'Lifetime Free’ credit card promised zero cost, UAE resident still got charged
How fine print, missed payments, and credit card usage rules often trigger unexpected fees
Dubai: A UAE resident says a credit card sold to him as “lifetime free” ended up costing him hundreds of dirhams — despite repeated assurances that the card carried no fees.
The card promised zero joining and annual charges for life. Months later, his statement showed fees he did not expect and did not understand.
“I took the card because it was supposed to be free forever,” the cardholder said. “I never imagined I’d still be charged.”
The experience mirrors complaints raised by other residents over the years, where “free” cards quietly become expensive once certain conditions are triggered.
So what does lifetime free actually mean?
What these cards cover — and what they don’t
In most cases, lifetime free credit cards only waive the joining and annual fees. They are not exempt from other charges that apply to standard credit cards.
You can still be billed for:
Cash withdrawals from ATMs
Late payment penalties
Interest if you don’t pay the full balance
Over-limit transactions
Foreign currency mark-ups
Some cards also impose inactivity fees if you don’t use them often enough. Others remove the annual fee waiver if you fail to meet a minimum spending threshold within a year.
That’s where many cardholders get caught out.
5 common reasons ‘free’ cards can charge you
Most disputes stem from conditions buried deep in the fine print. These are the most frequent triggers:
Hidden terms: Some cards stay free only if you spend a minimum amount every year. Miss it, and the annual fee kicks in.
Late payments: Miss a due date by even one day and penalties apply automatically.
Interest charges: Carrying forward a balance attracts high annual percentage rates (APR), even on free cards.
Cash withdrawals: ATM usage attracts immediate fees and interest from day one.
Foreign currency transactions: Overseas spending often includes a conversion mark-up.
None of these are waived just because the card is marketed as lifetime free.
Why banks say charges always reflect the terms
Banks maintain that all fees are disclosed upfront in the Most Important Terms and Conditions (MITC) document.
In past cases reported by Gulf News, some banks reversed fees after customers escalated complaints and pointed to conflicting sales promises.
In the UAE, customers have previously raised billing disputes involving major lenders, where fees were later corrected after follow-ups.
How you can avoid paying for a ‘free’ credit card
If you already have — or plan to apply for — a lifetime free credit card, these steps matter:
Read the fine print: Focus on the MITC. Look for spending thresholds, inactivity clauses, and penalty fees.
Pay the full amount on time: This avoids interest and late payment charges entirely.
Confirm usage requirements: Ask if the card stays free only after meeting annual spend limits.
Check your statements regularly: Spot unexpected charges early. Disputes are easier when raised immediately.
If a fee appears in error, banks advise customers to contact support promptly and escalate if needed.
For many residents, the takeaway is simple: lifetime free never means completely cost-free — unless you understand exactly what triggers the charges.
