When you apply for a credit card, your bank charges you a fee known as the Joining Fee. You will also have to incur a fee for renewing your credit card services, known as the Annual Fee. But, what if I told you there is a way to avoid such expenses? Yes, it sounds bizarre, but lifetime free credit cards offer such benefits.
While applying for a credit card, you can opt for a lifetime free credit card and avail of no Joining Fee and Annual Fee. The best part is that you can get all the other features and benefits of a regular credit card. For instance, you can avail of reward points, cashback, bonuses, etc.
Benefits of Opting For Lifetime Free Credit Cards
Before applying for a lifetime free credit card, it is imperative to weigh all its aspects carefully. Here are the top benefits you can avail of:
Line of credit
Nothing comes for free in this world. Getting any line of credit can cost you money. Credit cards in India do not come for free as well. You would have to incur interest charges and other penalties if you missed your payments. So, it would be wise to carefully time the billing cycle of your lifetime free credit card. This way, you can get the most out of an interest-free period offered by your credit card.
The best thing about using credit cards in India is that they come with numerous reward programs, discounts, etc. For instance, you get a cashback of a certain amount on every transaction you make through your credit card. It allows you to save some extra money. With lifetime free credit cards, you can avail of such benefits without worrying about charges.
Break down expenses
Another benefit of a lifetime free credit card is that it enables you to break down your expenses into affordable EMIs. For instance, you can reduce the financial burden by converting your big purchases into EMIs. Furthermore, when you use your credit card to make large spends, you can reap greater rewards and redeem for gift vouchers, etc.
If you are looking to get loans in the future, you will need to maintain a healthy credit score. A credit card is a great way to build your credit. When you make payment of your lifetime-free credit card bills on time and in full, it positively reflects on your credit score. Make sure to keep your credit utilization ratio below 30% and never miss your repayments while using your credit card.
Like all other credit cards in India, lifetime-free credit cards have revolving credit features. It enables you to roll over the outstanding balances to the next billing cycle and keep your credit limit within normal. It is worth noting that if you roll over your balance to the next month, you will have to incur interest charges daily.
Things To Be Mindful of Before Getting a Lifetime-Free Credit Card
It is crucial to understand that banks upgrade their services from time to time for lifetime-free credit cards. These may or not be compulsory, but they are generally chargeable. Before choosing a lifetime-free credit card, make sure to look for these charges and sign the agreement only when you agree with them.
Lifetime-free credit cards come with several benefits, such as rewards, discounts, cashback, etc. However, keep in mind that these benefits may not last forever. After getting your credit card, your bank may change the terms after some time. So, carefully read the fine print before you agree on anything.
Policy on discontinuation
At times, when your bank starts incurring a loss on your lifetime-free credit card, it may choose to discontinue it. It means that you will no longer be able to avail of benefits. So, before applying for a credit card, make sure to understand your bank’s policy on discontinuation. You must know how to close down your credit card without incurring charges.
Based on the above-said details, you can decide whether or not you would want to opt for a lifetime free credit card. Before applying for a no annual fee credit card, you must understand all the aspects of it. Furthermore, check your credit score and income to know whether or not you are eligible to even apply for a lifetime free credit card.