HDFC Bank offers credit cards without annual fee during festival season. 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 do remember that only the annual/joining fee is being waived and making the card totally free of charges depends entirely on your spending. So, read the fine print (terms and conditions) before you grab the offer. If you do not spend the specified amount annually under the card, you would be levied a renewal fee and have to pay other charges also. Here are some of the details that you should keep in mind while applying for credit cards that come with fee waivers.

What is the annual fee in credit cards?

The annual fee is one of the most important charges levied by card issuing banks and as the name suggests it has to be paid every year. It is done while onboarding customers. Card issuers woo customers with a host of benefits including waiver of the annual fee at the joining time. But the catch is that you would not be able to enjoy the benefits if you do not follow the conditions that include a fixed spending limit that has to be met within the specified timeframe.

“Technically, most credit cards charge an annual fee. But these fees are waived off if you use your card regularly and achieve a minimum spend – for example, theHDFC Bank Visa Signature Cardwill waive off the annual fee if you spend ₹15,000 in 90 days of the card issuing date,” according to HDFC Bank.

Tata Neu Plus has an annual fee of ₹499 while Tata Neu Infinity charges ₹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 waiver?

A fee waiver is usually offered to customers with a good credit profile. This includes a good credit score, low credit utilisation ratio and good repayment record. “If you are a credit-worthy customer, the bank may offer you a lifetime free credit card, which means no joining or annual fees,” HDFC Bank said. Fee waiver is also given during certain special occasions that includes festival season.

How about lifetime free credit cards?

While banks do offer ‘lifetime free credit cards’, they are usually restricted to a select set of individuals that include persons who have a long credit history with the bank, individuals with a high monthly salary and high net-worth individuals. For others, keeping the card ‘free of charges’ depends entirely on the spending threshold outlined by the banks.

What are the other charges?

A ‘lifetime free credit card’ or a card with no annual fee does not make it entirely free. You will have to pay charges when you use certain services such as using it to withdraw cash and spending beyond your credit limit. Apart from this, you have to pay interest charges that can go up to 3.75% per month if you do not settle the entire credit card bill within the due date.

“There are charges you may have to pay based on how you use the credit card. For example, if you withdraw cash using a credit card at an ATM or you spend over your credit limit, or you lose your card and want a duplicate issued,” according to HDFC Bank. “But if you use your card only for online and offline purchases and settle your bills before the due date, your credit card is free,” the bank said.

Allirajan M is a journalist with over two decades of experience. He has worked with several leading media organisations in the country and has been writing on mutual funds for nearly 16 years.