Credit cards and contractionary Monetary policy

[Obnox]

Calling out all the veterans, the pros and everybody who has been playing around with credit cards for 5+ years (you'd subsequently know why!).
In this high interest rate environment, we have seen massive credit card devaluations all across the industry and the flurry is not yet over. When the interest rate cut cycle starts and the banks start to get more liquidity, let's assume by Q1 AY25 in India, they would slowly start to re-value their credit cards (or launch new ones) in hopes of reaching out to the masses yet untouched and to push up the utilization for the existing account holders.

Through this discussion, I wish to understand the following aspects about the industry:

• Do banks revalue the existing cards or launch new (better) ones when credit becomes cheaper ?
• Does it make sense to hold the cards which are massively devalued in hopes that bank would re-value it again in the future ? This question is specially relevant for the premium cards for which the banks have somewhat relaxed the eligibility criteria recently, prime examples being Magnus and IDFC Wealth.

Would love it if anyone can speak about their go to cards which were subsequently devalued but they held onto it anyways and soon enough it was revalued back to its original best.

 

[Das.N]

Bank can launch some new cards with great benefits but chance of revaluating the old card is very less.

 

[Obnox]

Bank can launch some new cards with great benefits but chance of revaluating the old card is very less.

For premium cards I feel that there is a brand factor also involved, wont launching new cards erode the brand value ? For semi premium and entry level cards, as you said, it totally makes sense to just launch a new one.