HDFC Bank offers credit cards with no annual fee during the festival season. Details here

HDFC Bank is offering some of its popular credit cards without any annual fees or other charges during the festival season. The offer is valid till December 31st for Swiggy HDFC Bank Credit Card, Tata Neu Plus HDFC Bank Credit Card, Tata Neu Infinity HDFC Bank Credit Card and till October 31st for Freedom Credit Card and BizFirst Credit Card.

But remember, only the annual joining fee is waived, and getting the card completely free depends on your spending. So, read the fine print (terms and conditions) before taking advantage of the offer. If you don’t spend the specified amount annually on the card, you’ll be charged a renewal fee and have to pay other fees. Here are some details to consider when applying for a fee-free credit card.

What are the annual fees 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 onboarding. Card issuers attract customers with a variety of benefits, including waiving the annual joining fee. But the catch is that you will not be able to avail the benefits unless you comply with the terms and conditions, which include a fixed spending limit that must be met within a certain period of time.

“Technically most credit cards charge an annual fee. But these fees are waived if you use your card regularly and reach minimum spending – for example, the HDFC Bank Visa Signature Card waives the annual fee if you spend ₹15,000 within 90 days from the date of card issue,” HDFC Bank said.

Tata Neu Plus charges an annual fee of ₹499 while Tata Neu Infinity is charging ₹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 duty exemption?

Fee waivers are typically offered to customers with a good credit history. This includes good credit ratinglow credit utilization ratio and good repayment rates. “If you are a creditworthy customer, the bank can offer you a lifetime free credit card, which means no introductory or annual fees,” HDFC Bank said. Fee waiver is also available in some special occasions including festival season.

How about free credit cards for life?

While banks do offer “lifetime free credit cards,” they are usually limited to a select group of people, which includes those with a long credit history with the bank, those with high monthly salaries, and wealthy individuals. For others, keeping the card “free” is entirely dependent on expenses threshold set by banks.

What are the other charges?

A “lifetime free credit card” or a card with no annual fee does not make it completely free. You will have to pay a fee when you use certain services, such as for cash withdrawals and expenses that exceed your credit limit. On top of this, you’ll have to pay interest, which can be as high as 3.75% per month if you don’t pay your entire credit card bill by the due date.

“You may have to pay a fee depending on how you use your credit card. For example, if you withdraw cash using a credit card from an ATM, spend over your credit limit, or lose your card and want a duplicate,” says HDFC Bank. “But if you use your card only 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 of the country’s leading media organizations and has reported on mutual funds for nearly 16 years.