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.
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.
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.
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
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