No Annual Fee For First Year

Most credit cards charge some sort of annual fee. However, were you aware that some credit cards offer a special no annual fee for the first year deal that could save you money?

Most credit cards charge holders an annual fee of some sort every year that they hold the card. This fee is sometimes charged on a monthly basis and sometimes in a yearly basis. These fees can quickly add up, especially for those who only use the card occasionally, and those who keep emergency credit cards.

People can save money by switching to a no annual fee credit card. These cards can be a pretty good deal because no fee will be charged for simply owning them. Most of the no annual fee cards charge no such fee for the first year.

When No Annual Fee for the First Year is a Good Deal

This can save a person money, if they are simply getting an emergency card or are moving a balance to a card. Such cards are also very useful for people who use credit cards occasionally. An example of this would be a person who only uses a credit card to make large purchases such as appliances or tools.

The no annual fee for the first year cards will cost a person nothing for the first year that they hold them if they don’t use the card. This can be a very good deal for a person who intends to make limited use of a card.

Those who are planning to use the card on a regular basis will often save money by getting a card with a higher annual fee but lower interest. The reason for this is that the amount of interest on regular purchases will often exceed the amount of the annual fee.

A no annual fee for the first year credit card that has a high interest rate is not a good deal for a person that makes a lot of charges. Instead such a person would probably better off with a points card that lets them build up points towards purchases of items, such as airline tickets.

How to Use a No Annual Fee for the First Year Credit Card

There are some really good uses for these cards including balance transfers. If a person just wants to transfer a balance to a lower interest rate card, and pay it off they could save some money with no annual fee.

Eliminating the annual fee will lower your credit card bill and make it easier to pay the balance off. If you have a large balance, a lower interest could be a better deal because a higher interest rate will increase the balance over time.

A person who intends to pay a balance transfer off quickly could definitely benefit from no annual fee for the first year. An individual who has to keep the balance for a number of years should consider the amount of the balance they will have to pay off over the long term.

Even if they do such a card can save a person money because annual fees can add $50 or more to a yearly credit card balance. If the fee eliminated is excessive, the savings will be even greater.

The Best No Annual Fee for a Year Credit Card

The best deal that a person can find in a no annual fee credit card is one that has no annual fee and no interest for a specific period of time. An example of this would be a card that was interest free for nine months, and no annual fee.

This means that person will not pay any interest or fees, as long as they are sure to pay the balance off quickly. This would be an excellent deal for a person who normally doesn’t use a credit card, but needs one because of an emergency or money troubles.

Where to Find No Annual Fee Credit Cards

There are several such cards available from major banks and retailers in Australia. Some of the best deals allow people to save money on select items at specific stores, or to collect points towards rewards. These rewards can be a really good deal for those who think they will collect enough points.

There are also annual fee cards that have very low rates. These would be a good deal for a person who plans to make major purchases with a credit card or transfer a balance. Some of them do come with special balance transfer rates.

The best way to find these cards is to shop around and compare deals. Always read the credit card agreement closely because there are card providers that will simply try to hide the annual fee by giving it another name. Others may have a higher annual fee later on.