HDFC Bank and Axis Bank have made significant changes to their premium credit card offerings, leaving cardholders in a quandary. With airports becoming the second home for frequent travellers, lounge access privileges have long been a coveted feature of premium credit cards. However, HDFC Bank's recent announcement of changes to its lounge access programme for Regalia credit cardholders, effective from December 1, has set off a debate that's been brewing for a while.

Live TV

Loading...

HDFC Regalia, one of the most popular premium credit cards in the Indian market, has traditionally been known for its generous lounge access benefits. Under the new rules, cardholders will need to meet a spending criterion of ₹1 lakh or more in a calendar year to access lounge facilities, and they will be able to avail two complimentary lounge access vouchers as part of a quarterly milestone.

This move follows Axis Bank's decision to revise the terms of its Magnus Credit Card, which removed the monthly milestone benefit and increased the annual fee, starting from September 1. The bank also devalued the rewards associated with the card and discontinued the Tata CLiQ voucher for newly onboarded members.

According to a Live from a Lounge analysis, the cost for banks per lounge visit increased from ₹600 on average two years ago to ₹990 in the second quarter of FY24 (July-September 2024), marking a 60% increase in just 24 months. Some experts in the banking industry note that the costs for lounge access have surged from 0.10% to 0.25% of the product cost, necessitating the adjustments in benefits.

With these changes in mind, consumers may find themselves wondering which premium credit card to choose.

Rohit Chhibbar, Head of Credit Cards Business at Paisabazaar, offers a comparison between the HDFC Regalia Gold and Axis Magnus Credit Card to help prospective cardholders make an informed choice. Take a look:

HDFC Regalia Gold Credit Card versus Axis Magnus Credit Card:

How to choose between the two?

Choosing between the HDFC Regalia Gold and Axis Magnus Credit Cards can be a matter of evaluating one's spending habits, preferences, and the inclination towards premium privileges.

According to Chhibbar, HDFC Regalia Gold may be suitable for moderate spenders who can spend up to ₹7.5 lakh in a year, maximising its milestone benefit as well as availing a fee waiver. The card offers additional benefits on brands like Marks & Spencer, Myntra, Reliance Digital, Nykaa, covering major lifestyle spend categories.

Magnus, on the other hand, comes with extensive benefits across multiple categories like shopping, travel, movies, dining, health and wellness, etc. along with some premium features like unlimited international and domestic lounge visits, VIP assistance at airports, etc.

"Axis Bank's Magnus also holds great value for high spenders who can spend around ₹2 lakh a month to make the most of its benefits. Axis Magnus requires a minimum annual income of ₹24 lakh, catering to high income individuals," he said.

The difference in annual fees, with HDFC Regalia Gold at ₹2,500 and Axis Magnus at ₹12,500, is also a crucial consideration. Consumers who are eligible for both the cards must assess their spending habits, preferences and their inclination towards premium privileges, in order to make the right choice between the two.

First Published:Nov 6, 2023 2:42 PM IST