
The statement means:
- Same Pricing Across Networks: Whether your card is on a Visa, MC, or other network, the pricing will be the same, unless the bank specifically mentions otherwise.
- No Joining/Annual Benefits for LTF Cards: If your card has no joining fee or annual fee, then you won't receive any special joining or annual benefits (like welcome bonuses or rewards).
- No Fees Charged for LTF Cards: If you were issued a lifetime free (LTF) card (no joining/annual fee), no fees will be applied during your statement cycles.
- Possible Future Changes: Although your card is currently LTF, the bank has the right to change its policy and introduce an annual fee in the future. They are required to inform you in advance, as per regulatory guidelines.
Credit card companies are slowly making changes that could impact how we look at "Lifetime Free" (LTF) cards. Over the past few years, we've seen a number of trends that are quietly squeezing more out of cardholders.
- Surcharges on Various Categories:
- Banks are now adding surcharges on transactions like rent payments, government-related spends, and utility bill payments, where they used to be free earlier.
- Banks are now adding surcharges on transactions like rent payments, government-related spends, and utility bill payments, where they used to be free earlier.
- Add-on Fees for Previously Free Services:
- What used to be free add-on cards for family members are now being charged by card issuers. Add-on fees are being applied, even for existing customers who were previously exempt.
- What used to be free add-on cards for family members are now being charged by card issuers. Add-on fees are being applied, even for existing customers who were previously exempt.
- Spend Requirement for Lounge Access:
- Lounge access, which was previously complimentary with premium cards, now often comes with a spend requirement. This means if you donāt meet a minimum spend threshold, you may not qualify for free lounge visits anymore.
- Lounge access, which was previously complimentary with premium cards, now often comes with a spend requirement. This means if you donāt meet a minimum spend threshold, you may not qualify for free lounge visits anymore.
- Spend Requirement for Annual Fee Waivers:
- Cards that offer annual fee waivers based on spends are now excluding certain categories like fuel, utility payments, Insurance, or wallet reloads. This makes it harder for users to meet the spend threshold and get the annual fee waived.
- Cards that offer annual fee waivers based on spends are now excluding certain categories like fuel, utility payments, Insurance, or wallet reloads. This makes it harder for users to meet the spend threshold and get the annual fee waived.
- Subscription-Based Rewards for Specific Categories:
- Cards are shifting towards subscription-based rewards, where additional benefits are only available for based on subscription for those categories. This complicates rewards for users and forces them to track specific subscriptions or offers or spend more.
- Cards are shifting towards subscription-based rewards, where additional benefits are only available for based on subscription for those categories. This complicates rewards for users and forces them to track specific subscriptions or offers or spend more.
- Discontinuing Cards to Promote New Ones:
- Credit card companies are now discontinuing popular cards and pushing users to āupgradeā to newer, often more expensive options. They lure users with added benefits but sneak in higher annual fees and stricter milestone-based waivers.
- Credit card companies are now discontinuing popular cards and pushing users to āupgradeā to newer, often more expensive options. They lure users with added benefits but sneak in higher annual fees and stricter milestone-based waivers.
- Frequent Devaluations:
- Weāre seeing points or rewards get devalued frequently. So, even if youāre spending more, the value you get in return keeps diminishing.
- Weāre seeing points or rewards get devalued frequently. So, even if youāre spending more, the value you get in return keeps diminishing.
- And Nowā¦ LTF Cards Are No Longer LTF
:
- The latest bombshell, and possibly the biggest one for LTF cardholders: ICICI started hinting that they may start charging annual fees on LTF cards, with the necessary intimation.
What Does This Mean for LTF Cardholders?
Gone are the days when LTF was truly lifetime free. If banks like ICICI continue this trend, other issuers might follow suit. Those whoāve relied on getting LTF cards for the long term might have to start paying annual fees, unless the bank decides to retain the benefit.So, if youāre someone who has always aimed for āLifetime Freeā cards, itās time to re-evaluate. It may be smarter to focus on cards with better rewards and benefits, even if they come with a fee, rather than chasing after LTF deals that could lose their advantage in the long run.
Since you have an LTF card (with no joining or annual fee), you're not being charged these fees now. However, the bank reserves the right to introduce an annual fee in the future with this notification, but they must notify you ahead of time if that happens.
What do you think about this shift? Could this be the end of LTF as we know it?
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