AU LIT Credit Card: A Lifetime Free Card

• 10X or 5X reward points on all online domestic & international retail transactions
• 10X or 5X reward points on all POS & contactless offline domestic & international transactions
• 1 Reward Point per Rs. 100 spent on utility spends (Up to 100 reward points per transaction)
• 1 Reward Point per Rs. 100 on other spends, including insurance
• Cardholders can earn a maximum of 25,000 reward points in a statement cycle, excluding utility spends
• 1 Reward Point = Re. 0.25, redeemed through rewards catalogue

Note: Fuel, Rent, Cash withdrawal, BBPS, Quasi Cash and Education & Government Services transactions will not accrue reward points.

This card offers a base reward rate of 0.25%, which is quite low. However, apart from general spends, cardholders can avail a reward rate of up to 2.5%, depending on how much they are willing to pay. At a quarterly fee of Rs. 398, consumers can earn a reward rate of 1.25%, and at a fee of Rs. 598, the card offers a reward rate of 2.5% on all online and offline spends. So basically, to maximize reward point benefits, one has to pay an annual fee of approximately Rs. 2,400.

The reward earning rate of this card seems quite good, but when it comes to redemption, cardholders can redeem rewards at a value of 1 RP = Re. 0.25 through the AU rewards catalogue, which is quite low. Also, the card does not allow cardholders to redeem rewards against statement cashback or air miles conversion.

Milestone Cashback: Cardholders can earn up to 5% cashback on retail spends as per the below details.

Up to 5% cashback @ Rs. 299

• 5% cashback 3 times over a 90 days period for retail spends in addition to 1 Reward Point per Rs. 100 spent
• Minimum retail spends of Rs. 7,500 and a maximum cashback of Rs. 500 over a period of 30 days

Up to 2% cashback @ Rs. 199

• 2% cashback 3 times over a 90 days period, for retail spends in addition to 1 Reward Point per Rs. 100 spent
• Minimum retail spends of Rs. 10,000 & a maximum cashback of Rs. 1,000 over a period of 30 days

Note: Fuel, rent, BBPS transactions, and cash withdrawal, BBPS, Quasi Cash transactions will not be considered for milestone benefit and for cashback calculation.

Category Cashback @ Rs. 199 – Rs. 299

• Additional 5% cashback for grocery, travel, dining, electronics & apparel spends in addition to 1 Reward Point per Rs. 100 spent
• Maximum cashback of Rs. 1,000 per category over a period of 30 days

Let’s assume you have spent Rs. 50,000 in a month as per the below details:

*1% fuel surcharge waiver on transactions between Rs. 400 and Rs. 5,000.

**This fee includes a quarterly fee for opting for accelerated 10X reward points on online (Rs. 299) as well as offline (Rs. 299) spends.

Note: The above calculation is done under the consideration that the user opted for 5% cashback benefit for each category and milestone cashback, along with accelerated 10X points on online and offline spends.

So, if you’re spending Rs. 50,000 in a month, you get a monthly cashback of Rs. 2,250 and reward points worth Rs. 945. However, considering all these features, you would have to pay approximately Rs. 3,000 for a quarter and that too when this card claims to be lifetime free. Other cards like Axis Ace or Cashback SBI offer better value back; for instance, on Cashback SBI, you can avail 5% cashback on all online spends at an annual fee of Rs. 999.

Complimentary three-month memberships of ZEE5, Amazon Prime and Cult Fit. Cardholders will receive a membership code on activating the feature through AU 0101 App. However, the penalty will be charged on not meeting the spends criteria, as per the below details:

Note: Penalty will be levied post 5 days after feature end date.

Offering complimentary Amazon Prime, ZEE5, and Cult Fit memberships is a good benefit for a lifetime free card. And if you put most of your expenses on your credit card, achieving the minimum threshold to avail these memberships isn’t a big deal. But what’s quite different is that if cardholders fail to achieve these spends, they’ll have to pay a penalty. For instance, if you opt for Amazon Prime membership, you have to pay Rs. 199 for 90 days, and if you fail to spend Rs. 10,000 in a quarter, you’ll also have to pay a penalty of Rs. 100. So, to avail these benefits, you already have to pay quarterly fees, and if you fail to achieve spending milestone, you’ll also have to pay a penalty, which affects the overall value of this card.

Lounge Access: Cardholders can avail up to 4 complimentary domestic lounge visits per quarter as per the below details:

• 1 complimentary domestic airport lounge access per quarter (Max. 4 visits) @ Rs. 199
• 2 complimentary domestic airport lounge access per quarter (Max. 4 visits) @ Rs. 299

Fuel Surcharge Waiver: 1% fuel surcharge waiver on all fuel transactions between Rs. 400 to Rs. 5,000 @ Rs. 49 per quarter.

Considering other benefits of this card, lounge access is indeed a good benefit, but it’s chargeable and limited to a maximum of 4 visits. So, even if you’re willing to pay, you cannot even avail 2 visits in a month. Also, fuel surcharge waiver is a basic benefit that almost all entry-level cards offer, whether it’s lifetime free or not, whereas for this card, you have to pay Rs. 49 per quarter to avail fuel surcharge waiver. So, if you already have a card that offers these basic benefits, there’s no point in getting this card specifically.

The card offers benefits across multiple categories. Hence, to maximize benefits on a single category, you have to opt for all other features related to that category as well.

Let’s assume you want to maximize benefits on offline grocery shopping. For that, you have to opt for 5% cashback for grocery spends, 5% cashback with a maximum capping of Rs. 500 as milestone cashback, and accelerated 10X reward points on offline spends.

Considering you have spent Rs. 10,000 in a month, you can save as per the below details:

Assuming that you spend Rs. 10,000 every month for a quarter on offline grocery, then you will be able to save Rs. 3,750 in a quarter on your grocery spends at a fee of Rs. 897. However, spending the same amount every month on a specific category is highly unlikely, so maximizing the benefits of this card might be a bit challenging.

One thing that sets this card apart from other cards is its set and change feature, which offers benefits according to your lifestyle. Cardholders have the full power to switch on and off these features and opt for ones that fit within their budget. The opted features come with a validity period of 90 days, and after that, these features get auto-renewed, or you can change them through the app. This card is suitable for those who want to avail benefits across multiple categories but do not want to pay anything when they are not using the card.

However, the downside of this card is that you have to pay a quarterly fee for the features you opt for. And if you want to make the most out of this card, you’ll have to pay around Rs. 3,000 for 90 days. Whereas, cards in the market usually come with a simpler structure by offering benefits across multiple categories at a much lower annual fee.

Consider AU LIT Credit Card if:

• You want to avail customized features as per your needs
• You want to avail additional cashback along with rewards on your spends
• You want to earn cashback on everyday spends, such as groceries, dining, etc.

Consider other options if:

• You frequently pay utility bills through your credit card
• You do not want to indulge in the complexity of paying a quarterly fee
• You frequently travel and are looking for a card that offers decent travel benefits