Credit Cards are widely used financial tools which are used to increase the financial stability of an individual. Credit Card is also a remarkable way of getting rewards on your every purchase and is an excellent way of building credit. There are many features and benefits which credit cards provide differently according to their type and bank.

Almost every credit card comes with an annual fee which is pretty irritating to remember to begin with. This fee can be different from card to card. There are also a number of credit cards that are lifetime free or do not have any joining or annual fees. Since the competition in the market is pretty tough, it is important to note that even credit cards that have an annual fee can be converted into lifetime free credit cards. At least some of them can be.

Advantages of Having a Credit Card with No Annual Fee Post

Credit cards follow two types of programs, which are the lifetime free program and the spend-based waiver program. These two types of programs can help you avoid the annual or renewal charges of your credit card. The annual fee can be discouraging at times which can make the customer lose interest in the card.

No Annual Fee

These types of credit cards do not have any initial amount to be paid for by the applicant. These cards are specifically curated for people who do not wish to pay the annual fee again and again. For example with SBI Unnati Credit Card.

Spend-Based waiver

Here, the annual fee gets waived after spending more than a particular amount. For this type of credit card, the applicant might or might not have to pay, due to the uncertainty of not reaching the milestone. Such as with almost every other credit cards in the market

 The following are the reasons why a customer prefers to have a credit card with no annual fee or fee being waived under spend based program –

Cost saving

The most desired benefit of having a credit card with no annual fee is that it saves money. This annual fee can go from several hundred up to lakhs. Hence, choosing a credit card with no annual fee can help you completely avoid the annual fee.

In case of spend-base waiver programs, you can waive the fee on the basis of your early spending.

Reward Opportunities

A normal credit card with no annual fee offers reward programs that can help you earn different types of rewards including cashback, cash points or miles on your every expense. All these accumulated rewards can be redeemed against a variety of options available. This also includes the website catalog, partnered brands, flight booking and hotel stays, and even the premium memberships for different clubs.

With a credit card with no annual fee, you basically earn a lot of rewards without even paying anything for the same. A few financial institutes also provide all these benefits along with some additional benefits on special occasions with double rewards.

Easy to manage

With no annual fee added to the card, it will be easier to manage the card as compared to the one with the annual fee. These additional charges can make a customer unnecessarily nervous and worried about the same. Not having these types of additional expenses to worry about, you can completely focus on managing the credit card and expenses.

There are many further added benefits which include the welcome gift being present with lower spending, rewards being more valuable than the normal credit cards, etc. These types of credit cards are also easier to get approved from the bank. There are usually no high-level requirements in order to get this type of credit card.

All these are the reasons why user prefers to own a credit card that has no annual fee or either waive the annual charges under milestone benefits or spend-based waiver benefit.


Credit cards are used worldwide, but being a very useful tool user finds the applied joining or renewal fee to the card a nuisance. When it comes to these types of issues to the customers, bank released cards that are lifetime free and also added schemes such as milestone benefits and spend-based waivers.
These both programs help the user avoid the annual fee and still be able to receive the utmost benefits of their credit card. Which type of credit card is better for can only be determined after a thorough look at your expense details. You will have to make this choice wisely in order to avail the best benefits available with the credit card.

Write A Comment