You see an advertisem*nt promoting a ‘lifetime free Credit Card’, and you wonder what the catch is. Are Credit Cards free? If they are, why do banks take the trouble of issuing them?
Whether you pay anything for your Credit Cards or not depends on how you use the Credit Card? In fact, if you use it prudently and smartly, a Credit Card can help you reap many benefits such as rewards, cash backs and discounts.
First, let’s look at the typical charges you may have to pay for a Credit Card.
- Annual fees: Technically most Credit Cards charge an annual fee. But these fees are waived off if you use your card regularly and achieve a minimum spend – for example, theHDFC Bank Visa Signature Cardwill waive off the annual fee if you spend Rs 15,000 in 90 days of the card issuing date.
If you are a credit-worthy customer, the bank may offer you a lifetime free Credit Card, which means no joining or annual fees.
However, specialised and co-branded cards such as theHDFC Bank JetPrivilege Signature Carddo charge an annual fee, but they more than compensate you with welcome bonuses, complimentary lounge access and priority check-ins.
- Finance charges: This is the interest the bank charges if you settle your outstanding Credit Card bills after the statement due date. Your Credit Card gives you 25 to 50 days of interest-free credit. If you settle your Credit Card bill on or before your due date, you won’t have to pay any finance charges.
- Other charges: There are charges you may have to pay based on how you use the Credit Card. For example, if you withdraw cash using a Credit Card at an ATM or you spend over your credit limit, or you lose your card and want a duplicate issued. But if you use your card only for online and offline purchases and settle your bills before due date, your Credit Card is free.
If lifetime free Credit Cards come without charges, how do banks earn money from the service? A major portion of Credit Card revenue for banks comes from merchant fees – when you buy a product using a Credit Card, a percentage of its value goes to the card-issuing bank.
So, yes, a Credit Card can be free if you use it smartly.
Are you looking to apply for HDFC Bank Credit Card? Click hereto know more!
* Terms & conditions apply. Credit Card approvals are at sole discretion of HDFC Bank Ltd
FAQs
No, there won't be any fees or charges if you doesn't use it but it will surely impact your credit score. It would be best if you keeps using it for some purchases as credit card always have a lot of benefits than debit cards. One, usually there is no truly lifetime free credit card.
What's the catch in Lifetime free credit card? ›
A lifetime free credit card works just like any other credit card. If you do not pay your bill on time, then the bank will charge you a late fee. If you still do not pay the credit card bill on time, then the bank deactivates your card due to which your credit score suffers.
Are lifetime credit cards really free? ›
A lifetime free credit card is precisely what its name suggests – a credit card that comes with no annual fee for its entire lifetime. Unlike traditional. Cost Savings: The most apparent benefit is the elimination of annual fees, saving you money over the long term.
Which bank approves a credit card easily? ›
Comparing the easiest cards to get
| Card Name | Annual fee | FICO score required |
|---|
| Bank of America® Unlimited Cash Rewards Secured credit card | $0 | No credit history |
| Capital One Platinum Secured Credit Card | $0 | No credit history |
| Indigo® Mastercard® | $0-$99 depending on creditworthiness | 300 to 670 |
| Capital One Platinum Credit Card | $0 | 580 to 740 |
3 more rowsJun 28, 2024
Easy Credit Card: A Contactless Credit Card | Bank of Baroda.
What is a ghost credit card? ›
A ghost card is a type of credit or debit card that allows you to assign different card numbers to different departments within your organization. The individual numbers allow the departments to make authorized purchases for your company, but the numbers themselves are not usable by either internal or external thieves.
Which is the best credit card with no annual fee? ›
IDFC FIRST Millennia Credit Card is one of the best credit cards with zero annual fee that comes with a good rewards rate. With this card, you can earn up to 10X reward points on select purchases. Also, you can earn better reward points if you frequently shop online.
Is there an infinite credit card? ›
A Visa Infinite® Credit card comes with Visa Infinite® level benefits and gives you an easy and secure way to pay. Quickly compare Visa Infinite® cards to see interest rates, annual fees, rewards, benefits and much more.
What is the biggest credit card trap for most people? ›
The minimum payment mindset
Here's how it usually happens: You use your card for a purchase you can't really afford, or you want to defer paying for it from your savings. When your credit card bill arrives, you either choose to make just the minimum payment or it is all you can afford to pay at the time.
What are the disadvantages of a lifetime free credit card? ›
Disadvantages of Lifetime Free Credit Cards
The reward rates might be lower, and there may be fewer opportunities for earning bonus points. Additionally, the perks such as travel insurance, concierge services, and access to airport lounges are typically not available with these cards.
IndusInd Bank Grandé World Debit Card - Free for Life.
Which bank gives free credit cards? ›
With ICICI Bank No Annual Fee Credit Card, you need not worry about paying card fees as there are no joining and annual fees.
Do free credit cards exist? ›
If you are a credit-worthy customer, the bank may offer you a lifetime free Credit Card, which means no joining or annual fees.
Is there such thing as a free credit card? ›
All of the major credit card companies give free credit cards, including Capital One, Bank of America, Chase, and Citibank. Free credit cards are cards with no annual fees, no monthly fees, and no one-time fees for application processing, so you only need to pay for the purchases you make.
What credit card has no annual fee for seniors? ›
The best credit cards for seniors are the AARP Rewards Credit Card and the AARP Travel Rewards Credit Card from Barclays. Both have $0 annual fees. The AARP Rewards Credit Card gives 3% cash back on gas and drug store purchases, 2% on medical expenses and 1% on all other purchases.
How to get a credit card with no money? ›
No, you cannot get a credit card with no money because the law requires credit card issuers to verify that applicants have the ability to make monthly payments before approving them for an account. Still, you may be able to get a credit card without a paycheck from a job if you have reasonable access to other income.
Which is the best credit card for free? ›
IDFC FIRST Millennia Credit Card is one of the best credit cards with zero annual fee that comes with a good rewards rate. With this card, you can earn up to 10X reward points on select purchases. Also, you can earn better reward points if you frequently shop online.
