Top > News > Articles
'Lifetime Free’ credit card promised zero cost, UAE resident still got charged

Credit cards marketed as “lifetime free” have become increasingly popular among consumers looking to avoid yearly costs while still enjoying the benefits of card payments. The promise of zero annual fees for life sounds appealing, especially for people who want a convenient payment method without the burden of recurring charges. However, some cardholders in the UAE have discovered that these offers may not always be as simple as they appear.

In several cases, residents who signed up for cards promoted as “free forever” later noticed unexpected charges on their statements. While the cards did not include joining or annual fees as advertised, other costs began appearing after a few months of use, leaving some users confused about how a “free” card could still generate expenses.

The reality is that the phrase “lifetime free” typically refers only to specific charges. In most credit card agreements, the lifetime waiver applies solely to the joining fee and the annual membership fee. Other charges that are common across standard credit cards still apply unless specifically waived by the issuing bank.

Because of this, many cardholders may not realize that their card can still generate fees depending on how it is used. These additional costs are usually outlined in the card’s official terms and conditions, but they are sometimes overlooked during the application process.

Financial experts often advise consumers to read all documentation carefully before accepting any credit card offer. Even when a card appears to have no annual cost, the rules governing its usage may still include various conditions, service fees, or penalties.

One of the most common situations where charges appear involves missed payment deadlines. Credit card bills must be paid by the due date shown on the statement. Even a short delay can trigger a late payment fee, and in some cases, additional interest may begin accumulating on the outstanding balance.

Another scenario occurs when cardholders do not pay the full amount due. Carrying forward an unpaid balance typically results in interest charges, which can be relatively high compared with other forms of borrowing. These interest charges apply regardless of whether the card is advertised as lifetime free.

Cash withdrawals from ATMs are another activity that can generate unexpected fees. Many credit cards allow cardholders to withdraw cash, but these transactions usually include both a service fee and immediate interest charges from the day the withdrawal is made.

International spending can also add extra costs. When purchases are made in foreign currencies, banks often apply a conversion fee or foreign transaction markup. These charges are standard across many credit cards and are not typically waived under lifetime free promotions.

In addition, some cards include conditions related to usage levels. Certain financial institutions require cardholders to meet a minimum annual spending amount in order to keep the annual fee waiver active. If the spending threshold is not reached within the year, the annual fee may automatically apply despite the card initially being promoted as free.

There are also cards that include inactivity policies. If the card remains unused for a long period, some banks may apply service charges or account maintenance fees, depending on the specific agreement.

For banks, these fees are part of the standard credit card framework and are generally disclosed in official documents provided during the application process. These documents often include a section summarizing the most important terms and conditions, where details about penalties, interest rates, and transaction charges are explained.

However, many consumers focus primarily on the headline benefit of “lifetime free” and may not examine the full list of conditions attached to the offer. This can lead to misunderstandings later when unexpected charges appear on monthly statements.

To avoid surprises, financial advisers recommend several simple practices for credit card users. Paying the full balance on time each month is one of the most effective ways to prevent additional costs. Monitoring account statements regularly also helps cardholders detect unfamiliar charges early and resolve them quickly if needed.

Prospective card applicants should also ask about any spending requirements that might affect the lifetime fee waiver. Clarifying whether the card has minimum usage rules or inactivity clauses can help prevent confusion in the future.

Ultimately, the key point many consumers discover only later is that “lifetime free” usually refers to the absence of annual membership fees, not the absence of all possible charges. Understanding this distinction — and reviewing the detailed terms of the card agreement — can help users enjoy the benefits of their credit card while avoiding unexpected costs.

Read More

Advertisement

Advertisement

Recommended
Exciting New Options in Upper Thomson: June BTO Sales Exercise Preview
Exciting New Options in Upper Thomson: June BTO Sales Exercise Preview
money
OCBC posts 3% rise in Q4 profit to $1.75b, declares special dividend
OCBC posts 3% rise in Q4 profit to $1.75b, declares special dividend
money
Gold prices in Dubai jump over Dh9 per gram amid Rising Middle East Tensions
Gold prices in Dubai jump over Dh9 per gram amid Rising Middle East Tensions
money

Advertisement

Advertisement

Singapore REITs: Are they worth buying now?
Singapore REITs: Are they worth buying now?
money
Escalating Middle East Conflict Leads to Rise in Petrol Prices in Singapore
Escalating Middle East Conflict Leads to Rise in Petrol Prices in Singapore
money
At $1.7m, 5-room loft flat in Queenstown breaks national HDB resale record
At $1.7m, 5-room loft flat in Queenstown breaks national HDB resale record
money
Record Land Rate Achieved at Tanjong Rhu GLS Tender
Record Land Rate Achieved at Tanjong Rhu GLS Tender
money
Asian Equities Decline as Tech Stocks Retreat and Indonesia Faces Credit Downgrade
Asian Equities Decline as Tech Stocks Retreat and Indonesia Faces Credit Downgrade
money
Volkswagen's Plan to Manufacture Most Vehicles in China by 2030
Volkswagen's Plan to Manufacture Most Vehicles in China by 2030
money

Advertisement

Advertisement

Malaysian Assets Drawing Global Investors with Stable Growth and Rising Ringgit
Malaysian Assets Drawing Global Investors with Stable Growth and Rising Ringgit
money
Rising Expenses? 5 Ways to Strengthen Your Financial Security
Rising Expenses? 5 Ways to Strengthen Your Financial Security
money
uSMART SG lets you earn up to 8.88% interest on your ang bao money this CNY
uSMART SG lets you earn up to 8.88% interest on your ang bao money this CNY
money
Singapore Airlines sees record $5.5b revenue in Q3 but profit falls 69%
Singapore Airlines sees record $5.5b revenue in Q3 but profit falls 69%
money
China Tightens Crackdown on Virtual Currencies, Bans Unauthorised Offshore Issuance of Yuan-Pegged Stablecoins
China Tightens Crackdown on Virtual Currencies, Bans Unauthorised Offshore Issuance of Yuan-Pegged Stablecoins
money
The Latest Crypto Market Turmoil Sparks Fears Amid Global Sell-Off
The Latest Crypto Market Turmoil Sparks Fears Amid Global Sell-Off
money
Grocery expenses increased the most in past year: Case Budget 2026 poll
Grocery expenses increased the most in past year: Case Budget 2026 poll
money
Choosing Between New Launch and Resale Condo in Tampines
Choosing Between New Launch and Resale Condo in Tampines
money
The Unusual Sale of a One-Seventh Stake in 5 Oxley Rise, District 9
The Unusual Sale of a One-Seventh Stake in 5 Oxley Rise, District 9
money
Toyota Announces CEO Koji Sato's Departure and CFO Kenta Kon's Promotion
Toyota Announces CEO Koji Sato's Departure and CFO Kenta Kon's Promotion
money
Stocks Selloff Deepens as Dollar Strengthens Amid US and Israeli Strikes on Iran
Stocks Selloff Deepens as Dollar Strengthens Amid US and Israeli Strikes on Iran
money

Advertisement

Access Ranking
More Singaporean families choosing to live in Johor, but it's not just about cheaper living
News
More Singaporean families choosing to live in Johor, but it's not just about cheaper living
Islamabad United Secures Victory Over Quetta Gladiators with Dominant Performance
Sports
Islamabad United Secures Victory Over Quetta Gladiators with Dominant Performance
UAE Sees Surge in Natural Fertility Solutions as Infertility Rates Rise
Healthy
UAE Sees Surge in Natural Fertility Solutions as Infertility Rates Rise
Prime Dubai Districts See Office Property Boom with Prices Exceeding Dh5,130 per Sq Ft
Rental
Prime Dubai Districts See Office Property Boom with Prices Exceeding Dh5,130 per Sq Ft
Write a message of hope at Dubai’s giant viral chocolate box, receive free goodies
News
Write a message of hope at Dubai’s giant viral chocolate box, receive free goodies
Dubai updates two-year residency visa rule for property investors
News
Dubai updates two-year residency visa rule for property investors
How to Stack Spends and Get More Miles on Your Credit Card
News
How to Stack Spends and Get More Miles on Your Credit Card
The 6 Best Sunscreens For Acne-Prone Skin
News
The 6 Best Sunscreens For Acne-Prone Skin
Scammed by a bank fraud in the UAE? Here’s how you can try to recover your money
Finance
Scammed by a bank fraud in the UAE? Here’s how you can try to recover your money
Keeping older Singapore condos liveable needs discipline—not just policy support
News
Keeping older Singapore condos liveable needs discipline—not just policy support
Budget-Friendly Areas to Rent Studios in Abu Dhabi
apartment
Budget-Friendly Areas to Rent Studios in Abu Dhabi
Oil Prices Decline Amid Peace Talk Expectations Between US and Iran
money
Oil Prices Decline Amid Peace Talk Expectations Between US and Iran
Global Oil Supply Disruption: Over $50 Billion Lost Due to Iran Conflict
money
Global Oil Supply Disruption: Over $50 Billion Lost Due to Iran Conflict
Changi Airport to Unveil New Private Terminal and Lifestyle Hub by Mid-2027
Travel
Changi Airport to Unveil New Private Terminal and Lifestyle Hub by Mid-2027
Dubai: 7 free fitness classes and wellness events to try this week
News
Dubai: 7 free fitness classes and wellness events to try this week
What is “sleepmaxxing”? Breaking down the viral sleep trend everyone’s talking about
News
What is “sleepmaxxing”? Breaking down the viral sleep trend everyone’s talking about
10 of the best spas in Dubai to reset
Lifestyle
10 of the best spas in Dubai to reset
Ada Choi Embraces Living in the Present
Entertainment
Ada Choi Embraces Living in the Present
HDB resale prices just fell for the first time since 2019 — is this the start of a bigger shift?
apartment
HDB resale prices just fell for the first time since 2019 — is this the start of a bigger shift?
Is This KL’s Best Lei Cha? We Taste-Tested the Top-Rated Bowl
Food Info
Is This KL’s Best Lei Cha? We Taste-Tested the Top-Rated Bowl

Advertisement