Free tier vs startup credits: what's actually different

Three different things get called “free cloud”, and mixing them up can cost you eligibility for the largest of them.

Free tier, free trial credits and startup programme credits are three distinct offers with different limits

The three things

Free tierFree trial creditsStartup credits
What it isA permanent allowance of small service quantitiesA one-off credit grant for new accountsA programme grant for qualifying startups
Typical sizeAlways-free usage limits per serviceA few hundred dollars, time-limited$1,000 – $350,000
Who gets itAnyoneAny new accountStartups meeting eligibility criteria
Application neededNoNoYes
ExpiresNo — ongoing allowanceYes, typically 90 daysYes, typically 1–2 years
Good forLearning, tiny side projectsEvaluating the platformActually running a startup

Free tier

Both providers publish their always-free limits — the AWS Free Tier and Google Cloud free tier. Both keep a permanently free allowance on many services — a small amount of object storage, a limited number of function invocations, a micro instance in some cases. It never expires, but it is sized for learning, not for a product with users. You will exceed it the moment you have real traffic.

Free trial credits

New accounts get a one-off credit grant with a short clock on it, meant for evaluating the platform. It is genuinely useful for a proof of concept and genuinely insufficient for anything beyond that.

The trap worth knowing about Google's Start tier requires that you have no prior Google Cloud credits beyond the free trial. The free trial itself does not disqualify you — but other promotional credits you picked up along the way can. If you are planning to apply to the startup programme, be deliberate about which credits you accept before you do.

Startup credits

This is the one that matters. AWS Activate runs from $1,000 to $200,000+; the Google for Startups Cloud Program runs from $2,000 to $350,000. Both require an application and both screen on company age, funding stage and prior claims — not revenue.

The order of magnitude is the point. A free trial buys you a fortnight of evaluation. A startup grant can buy you a year of runway.

"Without a credit card"

A common search, and the honest answer is that you generally cannot avoid it. Both providers require a payment method on file to verify the account, and AWS Activate specifically requires an AWS account on a paid tier plan before you apply.

The card is a verification and overage mechanism, not a charge. But you should treat it as live: if credits run out or expire, usage bills to that card at standard rates. Set a budget alert the day you add it — see checking your balance and setting alerts.

Which should you be on?

  • Learning the platform? Free tier. Do not spend an application on it.
  • Evaluating whether to migrate? Free trial credits.
  • Building a company? Apply for startup credits now. There is no advantage to waiting, and Google's coverage-based tiers only apply to spend that happens after you are accepted.

Start with the eligibility criteria, then the step-by-step guides for AWS Activate or Google Cloud.

Frequently asked questions

What is the difference between the AWS free tier and Activate credits?
The free tier is a permanent allowance of small service quantities available to any account, with no application. Activate credits are a startup programme grant of $1,000 to $200,000 or more, requiring an application and eligibility screening. The free tier never expires; Activate credits typically expire in 12–24 months.
Can I get free Google Cloud credits without a credit card?
Generally no. Google Cloud requires a payment method to verify a billing account, and AWS Activate requires an account on a paid tier plan before you apply. The card verifies the account rather than charging it, but usage does bill to it once credits are exhausted or expired.
Does using the free trial affect startup credit eligibility?
The free trial itself does not disqualify you from the Google for Startups Cloud Program Start tier, which requires that you have no prior Google Cloud credits beyond the free trial. Other promotional credits accepted along the way can affect eligibility, so be deliberate about what you claim before applying.

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