Past surveys have suggested Indian populace to be quite fascinated with credit card use, estimating roughly 93% of its users actively using cards for purchase, both online and offline. This number is complemented by the fact that an estimated 90% of its users are free credit cards aware and conservative, with approximately 92% of its users clearing more than minimum due.
With the rise in its number of users, financial institutions have also introduced free credit cards. Characteristically coming with no annual charges, there are quite a few features which are unique to these cards.
Potential applicants should check these features discussed below while applying for such a card –
- Zero additional charges: The foremost identity of a lifetime free credit card is that it has no additional charges on it. This does not just include annual renewal charges, but also that of its initial joining fee. However, it is important to note that users are subjected to penalty charges on such credit cards if they fail to clear their minimum due on time.
- Credit building: Like its conventional counterparts, a free credit card also helps its users with credit building. Notably, since these credit cards come with zero additional charges, users can be expected to be cautious to avoid any risk of late fees. As a result, typically these credit cards are well maintained and therefore, generally improve users’ credit score.
- Rewards and offers: Like any other credit card, these cards also offer rewards and offers. Typically, accumulated reward points can be redeemed for gifts or cashback; a feature which should be checked before application. Potential users should also learn how to redeem their credit card reward points.
- High-value purchase: Another advantage offered by a lifetime free credit card is that of high-value purchases, which can be divided into EMIs and repaid over a few months.
Things to keep in mind
Along with these features discussed above, users about to apply for such credit cards should also keep these factors in mind –
- Features and benefits: Usually, these credit cards do not provide attractive features and benefits like other credit cards. The offers are only limited to reward points and fuel surcharge waiver.
For lucrative benefits, individuals can opt for credit cards like the Bajaj Finserv RBL Bank SuperCard. Along with high reward points and fuel surcharge waiver, this card also offers complimentary airport lounge accesses, discounts on movie tickets, and more.
- Terms and conditions: It is vital to check the terms and conditions since these credit cards are sometimes restricted to specific uses. Additionally, these terms also mention any additional charge that might be levied.
- Discontinuation: These credit cards can be discontinued if a financial institution is incurring loss though, under such circumstances, users are duly notified.
If you are looking for how to apply for a credit card then its process is quite easy, applicants must arrange every necessary document from before. This generally includes KYC documents along with PAN card details, as well as those of financial and employment credentials.
- Applicants should visit the official website of the credit card company.
- After selecting the option for credit card application, they should fill in its relevant form.
- Once prompted, applicants must also submit their documents. These are often collected by representatives from the financial institution where an individual has applied.
Potential users should note that it is imperative that they clear their credit card bills on time. Missing out on due dates does not simply impact an individual’s credit card bill with additional penalty charges, it also impacts his/her credit score. Cardholders should use their credit card wisely to avoid building an unmanageable debt.