Devaluations are part of the journey for any credit card. But it is unlikely that a credit card will get devalued just one year after its launch. But, this is exactly what has happened with IDFC First credit cards. IDFC First has made changes (devaluations) across all its four credit card variants. The changes are in three features and as expected hit the reward rate. Here is everything you need to know.
Reduced Reward Earn Rate
The first change is in the reward earn rate for the IDFC First Bank credit cards. All cards except the Wealth variant see a change here:
- Millennia and Classic now get 1 RP/Rs 150 instead of 1 RP/Rs 100
- First Select now gets 1 RP/Rs 125 instead of 1 RP/Rs 100
- Wealth continues to get 1 RP/Rs 100
With this, the new reward rates are as below:
|Card Variant||Offline and Rental/Property Spends||Online Spends|
|IDFC First Millennia Credit Card||3 RP/Rs 150 ~ 0.5%||6 RP/Rs 150 ~ 1%|
|IDFC First Classic Credit Card||3 RP/Rs 150 ~ 0.5%||6 RP/Rs 150 ~ 1%|
|IDFC First Select Credit Card||3 RP/Rs 125 ~ 0.6%||6 RP/Rs 125 ~ 1.2%|
|IDFC First Wealth Credit Card||3 RP/Rs 100 ~ 0.75%||6 RP/Rs 100 ~ 1.5%|
Increase in Minimum Spends to unlock 10X reward points
The minimum spends to unlock 10X RP on incremental spends in a month also sees a change. The old spend requirement on all cards was Rs 20000 in a month.
|Card Variant||New Spend Requirement|
|IDFC First Millennia Credit Card||Rs 20000|
|IDFC First Classic Credit Card||Rs 20000|
|IDFC First Select Credit Card||Rs 25000|
|IDFC First Wealth Credit Card||Rs 30000|
Introduction of Redemption Fee
IDFC First Bank had ‘Zero Redemption Fees’ as one of its selling points when it launched credit cards. That is gone now. We need to pay Rs 99 plus GST ~ Rs 117 for all redemptions. This is too high considering the low rewards now.
The redemption fee is effective 1st October 2022. So, do redeem all accumulated reward points before that to avoid the fee for now.
It is sad to see IDFC First Bank credit cards getting devalued so soon. LTF and simple but good rewards were why these were in demand. But with these changes, there is not much to like in these cards except for some other benefits.
With this move, now all IDFC First Bank credit cards have different reward rates and benefits. The Wealth becomes the most rewarding variant but I do not see any value for the HNI’s in this variant as well.