All You Need To Know About No Annual Fee Credit Cards

March 17th, 2011

No annual fee credit cards are very popular because they offer you something for nothing.

As a smart consumer, you are probably concerned with the high cost that is often associated with owning a credit card. Annual fees can be quite costly, ranging anywhere from forty to over a hundred dollars depending on the type of plastic you own. Typically, the more rewards and perks your plastic offers, the more you will have to spend in yearly charges. While these benefits can be nice, they are not worth spending money on if you will not use them.

Types of No Annual Fee Cards

The phrase ‘no annual fees’ does not mean the same thing for every card. Basically, they fall into three categories. You will have to take the time to understand exactly what your issuing bank means when they use that phrase so you know exactly what you are getting for your money.

Free forever - Some cards are the real deal with no yearly charges ever for the life of the card. Typically, this plastic will have slightly higher interest rates and offer little in the way of perks and rewards.

For the first year - An offer might say it is free of yearly charges but then in the small print, it specifies that this is for the first year only. While this saves money in the short term, it might not be the cheapest ongoing deal. Carefully weigh all options of the card to ensure that it is still going to be valuable once that introductory offer expires.

Special discount - The infamous special discount is when the fee is waived once you meet certain criteria. Typically, it is when you reach a minimum spending amount each year on your card, then the yearly charge is waived. Those who use their plastic regularly will probably have no problem meeting this goal. However, if you will only use it sparingly then you might wind up spending more then you anticipated.

No annual fee cards give you the opportunity to have all of the convenience and security of plastic without the added cost. Bear in mind that often waiving annual fees also means having a higher interest rate. Those who will revolve their balance may be better off paying the yearly charge and saving money on their interest costs.

Related posts:

1. No Annual Fee Credit Cards – Different Types
2. No Annual Fee Credit Cards – Pros And Cons
3. How to Compare Annual Fee Credit Cards
4. All You Need To Know About Low Interest Credit Cards
5. No Annual Fee Credit Cards – What Type Of People Need Them?

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
HSBC Credit Card	17.99%	0% for 8 months with 2% handling fee	$0	21.99%
Virgin No Annual Fee Credit Card	18.99%	2.9% for 6 months	$0	20.99%
Bankwest Zero MasterCard	0% for 6 months (reverts to 17.99% )	4.99% for 9 months	$0	18.99%