2 min read
25 May 2021

Apart from the interest rate on a credit card, there are also other additional charges that you may incur when you apply for and maintain a credit card. While you may have to pay late payment fees on most credit cards, be it an airline credit card or a student credit card, you have a choice to avoid the annual maintenance charge on a credit card. You can do this by choosing a credit card that comes with zero annual fees.

While there are plenty of credit cards without annual fees in the market, take a moment to think before you apply. As a credit card is a tool that can work to your advantage or disadvantage based on its features and your usage, first consider whether this kind of credit card will be ideal for you. To do this, look at the benefits and drawbacks of credit cards without annual fees.

Additional Read: Things to know before applying for credit card

Benefits of owning a Credit Card without annual fees

Just like the regular variants, credit cards without annual fees also offer rewards and other perks. Without having to pay the annual maintenance charge, you can essentially get these benefits for free. Though the rewards and points on a regular credit card may be higher, you can enjoy saving even with credit cards without annual fees.

To do this, compare the features offered by various credit card companies. When you do this, make sure you read the fine print. You may discover, for instance, that you need to spend a higher minimum amount during a specific period in order to enjoy a waiver on annual charges. So, estimate your credit card usage before you sign up. Secondly, some cards come with only the first year’s annual fees waived off like the Bajaj Finserv RBL Bank Platinum Choice First Year Free SuperCard, which can also help you save substantially. Knowing these terms can help you leverage the best credit cards without annual fees with ease.

Additional Read: How to check credit card balance

The setbacks of owning a credit card without annual fees

Owing to the fact that credit cards without annual fees are basically lifetime free credit cards, it is possible for the issuer to discontinue the card if they aren’t profiting from this financial product. Further, some of these credit cards come with hidden clauses in the fine print, allowing the issuer to change the terms and conditions for the financial product. In this case, your credit card annual fees may not always be waived off.

You also need to watch out for the asterisk near the benefits and features that may have hidden terms applicable to the benefits you wish to use to your advantage. For instance, a credit card without annual fees may state you get Rs. 3,000 off on flight bookings. However, the asterisk may specify that you get Rs. 3,000 off on a flight booking only if your total expense exceeds Rs. 10,000. In this case, you will be spending more only to make use of the offers, which doesn’t translate to savings in the long term.

The ideal choice

While your ideal credit card choice may depend on your unique financial profile, existing debt, credit score, credit card eligibility, and other factors, consider choosing a credit card you can bank on. Credit cards without annual fees may not always be the best way to save. You may end up saving more with a regular credit card if you choose one that complements your spending patterns. For instance, the Bajaj Finserv RBL Bank SuperCard offers annual savings of up to Rs. 55,000. You can also withdraw cash from an ATM and pay no interest on it for up to 50 days!

Additional Read: Tips to get the most out of your Credit Card

What’s more, you can get a personal loan that remains interest-free for a period of 90 days. Imagine the savings you can enjoy from just reducing the interest expenses you pay! Manage your credit card swiftly and conveniently with the RBL MyCard app and break down heavy purchases above Rs. 3,000 into easy EMIs. All this guarantees for much more savings even while counting the small expense of the most minimal annual and joining fees. You can also choose to get this handy card through a customised deal. All you need to do is check your pre-approved offer to enjoy up to 20,000 welcome reward points without worring about meeting the credit card eligibility criteria.

Even if you choose to have a credit card with zero annual maintenance fees, maintain another regular credit card, one that you can bank on in times of need, to secure yourself financially.

Additional Read: Kisan credit card
 

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