Life Time Free Credit Cards Aren't FREE!
Hello!
By now, I trust that most of you understand that credit cards aren’t bad at all, if you know how to use them. But a lil birdie tells me that some of you are loading up on credit cards with varying benefits just because they are FREE! So, tell me:
What I was up to: It was my birthday last week, so I traveled to Kerala to celebrate with friends! I was inspired by that banger start and kept it going by recording a very uniquely insightful podcast with Aprajita Toor. She is a designer and an entrepreneur celebrated for her innovative approach to footwear, blending traditional Indian craftsmanship with contemporary design.
In the latest episode of Happy Hour with FinCocktail, we discussed the importance of finding your footing—literally and figuratively. We delved into Aprajita’s early inspirations, the role of finances in building a sustainable business, and how womenpreneurs can navigate the balancing act between creativity and commerce, you can watch the episode here:
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Market ka haal: It’s been a rough few days for the Indian markets! 😬 Yesterday, Sensex slipped by over 1,000 points, while Nifty slid below the 24,000 mark. That’s four straight days of losses for benchmark indices, and the mood isn’t getting any cheerier.
Behind the tumble is the US Federal Reserve cutting interest rates by 25 basis points for the third time in a row. While everyone saw it coming, the Fed’s meh outlook on future cuts killed the party vibes for a year-end rally. 🥴
Adding fuel to the fire, Foreign Portfolio Investors (FPIs) pulled out ₹1,316.81 crore from Indian equities on Wednesday. A stronger US dollar and rising bond yields are making emerging markets like ours less appealing, leading to these capital outflows. 💸
Weak domestic data added more selling pressure. To top it all off, the rupee is feeling the heat and could weaken further against the dollar, which doesn’t help the attractiveness of Indian assets. 🤦♂️ Markets remain jittery, so brace for turbulence until global cues settle and some optimism kicks in! 💪
Humara Gyaan: We all love the sound of “free,” don’t we? A lifetime free credit card almost sounds like an unmissable deal that lures even the most skeptical among us, promising a no-strings-attached escape from annual fees. But dig a little deeper, and you’ll find that this offer has all the permanence of a soap bubble. If your shiny, supposedly cost-free card has been languishing in your wallet, unused and unloved, you might be in for an unpleasant surprise.
1. The Catch: Inactivity Fees in Disguise
“Free forever” often comes with strings attached. Many banks impose inactivity fees if your card sits idle for too long. A card gathering dust in your wallet is no good to them, so they make you pay for it. This sneaky penalty can quickly turn your no-cost card into an unexpected expense.
2. Minimum Spend Clauses
There’s often an unspoken expectation of minimum annual turnover—usually starting at ₹50,000. Falling below this threshold can trigger additional inactivity charges, making the “free” tag even more misleading.
3. Why Banks Do This
Banks rely on credit cards for steady revenue through merchant fees, interest charges, and cross-selling. A dormant card is a liability, not an asset. Inactivity fees and spend thresholds ensure they’re still profiting, whether or not you use the card.
Like what you’re reading? Please share this with your friends and have them sign up too!
“Lifetime free” is rarely what it seems. The devil is in the details, and so is your financial peace. nothing worth having is truly free because hidden costs can lurk in even the most appealing promises. Whether it’s a “lifetime free” credit card or a buy one get one offer, you’re always paying for what you get, one way or another!✨
Here’s to seeing the fineprint and the bigger picture🍻
Niyati❤️
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