During the festival season, HDFC Bank offers No Annual Fee Credit Cards. Details here

HDFC Bank is offering some of its popular credit cards without any annual fee 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, only the annual fee/joining fee is waived, and the card being completely free depends solely on your spending. So, read the fine print (terms and conditions) before availing the offer. If you don’t spend the specified amount annually on the card, you will be charged an extension fee and other fees. Here are some details to keep in mind when applying for credit cards that don’t pay off.

What is the annual fee for credit cards?

The annual fee is one of the most important fees charged by card issuing banks, and as the name suggests, it must be paid every year. This is done during customer registration. Card issuers attract customers with many benefits, including waiving 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 meet the conditions, which include a fixed spending limit to be met within a specified time period.

“Technically, the majority credit cards charge an annual fee. But these fees are waived if you use your card regularly and meet the minimum spend. For example, the HDFC Bank Visa Signature Card doesn’t pay an annual fee if you spend ₹15,000 within 90 days from the date of card issue,” HDFC Bank said.

Tata Neu Plus has an annual fee of Rs ₹499 on Tata Neu Infinity recharge ₹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 a fee waiver?

Fee waivers are usually offered to customers with a good credit profile. This includes goodness credit scorelow credit utilization ratio and good repayment history. “If you are a credit-worthy customer, the bank can offer you a Lifetime Free Credit Card, which means no joining fees or annual fees,” HDFC Bank said. Fee waivers are also granted during certain special occasions, including the festival season.

How about lifetime free credit cards?

Although banks offer “lifetime free credit cards”, they are usually limited to a select set of individuals, which include those with a long credit history with the bank, high monthly salary earners, and high net worth individuals. For others, “free” card storage depends entirely on costs threshold determined by the banks.

What are the other fees?

A “lifetime free credit card” or a card with no annual fee doesn’t make it completely free. You will have to pay a fee when you use certain services, such as using cash withdrawals and spending that exceeds your credit limit. In addition, you will have to pay interest, which can be as high as 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 your credit card. For example, if you withdraw cash using your credit card at an ATM, or you spend beyond your credit limit, or you lose your card and want a duplicate card,” said HDFC Bank. “But if you only use your card for online and offline purchases and pay your bills before they’re due, your credit card will be free,” the bank said.

Allirajan M is a journalist with over twenty years of experience. He has worked with several leading media organizations in the country and has written about mutual funds for nearly 16 years.