Look, I’ve been through the whole credit card confusion. And if you have ever wondered whether to go for a “lifetime free credit card in India” card or pay INR 500 a year. It’s not always about the free tag. Sometimes, that small INR 500 annual fee gives you better perks that free credit cards just don’t give.
I’m not saying every paid card is gold, but many of them offer airport lounge access, better reward points, and exclusive discounts-the kind of stuff that actually makes a difference if you use your card smartly.
And let’s not ignore the fact that credit card usage is booming in India. Over 12 crore people are already using credit cards, and the number is only going up. So choosing the right card today is not just about saving INR 500-it is about building a credit score, enjoying benefits, and getting more out of your spending.
Table of Contents
What is a lifetime free credit card?
A lifetime free credit card has no joining fee and no annual renewal fee ever. It is a popular option for beginners, students, or anyone looking to build their credit score without any financial commitment.
Look at Benefits:
- There are no hidden fees or recurring charges.
- Good option to buit credit history.
- No need high salary, simple approval process.
Look at Limitations:
- Very basic rewards.
- No joining bonus and rarely airport lounge access.
- Not a good option for those who travel or spend frequently.
What Do You Get with an INR 500 Annual Fee Credit Card?
A credit card with INR 500 annual charges usually offers better features. Most banks waive this annual fee if you reach a certain spending milestone, making it virtually free for active users.
Look at Benefits:
- Higher cashback or reward rates than lifetime free credit cards.
- Also comes with airport lounge access, fuel surcharge waivers, and dining offers.
- To waived annual fee need to spend INR 20,000-100,000 per year.
Look at Limitations:
- Some cards do not waive the fee but offer enough rewards or joining bonuses to compensate for the annual cost
Lifetime Free vs INR 500 Fee Cards: Comparison Table
| Feature | Lifetime Free Card | INR 500 Annual Fee Card |
|---|---|---|
| Annual Fee | INR 0 | INR 500 (often waivable) + GST |
| Rewards | Basic | Higher reward/cashback rates |
| Lounge Access | Rare or unavailable | Included in some cards |
| Ideal User | Beginners, low spenders | Moderate spenders, travel-friendly |
| Fee Waiver | Not applicable | Yes, on annual spend milestones |
Lifetime Free Credit Cards (INR 0 annual/joining fee)
| Credit Card | Key Benefits |
|---|---|
| Amazon Pay ICICI Credit Card | Life time free, 5% cashback with Amazone Prime, 3% with non-Prime, 2% on Amazon Pay, 1% flat cashback elsewhere, 1% fuel surcharge waiver |
| IDFC FIRST Millennia Credit Card | Lifetime free, Up to 25% off on movie, INR 500 gift voucher, 1% fuel surcharge waiver 10x reward points: On birthday spend and spend more than INR 20,000 per month) 3x reward points: online and offline transaction (transaction till INR 20,000 per month) 1x reward points: 1RP per INR 150 spend on utility and insurance |
| OneCard (by FPL Technologies) | Lifetime free, 1RP per INR 50 spend, 1% fuel surcharge waiver 1% Forex mark-up fee only |
| RBL Bank BankBazaar SaveMax | 10% off up to INR 100 on BookMyShow 10% cashback up to INR 100 through Zomato 5X reward points on grocery spending, 1 RP on other spens |
Cards with INR 500 Annual Fee
| Credit Card | Important Fee & Key Benefits |
|---|---|
| SBI SimplyCLICK | Joining fee– INR 499, Joining Bonus– INR 500 Amazon e-gift Voucher, Annual Fee waiver– 1 lakh spend in a year Online exclusive partner INR 100= 10 reward points Other online spend INR 100= 5 reward points Others INR 100= 1 reward points, 1 RP=INR 0.25, 1% Fuel surcharge waiver |
| HDFC MoneyBack+ Credit Card | Joining fee– INR 500. 1% Fuel surcharge waiver 10X cash points: 20 cash point per INR 150 on Flipkart, Amazon,Swiggy,BigBasket 2 cash point per INR 150 for other categories including UPI, 1 cash point =INR 0.25 |
| Axis Bank ACE Credit Card | Joining fee– INR 499 (waived off on annual spend 2 lakh) 5% cashback on google pay for paying electricity, gas, internet 4% cashback on Zomato, Swiggy and Ola (max INR 500 cashback/month for combined 5%+4% cashback) 1.5% cashback on other spend, 1% Fuel surcharge waiver Lounge Access-4 complimentry domestic airport lounge access/year |
| Flipkart Axis Bank Credit Card | Joining fee– INR 500 , Welcome benefit– INR 250 Flipkart voucher 7.5% cashback on Myntra(max INR 750/transaction), 5% cashback at Flipkart & Cleartrip Lounge Access– Not available, 1% Fuel surcharge waiver |
| Kotak Myntra Credit Card | Joining fee– INR 500 , Welcome benefit– INR 500 Myntra voucher 7.5% cashback on all Myntra , 5% cashback at Swiggy & Cleartrip Unlimited 1.2% cashback on other categories including UPI Lounge Access– 1 Complimentry domestic airport lounge access/quarter 1% Fuel surcharge waiver |
| IndianOil Axis Bank Card | Joining fee– INR 500 4% value cashback: 20 EDGE reward points/INR100 spend on IOCL 4% value cashback: 5 EDGE reward points/INR100 on online shopping, 1 EDGE reward points/INR100 on other spend 10% discount on Movies through BookMyShow,1% Fuel surcharge waiver (max INR 50/statement) |
You have more options of INR 500 annual fee credit card like ICICI HPCL Super Saver, BPCL SBI Card, Airtel Axis Bank Credit Card
Which One Should You Pick in 2025?
New to credit cards?
Start simple with a lifetime free card. You won’t pay a rupee to keep it active, and it’s a great way to dip your toes into the world of credit without any stress.
Spend a lot each month?
Look into cards that cost around INR 500 a year. Many of them offer perks like airport lounge access or solid cashback. If you hit the annual spending threshold for a fee waiver, it is basically free and the rewards can far outweigh the cost.