These cards can be a smart financial move for those who manage their budget and payments carefully but can become a costly affair for consumers who carry revolving balances or who frequently incur additional fees.
Lifetime-free credit cards are highly promoted as a cheap source of credit with neither annual nor joining fees. Although they dont charge overt fees outright, they dont come for free either. Banks and financial institutions keep their revenues intact by charging elevated rates of interest, transaction fees, forex markups, and fees, so customers must be wary of the hidden costs.
Unlike regular credit cards, which charge between Rs 500 and Rs 10,000 a year, a lifetime-free credit card doesn’t charge any fees every year. The banks still make money from fees, interest on revolving credit, and late payment fees, among other things.
A lifetime free credit card, as the name suggests, is a credit card that does not charge any annual fees for as long as you use the card. This concept of a credit card with no annual fees forever might seem too good to be true, but lifetime free credit cards do exist, albeit with some caveats. Let’s break down in simple terms what exactly lifetime free means and what to watch out for when applying for such a card.
The Meaning of Lifetime Free
The term “lifetime free” when used for a credit card means that the issuing bank will not charge you any annual or renewal fees for having the credit card. Typically most credit cards have an annual fee ranging from Rs. 500 to even Rs. 1 lakh for premium cards. This fee is charged every year to continue using the services of the credit card. A lifetime free credit card dispenses with this fee forever as long as you keep the account active.
Some key things to note about lifetime free credit cards
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It covers only the annual fees and not any other charges like late payment fees, cash advance fees, etc. Those will still apply if you miss payments or use the card incorrectly.
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Most lifetime free credit cards have an expiry date after which you might have to apply again. This is usually between 5-10 years.
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When people use the word “lifetime,” they usually mean your lifetime, not the lifetime of your family members. The lifetime free benefit is not transferable to heirs.
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The credit card company can still close the account if it’s not being used or if you don’t make payments on time. You don’t have to pay annual fees as long as the account is open.
Advantages of Lifetime Free Credit Cards
The best thing about credit cards that don’t charge annual fees is that you save money over time. This makes the cards perfect for people who want to use credit wisely without having to pay fees over and over again. Other advantages include:
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Helps avoid card inactivity or closure due to inability to pay annual fees
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Useful as a backup card to build long-term credit history
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Can be used to make occasional payments like subscriptions when primary cards have capped limits
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Rewards and offers comparable to fee-based cards in many cases
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No need to remember to close card to avoid annual fee at renewal
Things to Consider Before Applying
While lifetime free sounds attractive, there are a few things you should evaluate before applying for such a credit card:
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Credit limit – Most banks assign lower limits on these cards compared to fee-based ones
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Rewards – Some lifetime free cards have fewer cashback and reward redemption options
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Acceptance – Premium cards usually have higher acceptance at merchants
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Customer service – Review service quality as some banks may prioritize fee-paying cardholders
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Alternatives – Consider cards with annual fees but higher rewards if your spending is high
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Types of Terms—Read T
Summing Up: A Value Proposition, Not a Sales Gimmick
Lifetime free credit cards offer a genuine value proposition for people who want to minimize credit card costs while enjoying the convenience and benefits of plastic money. They are not a marketing gimmick or bait-and-switch tactic. However, you need to assess your spending patterns and card usage before opting for a lifetime free card. If used judiciously and with financial prudence, these cards can help eliminate a common pain point of annual fees.
Reward Points and Cashback Limitations
While most lifetime-free credit cards provide reward points and cashback rewards, these frequently come with stipulations. They may impose a spending cap on rewards, or they may limit cashback to specific products like groceries or gas. People may not always be able to use reward points before they expire because they may have a date when they can no longer be used.
High Interest Rates on Unpaid Balances
Credit card interest rates in India typically range between 36 per cent and 52 per cent per year. If a cardholder has a carry-forward, the cost of interest can cancel out any benefit of not having to pay a fee every year. There are additional charges for delayed payment, hence, cardholders should pay dues in full each month.
While there is an interest-free period of 50 days for purchases, cash withdrawals at ATMs using a credit card incur a transaction fee of 2. 5 per cent to 3. 5 per cent of the amount, along with instant accrual of interest. Similarly, foreign transactions incur forex markup fees of 3 per cent to 3. 5 per cent, thus increasing the cost of shopping abroad.
Late payments get fined between Rs 100 and Rs 1,300, depending on how much is owed, and interest is added to the whole amount that hasn’t been paid. On top of that, different types of fees are subject to an 18% Goods and Services Tax (GST), which makes the costs higher.
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FAQ
Is a lifetime free credit card actually free?
A Lifetime Free Credit Card is more than just another piece of plastic. It’s your ticket to being financially free. This is the best credit card for people who want an easy way to buy things on credit because it doesn’t charge annual fees and comes with a lot of rewards and benefits.
What is the meaning of free for life credit card?
With free for life credit cards, you do not have to pay annual fees, late fee, cash advance fee and more if you meet the minimum spend criteria. You get complimentary access to international airport lounges for you and supplementary card holders.
What are the disadvantages of a lifetime free credit card?
Hidden Fees to Keep an eye on: Even if a credit card is free for life, owners should still be aware of other possible fees. Late payment charges, cash advance fees, foreign transaction fees, and over-limit fees still apply to most no-fee cards. Some banks also impose tighter inactivity conditions on free cards.
What are the benefits of one card lifetime free?
What are the benefits of using the lifetime free One Credit Card? The lifetime free One Credit Card comes with great features like Offers around you, 5X rewards multiplier, low forex, easy EMIs, etc. It’s also a tech-powered card that can be fully controlled using the OneCard app.