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Should you opt for a lifetime free credit card?

Lifetime free credit card indicates to a financial tool that does not charge a cardholder the annual fee. You can easily utilize such cards till its credit limit, as many times in a calendar year, without paying any fee. Whereas some financial institutions offer fee waiver only when a cardholder reaches a particular spending threshold, free cards do not limit you with such clauses.

There are several financial institutions that offer lifetime free cards to eligible individuals. However, a thorough credit card comparison is required before you apply for the same.  

Several companies offer some form of a clause with their products that prevent cardholders from utilizing the full benefit of such a product. Also, a few free credit cards only waive the annual fee for the first year. Cardholders will be subject to the charge from the next year onward. 

How to choose the best credit card?

If you are looking for the right credit card for you, it is important to consider all the terms and conditions offered, instead of merely choosing a free credit card. Carefully weigh in the benefits and features offered by some of the best credit cards available in India, and consider whether paying some fees and charges bring you more benefits or not.

Let’s make a quick credit card comparison and see why a feature-rich credit card might be a better option than a free card.

 

  • Rewards and perks – 

 

Most financial institutions pack some form of customer loyalty benefits with their credit cards, allowing cardholders to gain rewards and benefits against their purchases. You can enjoy a large number of reward points when you sign up and accumulate more points for the amount you transact through the credit card. These points can later be redeemed against gift vouchers, discounts, complimentary services, etc.

For example, the RBL Bank SuperCard offers a lucrative sign-up bonus, along with milestone bonus and accelerated rewards. Cardholders can get complimentary airport lounge access, complimentary movie tickets, and similar gifts as well.

It also provides pre-approved offers for their existing customers, simplifying the application procedure and helping save time. Such offers are available on credit cards, personal loans, business loans, and several other financial products. You can check your pre-approved offer by simply sharing some details online. 

 

  • Security – 

 

Almost every credit card offers robust security features, like zero fraud liability cover and other features to prevent online data theft. Ensure your preferred free credit card comes with similar features so that you do not get subjected to any unauthorised transactions. 

You can also go through online reviews to check whether a particular organisation has prompt grievance management systems in place or not. It will prove important in case you face any inconvenience or disputes while using your credit card.

 

  • Emergency personal loan facility – 

 

Carefully weigh in other features, like the provision to avail an emergency loan, while choosing a particular credit card. 

An emergency personal loan against a credit card can prove to be a convenient option as it does not require lengthy paperwork like an unsecured loan. Lenders may also offer an interest-free period, which can prove beneficial if you borrow a larger amount. 

With such a feature, you can convert your credit limit into an emergency loan and mitigate your financial requirements in an emergency. 

These are some of the important things to know before applying for a credit card. It is always recommended to perform a thorough comparison, instead of merely choosing a free credit card, as financial institutions often add perks that can outweigh annual and joining fees.

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