No Annual Fee For Life
A no annual fee for life credit card can save you money, but can they alone save you money, and are they deals worth changing lenders for? Read our in depth guide about what they offer, and find out how much you can save.
No Annual Fee For Life Credit Card Offers
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual fee | Cash Advance Rate (p.a.) | ||
|---|---|---|---|---|---|
 HSBC Credit Card | 17.99% | 0% for 6 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 Platinum MasterCard | 1% for 6 months (reverts to 17.99% ) | 4.99% for 12 months | $0 | 18.99% |
|
 American Express Gold Ascent Card | 0% for 6 months (reverts to 20.74% ) | $0 |
|
||
 Bankwest Zero Gold MasterCard | 1% for 6 months (reverts to 17.99% ) | 4.99% for 12 months | $0 | 18.99% |
|
 Bankwest Zero MasterCard | 1% for 6 months (reverts to 17.99% ) | 4.99% for 12 months | $0 | 18.99% |
|
So, you have seen the no annual fee for life credit offers, and want to see if a card of that nature would be right for you and your spending habits. Let’s firstly look at exactly what a no annual fee credit card is, how they work, and whether it would suit you.
What Is A No Annual Fee Credit Card?
Well, this is an almost self-explanatory from the title. Where most other credit cards charge the user a once a year “membership” type fee for use of the card, no annual fee cards do not. What the annual fee pays for is the general upkeep and maintenance of your account. It also pays for some of the added features that come with the more “prestigious” cards, for example reward programs, concierge services, and free insurances.
What you will often find when comparing credit card offers is that the more features that come with the card, the higher the annual fee will be. In fact some of the most prestigious credit cards that come jammed packed with features and high quality reward programs, can carry annual fees up to a costly $300 a year.
No annual fee cards are generally very basic cards. They tend to fall under the “no frills” category, and don’t normally have any of the free insurances, or gift programs offered with other cards. However, what you lose on the swings you gain on the roundabout, and whilst you may miss out on some of the freebies, you save money on the yearly fee.
Who Would Benefit Most From A No Annual Fee For Life Card?
One of the things that should be taken into account when looking at no annual fee cards is the interest rate. It can quite often be higher with these deals as lenders recoup some of the money they lose in the absence of the annual charge. This however can be a major benefit to customers who are savvy with their spending. Why?
Well, with a no annual fee credit card, those who pay off any balance on the account in full each month before interest is charged will never have to pay any extra for using the card. By paying the balance at the end of each month the customer is missing any interest charges, as well as not having a yearly fee to pay, thus getting to borrow money for free.
This tactic comes with a major health warning! DO NOT try and use a no annual card in this fashion unless you are 100% sure you will regularly be able to pay your bill in full. Bearing in mind you will be facing higher interest rates, misuse of this type of card can be very costly!
Another type of customer that will benefit most from this type of no annual fee offer will be ones that rarely use their credit cards, or those that only ever use them in an emergency. It isn’t uncommon for some people to have a credit card that rarely sees the light, and is only kept in case something goes wrong, like a car repair, or urgent one of purchases for example.
Someone who uses their credit card in this way will probably be wasting money paying out on an annual fee and would benefit most from a fee free card.
Different Fee Free Deals
Just to diversify our choice of offers even further, the lenders have created different types of no annual fee cards. Let’s have a look at some of them now:
No annual fee for your first year- This type of deal gives you a whole year without having to pay an annual fee which will save you money for the first year of custom. Although this will give you a short term fix, it is probably not the best deal for those looking to save money over a long period of time.
No annual fee discount offer- This deal is usually offered to customers who hold another product with the lender such as a loan or current account. Generally the annual fee is either reduced or wiped out all together. Read your terms carefully as some lenders reduce the rate for the first year only whilst others let you have the discount long term.
No annual fee for life- The no annual fee for life offer is the creme de la creme of fee free offers. These cards charge no annual fee for the whole time you are a card holder. Remember although you will save money in fees with this type of offer, you will normally be using a very basic card with very few extras attached.
What Else Should You Consider?
As important as checking out a credit card annual fee is, there are also a number of other features you need to look at when choosing your next credit card in order to ensure you get the best deal possible for your needs. Some of the other things to check out are:
Balance transfer offers- Does the card allow to transfer existing debt onto the new card at a special low rate of interest? If it does, and you have any unpaid credit card bills then this sort of deal could save you money, even if the card has a small annual fee to pay for the privilege.
Standard rate of interest- This shows you how much you will need to pay in interest on any monthly unpaid balance. The higher the percentage the more you will pay. Remember what we said about no annual fee cards having a higher interest rate? This is what you need to look for.
Interest free period- How many days do you have between making a purchase and having interest charged? The more days you have the longer you have to pay the debt interest free. Some cards have as many as 55 interest free days on offer whilst others don’t offer any meaning interest is charged the second you buy something.
Other charges- Although you should never miss a payment, it is worth checking out the cards late fees and other charges, just in case a situation arises where you need to pay.
On The Whole
No annual fee for life offers can be a great option, however the rest of what the credit card offers should be taken into account as well. A credit card should never be chosen merely because of one feature, and your overall financial situation should be understood clearly before you make your decision.
