Finance

The Truth about Lifetime Free Credit Cards

Credit cards in today’s market are available with several exciting offers and benefits. One of those exciting benefits is the ‘Lifetime Free’ credit. Obviously, you think that in case of these life-time free credit cards there is no annual fee that you would be required to pay for the rest of your life. However, the real fact is about them is that they are actually not free for life.

Reasons why Lifetime Free credit card is not Free for Life

1. Discontinued Card: Every credit card availed has a limited period of validity. This is because most banks actually discontinue their cred card in 3-5 years. A prime example in this regard is the HDFC platinum credit card which was replaced with an HDFC moneyback credit card as the old card got expired.

In situations of a discontinued card, the new one may be life-time free and maybe not. It is possible that it is free for just one year, and it may not even have the same benefits. Sometimes the new benefits are better while most times they are not.

2. Changing Benefits: In case you are holding a credit card with good benefits for a couple of years, you must have noticed that its benefits may have been changed. Credit cards get devalued in 3-5 years, mostly because of the decline in card issuance. This decline is a result of the change in the needs of people and their credit card usage patterns. Banks regularly assess whether they are not running in loss because of changes in market dynamics and consumer patterns.

3. Upgrades are Crucial: For instance, you have got a life-time free credit card, i.e., Yesbank Preferred Card, but sticking to it for life is a no-good choice. Instead, to enjoy maximum benefits, you need to upgrade to Yes Exclusive variant. When you upgrade its not necessary that you will get a life-time free offer on that card. Besides, new cards are often introduced with more benefits considering the stiff competition in the credit card market among banks.

The above points are crucial for anyone who avails a Life-time free credit card. However, there are situations when Life-time free credit card is the best option.

Reasons why you may opt for a Lifetime Free Credit Card

1. American Express Cards: Most credit cards by American Express do not really have god rewards, but they have some incredible merchant offers which pay back multiple times. Thus, you should probably grab the chance when American Express credit cards are available as Life-time free cards. These cards, after getting devalued in 5 years, would still be available for you to access services and offers throughout your life.

2. Credit Line: Some of you hold a credit card just for a credit line or EMI facility. If this is your case then always be in line with the facility of basic usage and not worry much about benefits.

3. Super Premium Cards: Super-premium cards have great benefits, and if they are offered for free, then you shouldn’t miss it for anything. These cards are not devalued as quickly as others. Very few people get their hands on super-premium cards. Also, those who have managed to grab these super-premium cards are the ones who spend a lot, which gives banks the encouragement to keep the benefits intact.

Remember all the above mentioned points when you go to the market for a Life-time free credit card and make a wise choice.

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