What Credit Limit Does Indigo Start With? Traveling is a fulfilling encounter, but trying to find your way on the airline credit card can be like flying without radar.
If you are a frequent flyer with IndiGo, their co-branded credit cards may offer a solution to unlocking rewards and travel benefits.
However, before you take off, it’s important to know what credit limits imply for your journey.
What Credit Limit Does Indigo Start With?
Low-cost Indian carrier Indigo has collaborated with lenders like HDFC and Kotak Mahindra Bank to provide frequent flyers with credit cards designed exclusively for this market segment.
These card products referred to as “6E Rewards” earn customers some points (or “6E Rewards”) when they make everyday purchases that can be redeemed for free flights, and discounted convenience fees among other travel goodies.
Why is knowing your initial credit limit important?
Credit limit stands for the maximum amount of money that can be borrowed through the use of one’s bank card. It’s an essential feature in using credit responsibly: here is why:
- Managing your spending: Limits assist one in maintaining a budgeted lifestyle not falling into an overspending trap which leads to debts and high costs related therewith.
- Credit score impact: Maintaining low levels of debt utilization ratio(credit used/credit limit) helps boost personal scores that are vital when it comes future loans or favorable interest rates.
Who is Indigo as a credit card issuer?
IndiGo does not issue its own cards directly; instead it partners with well-established Indian banks such as HDFC and Kotak Mahindra.
The banks handle everything from processing applications for new accounts through approvals up until ongoing management of these accounts.
What types of Indigo credit cards are available?
IndiGo has various credit card tiers, which are designed for different spending habits and travel requirements. Some of the best-known options include;
- Basic cards: Best for first-time users or individuals with limited credit history who have lower credit limits and basic reward programs.
- Premium cards: These come with higher credit limits, faster reward earning rates as well as other travel perks like airport lounge access, and priority boarding among others.
What benefits and features do Indigo credit cards offer?
Here’s a sneak preview of the cool benefits you’ll get from owning an Indigo Credit Card:
- Earn 6E Rewards: Get free flights on IndiGo by redeeming these points which brings you closer to your next destination
- Discounted convenience fees: You also save on each booking fee when buying your IndiGo tickets thus making your travel plans cheaper.
- Priority boarding: Skip through check-in lines and board ahead of everyone else, creating a more hassle-free trip.
- Airport lounge access: Chill out in luxurious airport lounges courtesy of selected premium cards.
- Welcome benefits: Depending on the card variant issued, expect bonus points, complimentary flights or any other benefit upon card endorsement.
Demystifying Factors Affecting Initial Credit Limits
There are several reasons why you may be given a particular limit with respect to your Indigo card. Here we go:
- Credit history and score: Your limit is typically higher if you possess good ratings that show an overall strong credit history.
- Income level and employment status: Having a stable income source from full time employment proves repayment capability that can lead to a higher credit limit.
- Debt-to-income ratio (DTI): This ratio compares one’s total monthly debt obligations with their gross salary. A lesser DTI reflects better financial standing which would mean that one qualifies for a higher line of credit.
- Previous credit card usage: If you have been using your previous credit cards responsibly, this could influence the initial limit imposed on you by the firm.
Indigo’s Approach to Setting Credit Limits
Most card issuers consider different factors like those listed above when setting limits. They may also employ internal scoring methods to evaluate your creditworthiness.
Specific policies and criteria of Indigo
While they do not release specific details about their process of determining credit limits in public, it is expected that they are likely to use such an approach.
The bank it works with (HDFC or Kotak Mahindra) may also set its own parameters for fixing such limits.
Factors considered by Indigo when determining credit limits
These might be some things Indigo considers in deciding upon an initial line of credit; although we don’t know all of them exactly;
- Your application information: Your salary, employment situation, and other outstanding balances will be examined.
- Your credit report: What really matters here is your history as well as your rating regarding money repayment.
- The specific Indigo credit card you apply for Different pricing tiers signifies different minimums and maximums on a scale of possible charges.
By knowing these factors and managing your credits properly, one can increase his or her limit possibility when he or she applies for an Indigo Card.
Consequently, wise utilization of a card plus making timely payments will lead to gaining benefits and at the same time creating.
Understanding Credit Limits and Maximizing Rewards
Indigo’s co-branded credit cards, issued by banks such as HDFC and Kotak Mahindra, have become a favorite among frequent Indian travelers.
These have attractive features like reward points on IndiGo flights, priority boarding, and lounge access.
However, before you take a flight with your Indigo card, it is important to understand the credit limits and how to manage them.
How Much Can You Spend?
The maximum amount of money that you can borrow using your credit card is referred to as a credit limit. It is simply the topmost amount of money that you are allowed by the issuer to spend based on your creditworthiness.
- The range for New Applicants: While this may vary depending on the bank and type of card; new Indigo cards generally have a range of ₹50,000 – ₹2,00,000 (INR Fifty Thousand to Two Lakh).
- Variations Based on Creditworthiness: In determining your credit limit, your credit score plays a major role. A strong credit history and higher income will generally result in a higher limit.
- Comparison with Other Issuers: For instance Indigo has almost similar range of limits for their major cards compared to other issuers in India. Nonetheless some rewards or high net worth targeted cards may necessitate having higher IBLs.
Strategies to Increase Your Credit Limit
Increasing your line of credit involves building a good history in borrowing. This means clearing all outstanding debts on time or early since late payments affect debt ratios negatively.
Go into your bank account settings and schedule automatic minimum credit card payments. If you can, you should aim to completely settle your credit card balance every month.
Part of the things one may include on their credit report that positively affects it is having multiple types of cards such as rewards cards and secured cards for example. Regularly verify your credit file and take prompt action against any discrepancies identified.
Once you have been able to build up an excellent borrowing history; officially ask your bank for more money that is available on your account.
Using Your Credit Limit Wisely
Responsible usage of your credit card is the key to enjoying full use of your allowed IBL while benefiting from Indigo Card offers.
- Develop a spending plan to keep track of how much you spend so as not to exceed the amount allowed on your credit limit.
- Utilization of reward programs offered by the same like earning 6E Rewards on IndiGo flights and partner purchases. Only cash advances if there are no other options; these transactions typically charge higher interest rates.
- Be Never tempted to max out your credit limit. Always keep your credit utilization ratio below 30% so that you can maintain good credit.
- Late payments have a tremendous impact on the credit score and they will attract hefty penalty charges. Paying only the minimum keeps you in debt longer and increases the interest paid.
Conclusion
What Credit Limit Does Indigo Start With? Having knowledge about your credit limits and sticking to them responsibly is crucial for a rewarding experience with your Indigo card.
You can maximize travel perks, build a sound credit history, and gain financial control by adhering to the above tips.
To frequent travelers, Indigo cards are useful because they come with attractive rewards programs as well as travel benefits.
Managing finances well and strategically approaching credit limits will make it possible for one to get the best out of his or her Indigo card thus taking off into rewarding journeys.
