normal Card will give 1 to 2% back as returns whereas premium cards usually gives more than 6% returns which is actually huge. The more you spend, the more you can save. But you should not spend only to save. Because that can be a receipe for Debt trap.
