Having no credit history can leave you distressed when it comes to applying for a credit card for the first time. Almost every credit card issuer asks for a credit score between 700-750 which is considered to be a good credit score. Hold on, seeing the need of the public the credit card issuers had brought another line of lifetime free credit cards which are ideal for those who do not have any credit score.
Hearing the term lifetime free credit card must have left you with questions like what are lifetime free credit cards? How do they work? Are they any different from the other credit card? Well, you need not worry, because in this article we have covered everything about the lifetime free credit cards that you need to know. Keep reading, to begin with, your research.
What is a lifetime free credit card?
As the name suggests these credit cards are completely free. There is no joining and renewal fee on these credit cards. You can enjoy all the benefits and features free of cost on these credit cards. However, you certainly get limited benefits on lifetime free credit cards. These credit cards are typically for meeting the shopping needs of the customers. You still get to enjoy other benefits like dining benefits, movie benefits, etc. Some of the top lifetime free credit cards are Amazon Pay ICICI Bank Credit Card, Flipkart Axis Bank Credit Card, HSBC Cashback Credit Card, etc. These credit cards come in two variants a cashback-based credit card and a reward point-based credit card. You can choose as per your requirement.
Features and Benefits of lifetime free credit card:
Some of the highlights of the lifetime free credit card are as follows:
- No joining and renewal fee: Avail this credit card at zero charges. You are not required to pay any fee at the time of applying for a credit card as well as at the time of credit card renewal. You can enjoy all the features and benefits of it without having to worry about the payment of membership fees.
- Earn rewards: With lifetime free credit cards you easily earn reward points or cashbacks on the transactions. However, you can only earn the rewards when you use the credit card only for those transactions that let you earn rewards.
- Build Credit Score: You do not have to worry whether you have a poor credit score or no credit history at all. With a lifetime free credit card you can easily work on your credit score, you can improve or build your credit score from the scratch. This is one of the biggest reasons for having a lifetime free credit card.
- Easy EMIs: You get to enjoy the easy EMI facility on the credit cards. With this credit card, you can easily convert your big spendings into small EMIs, which gives your financial room to breathe.
What is the eligibility to apply for a lifetime free credit card?
Now coming to the main aspect, what are the eligibility requirements when it comes to applying for a lifetime free credit card. For getting a lifetime free credit card you need to meet the minimum age requirement, minimum income requirement, identity proof, or any other important documents for the purpose of verification.
After scrutinizing and verifying all the documents you will be notified about the same on your registered mobile number whether your application has been approved or not. If your application git rejected kindly wait for a minimum of 6 months to reapply, in the meantime you can work on improving your eligibility requirements.
Things to watch out for in a lifetime free credit card:
While applying for a lifetime free credit card you need to watch out for certain things:
- Discontinuation: The most possible disadvantage you get with the lifetime free credit card is that it can get discontinued. The credit card issuers can start charging joining and annual fees from the new customers who are applying for these credit cards if the advantage of lifetime free is removed.
- Changing terms: Credit card issuers have the sole right to change the terms and policies on their credit cards. These changing terms can cause problematic situation for you so, try to watch out for them.
- Hidden Charges: Before applying for a credit card you need to be aware of the hidden charges on your credit card. This should not be the case if you have applied for a lifetime free credit card but the hidden charges on it are so high that it cost you a fortune. So, keep in mind to read the most important terms and conditions to know more about the hidden charges on your credit card.
Why you should get a lifetime free credit card?
Let us breakdown these information into simpler form if you are still thinking about whether you should get a lifetime free credit card or not. First and foremost thing, you can easily build your credit score with this credit card even if you have no credit history. Secondly, you get to earn rewards on your spendings either in the form of reward points or in the form of cashback depending on which credit card you have. You do not have to worry about paying the membership fees as they are absolutely free.
Now, to make the most out of your credit card you need to understand few things. One, you need to pay your credit card outstandings before or on the due date. Never miss the due date as it can negatively impact your credit score. To avoid this, you can register for the auto-debit services. Second, you need to maintain a low credit utilization ratio. It is advisable to keep the ratio between 30% – 40% in order to build a good credit score. If you are one of those people who overspend then you must set a threshold limit so that on reaching that limit you can stop using your credit card. Using credit card responsibly is the only way to maximizing the benefits of your credit card and building a good standing account. We hope these points must have cleared your mind whether you still want to go for a lifetime free credit card or not.
Bottom Line:
To conclude, it is a great way to start off your credit card journey with a lifetime free credit card. You get to understand the working of a credit card and you get a hang of it. One of the most important step before applying for a credit card is analysing your needs and spending habits and then select the credit cards that compliments them the most. After selecting the cards you need to compare credit cards in order to narrow down your choices to one credit card that has the optimum value to you. Lifetime free credit cards are best to build or improve your credit card. Another important thing that you need to bear in mind is using your credit card responsibly, keeping your credit card dues clear timely, and maintaining a low credit utiliation ratio.
You can share your experience with the lifetime free credit cards in the comment section and do tell us the tips for maximising the benefits of these credit cards.
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