IDFC FIRST WOW! vs. ICICI Bank Instant Platinum: Which is a better FD-based secured credit card? | Mint

A good credit score of 750 and above is one of the eligibility criteria for getting a credit card or other credit instruments like loans. But what if you have started working recently and have never availed of a credit instrument? In such a case, your credit score will be -1, which indicates no credit history. So, how can you get a credit instrument in such a scenario? The answer is a secured credit card or a secured loan. 

In this article, we will analyse two secured credit cards: The FIRST WOW! Credit Card from IDFC FIRST Bank and the ICICI Bank Instant Platinum Credit Card. We will compare the features and benefits of both cards and see which one is a better secured credit card.

What is a secured credit card?

A secured credit card is a credit instrument issued against the security of a fixed deposit. The credit limit usually ranges from 75% to 100% of the fixed deposit amount. For example, suppose a customer makes a fixed deposit of Rs. 1 lakh and the bank issues a secured credit card with a credit limit of 80%. In this case, the customer will get a secured credit card with a credit limit of Rs. 80,000.

A lien is marked on the fixed deposit. It means the customer will not be able to withdraw money from the fixed deposit till the credit card issued against it is active. On maturity, the fixed deposit will get renewed automatically for the same tenure as before.

What is the FIRST WOW! Credit Card?

The FIRST WOW! Credit Card is a secured credit card offered by IDFC FIRST Bank. It can be issued to people with no credit history, without the requirement of income document proofs. The credit limit offered is 100% of the fixed deposit (FD) amount. It is ideal for homemakers, senior citizens, students, etc., who usually don’t have an income source. As it is an FD-backed card, the issuance is assured with instant approval.

Features and benefits of FIRST WOW! Credit Card

The card offers 4X reward points, i.e. four reward points for every Rs. 150 spent. The 1% fuel surcharge is waived. Insurance premium payments and utility bill payments earn 1X reward points. The bank comes up with various instant discount and cashback offers from time to time.

The value of each reward point is Rs. 0.25, and the reward points never expire. They can be redeemed anytime, anywhere online for payment against purchase transactions or gift vouchers.

The card is lifetime free i.e. there is no joining and annual renewal fee. One of the USPs of the card is the zero-forex conversion fee. Another good feature is the option to increase the credit limit. The customer can make an additional fixed deposit and get the credit limit on the card increased in the same proportion. All ATM cash withdrawals with the FIRST WOW! Credit Card are interest-free for up to 45 days. There is a cash advance fee of Rs. 199 + taxes per transaction on ATM cash withdrawals.

Exclusions and limitations

There are no reward points on fuel and EMI transactions. Rent and property management transactions will attract a 1% fee on the transaction amount, subject to a minimum fee of Rs. 249 per transaction. For utility bill payments of above Rs. 20,000 in a billing cycle, there will be a 1% fee on the transaction amount.

Overall, the FIRST WOW! Credit Cards are loaded with powerful features and come free for a lifetime.

Features and benefits of ICICI Bank Instant Platinum Credit Card

The ICICI Bank Instant Platinum Credit Card is a fixed deposit-backed credit card. It is issued on a lifetime-free basis, i.e. there is no joining and annual renewal fee. The card issuance requires a minimum fixed deposit of Rs. 50,000 or above.

The card offers two reward points for every Rs. 100 spent. Spends on utilities and insurance categories earn one reward point for every Rs. 100 spent. There are no reward points on fuel transactions. Cardholders can avail of a 25% discount, up to Rs. 100, on the purchase of minimum two movie tickets through BookMyShow. The offer can be availed up to two times a month. The 1% fuel surcharge is waived on fuel transactions of up to Rs. 4,000 at HPCL petrol pumps on ICICI Merchant Services swipe machines.

The reward points can be redeemed against gift vouchers across multiple categories and other products through the ICICI Bank Rewards platform.

Comparison between FIRST WOW! and ICICI Bank Instant Platinum credit cards

Both the cards are offered on a lifetime free basis i.e. there is no joining and annual renewal fee. The FIRST WOW! Credit Card offers 4X reward points on every Rs. 150 spent, which translates into a 0.67% reward rate. The ICICI Bank Instant Platinum Credit Card offers two reward points for every Rs. 100 spent, translating into a 0.50% reward rate.

The FIRST WOW! Credit Card have a zero-forex conversion fee. It allows interest-free ATM cash withdrawals for up to 45 days with a cash advance fee of Rs. 199 + taxes per transaction. Thus, the FIRST WOW! Credit Card from IDFC FIRST Bank offer some better features than the ICICI Bank Instant Platinum Credit Card. If you have a choice, you may give preference to the FIRST WOW! Credit Card from IDFC FIRST Bank.

Both credit cards are good for new-to-credit customers who want to build and maintain their credit history. Secured credit instruments like secured credit cards and loans are a good way to start building your credit history. Once you have a good credit score of 750 and above, it opens the doors to avail of other unsecured credit instruments like personal loans and unsecured credit cards.

Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.