You must have heard of a bank or a credit card company offering a lifetime free credit card. This usually means that they have waived off the “annual fee” charged on it. This is exactly why it is also called a “zero annual fee credit card.”
A credit card annual fee is a cost you will be charged every year from your account. You pay this fee to keep using the card.
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The phrase “Lifetime free credit card” sounds too good to be true, doesn’t it? But is this claim legit? Let’s find out if it is really a “no strings attached” benefit.
When you avail a credit card, you may have to pay a joining or annual fees on it. However, there are many financial institutions who offer a credit card without such charges. Those cards are known as free lifetime credit cards.
The annual fees on these cards are waived off if you spend a minimum amount in a year that is specified by your card issuer.
In these cards, there is no minimum amount that you need to spend and no annual fees would be charged.
1. Interest Rate2. Joining Fee3. Cash Advance4. Transaction Fee5. Late Payment Charges6. Overlimit Charges7. Card Replacement Fee
1. As we saw earlier, you don’t need to pay annual fees. You can buy anything you want and pay later without extra charges as credit cards provide up to 60 days of the interest-free period.
2. Some credit cards give reward points for every transaction.
3. These can be redeemed to get exciting offers.
4. Some credit cards also offer a certain percentage of your spends as cashbacks on every transaction. It also improves your credit score when you pay back on time.
5. Many card providers offer attractive insurance, travel and shopping benefits.
There are instances when sales people sell credit cards over cold calls and lie about the card being lifetime free. Never take a credit card without understanding the terms & conditions clearly. Because If you refuse to pay the extra charges later, it will negatively impact your credit score.
This will ensure that you can spend your reward points without worrying about them expiring. Ensure that there are no fees to redeem your reward points. Ideally, you should never choose a credit card which requires you to pay extra charges to redeem reward points you have earned unless the rewards are worth are worth spending the extra money on.
A Lifetime Free Credit Card Might Start Charging An Annual Fee In The Future.
After mid-2021, HDFC started charging annual fees on its MoneyBack credit card which used to be a lifetime free credit card until then.
The Lifetime Free Benefit Of Your Credit Card Might Not Be Applicable When You Upgrade The Card.
When your credit score increases, you might want your bank to upgrade your lifetime free credit card for a higher limit and more privileges. Make sure you confirm with your bank that the upgraded card is also lifetime free.
Also Read: What is the Credit Limit? How does it work?
You have to meet your credit provider’s eligibility criteria for availing a free credit card. But what’s more important than that is to inquire whether the financial institution provides a lifetime free credit card in the first place.
You need to submit the required documents and information of the credit card provider to complete your application.
Here are some documents that you should keep handy to expedite your credit card application process.
This includes your PAN, Aadhaar card, Passport, Driver’s License, etc. to verify your identity.
This includes your KYC documents like Aadhaar card, Passport, Utility bills, etc. to complete your KYC process.
You may have to provide your income proof like your bank statements or salary slip. Credit card providers often ask this to check your capacity to pay your credit card bills.
The procedure of applying for a life time free credit card depends on the credit card provider you’re choosing. In today’s date, the online application process with no paperwork has made credit even more accessible. To apply for a credit card, you can simply visit the credit provider’s website or complete the application on their portal/app.
Lifetime free credit cards may be an attractive option as you could avoid annual fees, but it’s important to compare different options, read the fine print and understand the terms and conditions before signing up.
A free for life credit card is when you don’t have to pay any kind of joining or annual fees on your credit card.
While you may have to pay an annual or joining fees on your credit card, there are many providers who offer you one without any charges. This is also known as lifetime free credit cards.
There are no hidden charges on lifetime free credit cards.
If you use a lifetime free credit card and do not clear the bill on time, you may have to pay a late penalty and also see a negative impact on your credit score.
While paying an annual fee for a credit card can be worth it, there are many providers who offer lifetime free credit cards without such charges.
Any eligible borrower who has a good credit score and is looking for a credit card without any additional charges like annual fees or joining fee can apply for this.
If you want to make foreign transactions using a no annual fee credit card, you will have to check with your credit card provider if they offer that facility.
Simply paying your credit card bills on time can help you improve your credit score significantly.
Yes, you can! There are many credit card providers who offer life time free credit cards online. Make sure you choose a reputed and trusted source for the same.