Lifetime Free Credit Card: Common Myths and Facts

Lifetime-free credit cards may raise some eyebrows, especially around what the term ‘lifetime free’ truly means. Simply put, a lifetime-free credit card is one that doesn’t charge an annual fee for its use. This means you can use the card without worrying about any yearly maintenance costs. However, some misconceptions around these cards might have prevented many from fully exploring their advantages. Let’s break down the myths surrounding lifetime free credit card and uncover the facts.

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Common Myths Around Lifetime-Free Credit Cards

1. Hidden Fees

Many people believe that the absence of an annual fee automatically translates into hidden charges that will offset the waived annual fee. And while it is important to always read the terms and conditions before applying for a credit card, there are no hidden charges associated with lifetime-free credit cards.

2. No Benefits

Many people assume that lifetime-free credit cards offer no other rewards than the waived annual fee. In fact, some of the best lifetime-free credit cards provide tremendous value in the form of cashback, reward points, and discounts, on par with paid credit cards.

3. High Interest Rates

Some perceive that lifetime-free credit cards have exorbitant interest rates to compensate for the lack of a credit card annual fee. The rates vary across banks, but they are not necessarily higher just because the card has no annual fee.

4. Meant for Low-Income Individuals

There is a notion that premium cards are tied to high incomes, while lifetime-free credit cards are for those who cannot afford annual fees. However, these cards are designed for a broad range of customers, including those with strong credit profiles who seek value without paying extra fees.

5. Low Credit Limits

Another myth is that lifetime-free credit cards have low credit limits. This is not true as credit limits are solely based on the cardholder’s income and creditworthiness.

6. Impact on Credit Score

It is often believed that lifetime-free credit cards don’t impact your credit score, but that’s not the case. Your credit score depends solely on the responsible use of your credit card, including ones with no annual fees.

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What Do the Best Lifetime Free Credit Cards Offer?

Now that we have cleared the air on lifetime-free credit cards, let’s see what they can do for you:

1. Cost Savings

You end up saving a lot of money over time when you do not pay an annual fee. Annually fees typically range anywhere from ₹499 to ₹60,000, depending on the card.

2. Benefits

Several lifetime-free credit cards, such as the One Credit Card, help you earn points or miles redeemed for travel, merchandise, or gift cards, along with perks like cashback, airport lounge access, etc.

3. Build Credit

You can improve your score positively with consistent and on-time credit card payments. A good credit history can help you secure a loan with ease.

4. Convenience

India is moving towards becoming a cashless economy. A credit card enables you to pay at places that do not accept any cash. You can pay seamlessly with contactless technology. Many cards like One Credit Card let you control your card through an app and consequently enhance your experience.

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Conclusion

Lifetime-free credit cards are a valuable tool to manage your finances. It is important to not give in to rumours and compromise on your financial needs due to them. It’s prudent to compare different cards to make an informed decision. One Credit Card is a strong contender if you are looking for a card with no annual fees. Furthermore, there is no charge to obtain the card or redeem the reward points on it.

FAQ

1. What is a lifetime-free credit card, and how is it different from a regular credit card?

A lifetime-free credit card does not charge an annual fee for its use, unlike most regular credit cards. You can enjoy its benefits without worrying about recurring charges.

2. Are there any hidden fees with lifetime-free credit cards?

No, lifetime-free credit cards typically don’t have hidden fees. However, standard fees like late payment charges or over-limit fees may apply if you misuse the card.

3. Do lifetime-free credit cards have lower credit limits or higher interest rates?

No, the credit limit depends on your income and creditworthiness, not the absence of an annual fee. Interest rates vary across cards but aren’t necessarily higher for lifetime-free options.

4. Can a lifetime-free credit card help build my credit score?

Absolutely. Using the card responsibly by making timely payments and keeping your credit utilisation low can positively impact your credit score.