Pros And Cons Of LTF Credit Cards

 

Since lifetime-free credit cards never impose the customary yearly fee, they are typically the most widely used credit cards. The LTF credit cards have no initiation or yearly charge. The suitable person for these no-fee credit cards are newcomers or first-time cardholders who have recently started their careers or haven't used credit before. Cards that are lifetime free are also a good option for people who don't wish to pay a charge on the card.

PROS OF LTF CREDIT CARDS:

• No joining or yearly fee: 

The majority of credit cards basically have a yearly fee. However, when you utilize your card frequently and meet the required expenditure, these fees are exempted. Lifetime free credit cards give their users the sole benefit of zero annual fees and joining fees without having to fulfill any minimum requirement criteria.

• Joining benefits:

If the zero joining or annual fee is not enough to attract users, some Lifetime Free credit cards also offer welcome incentives and joining bonuses, like free memberships and subscriptions, bonus reward points, gift cards of different partner brands, etc.

 

• Instant approval:

Often these free credit cards have modest minimum income criteria, and other criteria for qualifying are generally not too complicated. Just because of that, users can anticipate a speedy application acceptance and card issuance.

• Credit score:

Since Lifetime free credit cards are free and have nil joining or yearly fees, they can help users who are struggling with a low or bad credit score or even people who are just looking to start on their credit score journey. Because LTF cards are free users don’t have to pay any extra amount to the issuers in the initial stage or at the end of each year instead, they can turn all their focus on paying their monthly due amount, and therefore, improve/build their credit score.

Also Checkout: Best Rewards Credit Cards in India 2022

CONS OF LTF CREDIT CARDS:

• Rewards:

Even though users have the advantage of not paying a joining or annual fee for a lifetime free credit card, the rewards and cashback deals offered are generally not that attractive when compared to the credit cards that require users to pay some annual or joining fee.

• May discontinue the card:

Occasionally lifetime free credit cards are discontinued if the credit card issuers begin to lose money on them. The advantages you were receiving from the card in this situation will likewise disappear.

• Not a very appealing welcome bonus:

Naturally, if the company is providing a free credit card, it must make a compromise somewhere, and that usually occurs in the initial perks they provide to users. A fee-free card will provide a lower welcome bonus than a comparable card that charges some fee.

• Terms can change:

A lifelong free credit card could seem tempting initially, however, its benefits might not continue forever. In the future, the card issuer may modify the conditions or perks associated with the card. Users are urged to carefully examine the terms and conditions.

BOTTOM LINE:

Despite appearing to be free, lifetime-free credit cards typically have few perks and a lower bonus percentage. Several credit cards charge a yearly fee but concentrate on one or perhaps more areas and have a stronger bonus plan. To determine whether the yearly fee is appropriate, it's critical to compare the cost of the advantages provided to the yearly fee. 

Additional Reading: HDFC Freedom Credit Card Vs Regalia First Credit Card