No Annual Fee

There are some great annual fee credit cards available in the marketplace and if you need a new credit card you may want to consider one of them. They offer great value when you know how to treat them and understand what they should be used for.

Most credit cards will charge an annual fee just for owning the card, but there are no annual fee credit cards available for people that want to save money by avoiding this fee. Sometimes it is a good idea to get a card with no annual fee attached and sometimes it is better to get a card with the fee because of the other benefits and features found on the card.

No annual fee credit cards

It is often tempting to look at this type of card and think that it would naturally be the best since it does not carry an annual fee, but in reality this sort of card isn't the best solution for everybody. No annual fee credit cards are best suited for people that can always pay off their balance in full every month or use their cards only when an emergency arises.No annual fee credit cards often have a higher interest rate than other cards so if you carry a balance forward from month to month the higher interest you will have to pay will undo the benefits of paying no annual fee.

Best uses of these cards

If you have selected no annual fee credit cards it is because you want to save money by avoiding the maintenance charges. Keep this in mind when you use your credit card as you would another card. Try to avoid excessive spending and only purchase what you can reasonably afford to pay back when your credit card balance is due.

No matter what type of credit card you own, you should remember that carrying a balance can be very costly. If you own a no annual fee credit card the cost will just be all the more higher since the interest rates tend to be higher.

It is always best to take a look at your budget and find out how much spending you can do with your card before heading to the shops for the month. If you have an unpaid balance of $1000 and you are currently paying a 20% rate of interest you would be much better off getting a low interest credit card with a low annual fee. If you only carry over small balances from one month to the next then it may still be worth your while to get a card with no annual fee and pay the higher interest rate.

Sometimes it can be difficult to predict the future and you just need to base your judgment on how you have treated your credit card in the past. If you have never owned a credit card before you can look at any past debts you have had and how well you were able to pay them off. This is the best indicator of how well you will be able to handle your monthly balance once you receive your new card.

Here are some of the situations where owning no annual fee credit cards can work for you.

1. If you can pay off your balance regularly.

It really doesn't matter what type of interest rate you have on your credit card if you pay off your balance on time. This type of credit card accommodates people that keep their statements up to date faithfully.

2. If you don't fall into debt easily.

There are some people that run away from debt and never want to owe money for any reason. No annual fee credit cards are great for people that don't want debt and do everything they can to avoid it. This means that balances will usually be paid off monthly and when it is not possible they will be paid off very quickly.

3. You use the card only for emergencies.

Some people keep a credit card in case a crisis situation arises and only use it for this purpose. This is the best type of credit card for people that have a second card to make purchases and want one put away for times of need.

4. You need short-term credit to make a purchase.

Many credit cards offer a 55 day period of interest free shopping and if you make smart use of this option, a no annual fee credit cards fits the bill perfectly. It can be used as a loan for these days as long as you're sure that you will be able to pay off the balance when the time period with no interest is over.

Finding the right card with no annual fee

There are 3 kinds of cards that do not have an annual fee and finding the right one for you is vital since you will probably own this card for many years to come.

Sometimes you will be given a card that has no annual fee as a social discount for having other products with a bank. The fee may be reduced or entirely waived for as long as you own the card or may be given only for the first year.
Some cards have no fee for life. This is the best kind of no annual fee deal you can find. Always check the small print on your credit card contract first to make sure that it is indeed a lifetime no annual fee you're getting.
Many cards state that they have no annual fee but on closer inspection you find out that it is only for the initial year. After 12 months you will have to start paying the regular fee. Make certain that the fee you will have to pay later is not set too high. Some credit card providers may try to fool you into getting a card with a very high annual fee by offering no fee for the initial year only.

How to use the card for emergencies

It is always a good idea to have one special card that you put away for emergencies only. When you get a credit card with no annual fee you're making the most of the card by not using it except during a time of crisis. There are a few things, however, that you should know about these cards before tucking one away in a safe spot so it doesn't get used for regular purchases.

There is a possibility that the interest rate can change according to the policies set by the credit card provider. If you don't use the card very often your interest rate may rise unexpectedly. You will be sent a letter in writing informing you of any changes so it is important open any correspondence from the credit card provider, even if you're not using the card. You need to stay up-to-date on any changes that happen on your card.

Some people have a habit of just trashing this correspondence and assuming it is junk mail. There is a possibility that you may miss an important announcement about your credit card by just making this assumption so make sure that you always open any letters you have been sent regarding your card.

You should also read the fine print to find out what the conditions and terms are on your card in regards to how often it is used. Some card providers set conditions for card usage and it is important to know this before you apply for a card that you don't plan to use very often.

It is not only interest rates that can change, but fees and charges. You may end up paying a maintenance fee to keep the card if it is seldom used.

Other card features

You should carefully examine all of the other card features before making a final selection on a no annual fee card. Every credit card will have its own benefits and features and you should look at them closely to determine which card is best suited for you.

Ideally you should not be looking for a no annual fee card that has a rewards program attached to it. This will encourage excessive spending and may end up getting you in debt. Rewards programs are great and serve a useful purpose, but not when they are part of a no annual fee card with a higher interest rate. If you want to get rewarded for the shopping you do it is best to get a second card with a low interest rate to serve this purpose.

You should also make sure that your card comes equipped with a state-of-the-art fraud monitoring service. Just because you're applying for a card that you won't use often does not mean that this is not an important feature of the card. When you do have to pull out your credit card it is nice to know that you are using it safely and that the odds are low that you will have any kind of problem with fraud since your card is being watched carefully. You should also check and make sure that there is a fraud guarantee for any purchases that you make online or at any retail shops.

No annual fee credit cards are perfect if you're not going to be using your card too often or if you can pay off your balance every month. It is a good idea for anyone to have a second card stored away for an emergency and these cards are the best for this purpose.

Steps In Applying For A No Annual Fee Credit Card

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No Annual Fee Credit Card is a financial comparison website, it has no affiliation with Australian Banks. We make an effort to keep up to date with all materials posted on this website, however there can be a delay between us and the banks. Best Credit Cards only represents a limited group of credit cards that are currently accessible by the Australian Market. The term 'best' is by no means a representation of the best card in the australian credit card market. It may not represent the best choice for your individual circumstances. It is always advised that you seek consultation from your own financial advisor before making a decision.

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