HDFC Bank is offering some of its popular credit cards without annual fees or other charges during the festival season. The offer is valid till December 31 for Swiggy HDFC Bank Credit Card, Tata Neu Plus HDFC Bank Credit Card, Tata Neu Infinity HDFC Bank Credit Card and till October 31 for Freedom Credit Card and BizFirst Credit Card.
But remember that only the annual/membership fees are waived and making the card completely free depends entirely on your spending. So read the fine print (terms and conditions) before accepting the offer. If you do not spend the stated amount on the card annually, you will be charged a renewal fee and you will also be required to pay other fees. Here are some details to consider when applying for fee waiver credit cards.
What is the annual fee for credit cards?
The annual fee is one of the main fees charged by card issuing banks and as the name suggests, it must be paid every year. This happens during customer onboarding. Card issuers lure customers with a host of benefits, including waiver of the annual fee at the time of joining. But the catch is that you won’t be able to enjoy the benefits if you don’t adhere to the terms and conditions, which include a fixed spending limit that must be met within the specified period.
“Technically, most credit cards charge an annual fee. But these fees are waived if you use your card regularly and achieve a minimum spend. For example, the HDFC Bank Visa Signature Card waives the annual fee when you spend money ₹15,000 in 90 days from the date of issuance of the card,” HDFC Bank said.
Tata Neu Plus has an annual fee of ₹499 while Tata Neu Infinity recharges ₹1499 for the same. The annual fee for Swiggy HDFC Bank Credit Card, Freedom HDFC Bank Credit Card and BizFirst Card is ₹500.
Who is eligible for fee waivers?
Customers with a good credit profile usually receive fee waivers. This includes a good credit score, a low credit utilization ratio, and a good repayment record. “If you are a creditworthy customer, the bank can offer you a lifetime free credit card, which means you don’t have to pay any membership or annual fees,” HDFC Bank said. Fee waivers are also granted during certain special occasions, including festival season.
What about lifetime free credit cards?
Although banks offer “free credit cards for life,” these are typically limited to a select group of individuals, including those with a long credit history with the bank, those with high monthly salaries, and high-net-worth individuals. For others, keeping the card ‘free’ depends entirely on the spending threshold outlined by the banks.
What are the other costs?
A ‘lifetime free credit card’ or a card with no annual fees does not mean it is completely free. You’ll have to pay fees if you use certain services, such as withdrawing cash and spending over your credit limit. In addition, you will have to pay interest charges of up to 3.75% per month if you do not pay the entire credit card bill by the due date.
“There are fees you may have to pay depending on how you use the credit card. For example, if you withdraw cash using a credit card from an ATM or if you exceed your credit limit, or if you lose your card and want a duplicate issued,” HDFC Bank said. “But if you only use your card for online and offline purchases and pay your bills before the due date, your credit card is free,” the bank said.
Allirajan M is a journalist with more than twenty years of experience. He has worked with several leading media organizations in the country and has been writing about mutual funds for almost sixteen years.
