I recently received information from one of our readers, Mr. Ramesh Shrivastav, about the IDFC FIRST WOW! Credit Card.
Based on the information provided by Mr. Shrivastav, I have written a review discussing the various aspects of this secured credit card, including its benefits, drawbacks, and suitability for different users.
How the IDFC FIRST WOW! Credit Card works
The IDFC FIRST WOW! Credit Card is a secured credit card that requires a fixed deposit (FD) of at least Rs 5,000. The credit limit on the card is 100% of the FD amount, which can even go up to 200% in the best-case scenario.
Benefits of using the IDFC FIRST WOW! Credit Card
- Lifetime free card (no joining or annual fee)
- 1% reward rate on all spends (except fuel, insurance, and EMI transactions)
- 0% markup on Forex spends
- 6% interest on the fixed deposit
- Complimentary roadside assistance
- Fuel surcharge waiver (1% up to Rs 200/month)
- There is a 2 lakhs rupee personal accident cover and a 25,000 rupee lost card liability cover
Drawbacks
- No reward points on fuel and insurance transactions
- No milestone benefits
- Reward redemption fee of INR 99+taxes (starting from 1st October 2022)
5 Reasons to Apply for the IDFC FIRST WOW! Credit Card:
- Lifetime free card: The IDFC FIRST WOW! Credit Card has no joining or annual fees, making it an affordable option for first-time credit card users who want to build their credit score without incurring extra costs.
- Attractive reward rate: The card offers a 1% reward rate on all spends (except fuel, insurance, EMI, and cash withdrawal transactions), which is a competitive rate for a secured credit card.
- Higher credit limit: Compared to most secured credit cards, the IDFC FIRST WOW! Credit Card offers a credit limit of up to 200% of the fixed deposit amount (minimum of 100%).
- 0% forex markup fee: If you frequently travel or make purchases in foreign currencies, this card’s 0% markup fee on forex spends can save you money on international transactions.
- High fixed deposit rate: The card comes with a high fixed deposit rate of 6.25%, which can help you earn interest on your savings while building your credit score.
5 Reasons Not to Apply for the IDFC FIRST WOW! Credit Card:
- Reward redemption fee: Starting from October 1st, 2022, there will be a reward redemption fee of INR 99 + taxes, which may be a drawback for some users.
- No milestone benefits: Unlike other credit cards, the IDFC FIRST WOW! Credit Card does not offer any milestone benefits, such as bonus points or vouchers, for reaching specific spending thresholds.
- Limited reward categories: The card does not provide reward points on fuel and insurance transactions, which could be a disadvantage if you have high spending in these categories.
- Secured credit card requirement: To obtain this card, you need to have a fixed deposit with IDFC First Bank, which may not be ideal for those not interested in opening an FD account or having a relationship with the bank.
- Better alternatives for high spenders: If you have a higher spending capacity and a good credit score, you may find other credit cards in the market that offer more comprehensive rewards, benefits, and features that cater to your specific needs.
My personal experience with the card
As a first-time user of the IDFC FIRST WOW! Credit Card, I found it to be a good choice for building my credit score. With a transaction reward rate of 1% and interest on the fixed deposit of 6%, it’s a rewarding way to build credit.
However, minor drawbacks include missing milestone benefits and reward points on fuel and insurance transactions.
Competition
The IDFC FIRST WOW! Credit Card stands out in the market due to their credit limit of up to 200% and a minimum of 100% of the FD amount. It also offers a lower FD requirement of just Rs 5,000 than other secured credit cards.
The 1% reward rate and 0% forex markup are commendable features, especially for a secured credit card.
Conclusion
In conclusion, the IDFC FIRST WOW! Credit Card is a good product with a decent 1% reward rate. It’s an excellent choice for first-time users who cannot get a regular credit card.
Although it has minor drawbacks, such as no reward points on fuel and insurance transactions and no milestone benefits, the overall benefits outweigh these limitations.
If you’re looking for your first credit card, I recommend giving the IDFC FIRST WOW! Credit Card a try.
