You may be charged a joining or annual fee when you get a credit card. Some card issuers offer credit cards without these annual charges. Such cards are known as lifetime-free credit cards.
While these cards offer a plethora of rewards and cashback offers, one question you need to ask is if they are actually free. Or does it have hidden charges in it? Here’s all that you need to know.
Hidden Charges Associated with Lifetime-Free Credit Cards
While lifetime-free credit cards save you from an annual fee, they can still come with other costs. Here’s a brief overview of these charges.
- Interest Rates
Credit cards come with higher interest rates. If you carry forwards a balance from one month to another, the interest you need to pay tends to outweigh the savings.
- Late Fees
They are levied on all credit cards. If you miss out on a payment date, you pay a late fee. So, it’s ideal to pay your dues on time and in full to avoid paying these huge penalties.
- Foreign Transaction Fees
These fees are inevitable when you plan to travel abroad. Some credit cards do charge extra fees when you swipe the card for international purchases. Be cautious about these fees, as they can overshoot your budget.
- Cash Advance Fees
If you need to withdraw cash from your credit card, you may be surprised at how expensive it can be. An interest is levied from the day you withdraw cash until you repay your bill. This can vary between 17% and 30%, which is higher than the interest levied on regular purchases.
How to Get a Free Credit Card
You can apply for a credit card online once you meet the required eligibility criteria of the issuer. Follow these tips and tricks and opt for the right card.
- Analysis
Do an overall analysis of your spending habits. Consider the eligibility criteria, features, and benefits to find the best fit for your needs. Start by looking into the online portals of banks and financial institutions that provide credit cards with no joining fees.
- Good Credit Score
To get this type of credit card, your CIBIL score must be higher. Aim for a score of 700 or higher. A good credit score boosts your chances of qualifying for a card.
- Income Requirements
Credit card providers require you to meet specific criteria to be eligible for a lifetime-free credit card, and many banks require applicants to meet a certain income level. Ensure your income meets or exceeds the specified criteria.
Credit card companies may offer credit cards with no joining fees, but some issuers start charging annual fees after the initial year of free use. So, you need to consider these factors before opting for a lifetime-free card.
You can opt for the One Credit Card; this lifetime free credit card offers 5X rewards on the top 2 spending categories every month.
Reason to choose the One Credit Card? It takes only minutes to activate this card. You can now save more with air ticket credit card offers from partners like MakeMyTrip, Ixigo, Goibibo, and more, along with a range of other rewards on food and electronics.
This credit card app helps you track your finances and pay your EMIs on the go. This feature is helpful to avoid unmanageable debt and keep track of your credit account. So, why wait? Apply now and enjoy rewards and deals with no annual fees!
Read Also: 5 Surprising Advantages of Using A Credit Card App