IDFC First Bank's co-branded credit card with IndiGo: Should you apply?

The IndiGo IDFC FIRST Credit Card offers a dual-network setup, providing two cards under one account: a RuPay card and a Mastercard.

IDFC FIRST Bank has partnered with IndiGo to launch a co-branded credit card, targeting frequent travelers. This card allows users to earn IndiGo BluChips on every transaction, which can be redeemed for flights, seats, meals, and more on IndiGo.

Let's break down the rewards, fees, and limitations of this card to determine if it's a worthwhile addition to your wallet.

What’s the offer?

The IndiGo IDFC FIRST Credit Card offers a dual-network setup, providing two cards under one account: a RuPay card and a Mastercard. This allows transactions both domestically and internationally, as well as for UPI payments.

This card offers a rewards structure that earns up to 22 IndiGo BluChips per Rs 100 spent on IndiGo flight bookings made via the official website or app. The users get up to 25,000 additional IndiGo BluChips vouchers by spending Rs 12 lakh annually.

“It’s important to note that BluChips don’t have a fixed, defined value when you plan to redeem; instead, they have a dynamic value,” explains Ankur Mittal, co-founder of Card Insider, a platform that tracks credit card business. So, the value of one BluChip varies from Rs 0.40 to Rs 0.60, he adds.

Fees and charges

The IndiGo IDFC FIRST Credit Card has a joining fee of Rs 4,999 plus GST. However, the bank waives this fee if you invest in a fixed deposit (FD) of Rs 1 lakh or more. The renewal fee is Rs 4,999 plus GST. If you have an outstanding balance, you'll be charged an interest rate of 0.71 percent to 3.85 percent per month, which translates to an annual rate of 8.5 percent to 46.2 percent.

The bank charges a 1.49 percent forex markup for international transactions. According to Mittal, while the IndiGo IDFC FIRST Credit Card's forex charge is competitive, it's not the best option in its price range. Other cards, like the IDFC Mayura Credit Card, offer zero forex markup fees with similar joining and annual fees, making it a better alternative, he adds.

What works?

The cardholders can cancel non-refundable hotel and flight bookings twice a year, with a maximum coverage of Rs 25,000 per cancellation. According to Mittal, this feature provides significant protection for both primary and add-on cardholders in case of emergencies.

This card also comes with several insurance covers, including a Rs 1 crore air accident cover, providing valuable protection for cardholders.

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What doesn’t work?

One of the major drawbacks of this card is the lack of airport lounge access. According to Mittal, “For a card that comes with a hefty Rs 4,999 annual fee, this is quite disappointing, especially considering it’s an airline co-branded credit card.”

According to Sumanta Mandal, founder of TechnoFino, a platform that reviews debit and credit cards, this BluChips act like a currency to pay for flights, but their value is dynamic and subject to change based on factors like flight route, booking date, and availability, as determined solely by IndiGo.

“If we assume an average value of Rs 0.50 per IndiGo BluChip, the card offers a 3 percent return on IndiGo flight bookings, which is relatively low for a co-branded card targeting frequent flyers. Moreover, for regular spends, the return rate drops to just 1.5 percent, making it less rewarding,” Mandal adds.

The cardholder doesn’t get 5,000 IndiGo BluChips voucher, a welcome benefit in case you apply for this card with the fixed deposit option.

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Comparison

Mittal recommends the Kotak IndiGo XL Credit Card over the IndiGo IDFC First Card due to differences in joining and renewal fees, as well as the added benefit of airport lounge access for cardholders. Despite the Kotak card's moderate rewards, it's considered a better overall option.

Should you apply?

Mittal advises that consumers have better options than the IndiGo IDFC FIRST credit card. For instance, IndiGo Kotak XL credit card offers two free visits each quarter to domestic airport lounges. Then, the reward rate for UPI transactions using this card is two IndiGo BluChips per Rs 100 spent, which is higher compared to IndiGo IDFC FIRST credit card.

However, for those who still want to apply to IndiGo IDFC FIRST credit card, Mittal recommends maximising the card's benefits, such as milestone rewards, to get the most out of it.

According to Mandal, "Given the annual fee of Rs 4,999 plus GST for IndiGo IDFC FIRST Credit Card, we expected significantly more value and benefits, but unfortunately, the card falls short of expectations." There are multiple drawbacks, as discussed.