Do You Need A No Fee Credit Card?
Posted June 22nd, 2010 and last modified January 17th, 2012Considering whether or not you should apply for credit cards with no fees
Choosing which is the best credit card for you fundamentally depends on your personality, how you plan to use the card and whether you’re comfortable leaving some of your monthly credit card balance unpaid or whether you don’t feel right unless you pay the lot off each month without fail.
No Fee Credit Card from HSBC
The HSBC Credit Card offers new applicants a balance transfer option which is one of the most competitive currently available, and the benefit of a $0 annual fee for life.
- $0 annual fee
- 17.99% p.a. on purchases
- 0% p.a. for 6 months with 2% handling fee on balance transfers
- Cash Advance Rate of 21.99% p.a.
- 55 days interest free
- Minimum Income Requirement of $20,000 p.a.
The Commonwealth Bank offers a low fee credit card, which sounds fine, but doesn’t necessarily suit the spending habits of someone who is quite happy leaving a little of the monthly balance unpaid. For those people, it’s more important to look at the interest rate being charged for unpaid balances because that’s where all the money goes.
Low Interest Plus No Fee Credit Card
Such people really need to look out for a low interest credit card, rather than a no annual fee credit card. If they find a low interest credit card that also features zero annual fees, then they should consider it’s their lucky day and they can shout themselves a ticket in the nearest lottery.
But people who pay off their credit card balance religiously every month will save the most money by taking up the offer of a no annual fee credit card because not only are they avoiding the fee, they’re also not paying interest on an unpaid balance.
Credit Card Rewards Programmes
Not many people pay much attention to the rewards programs associated with credit cards when applying for a new one.
For example, imagine you’re tossing up between a zero annual fee card with a reward program and a credit card with an annual fee and a different reward program. What you should decide is whether the second card provides a reward program that’s worth more in dollar terms than the first card, even though you are paying an annual fee.
If it is, then there’s little point in worrying about the zero annual fee card.
Making The Right Choice Not Simple
As you can see, choosing a no annual fee credit card over other kinds of credit cards is not always a simple proposition. Some cards will offer a no annual fee option, but only for the first year, after which a fee kicks in. If you’re after a card that never charges an annual fee, then you’ll just have to keep looking.
In summary, when you’re shopping around for credit cards, don’t just stop at the first no annual fee card you see. There are other considerations like your personality, your spending habits and the rewards programs to consider, before you make up your mind.
Check out today's featured offers:
| Westpac Low Rate | Citibank Clear Platinum | Qantas AMEX Discovery | ANZ Platinum |
 |
 |
 |
 |
0% p.a. for 6 months on purchases & balance transfers |
2.9% p.a. for 12 months |
$0 annual fee Up to 10,000 Bonus QFF Points |
0% p.a. for 6 months on purchases & balance transfers |
|
|
|
|
Subscribe to our newsletter and get "The Ultimate Guide to Balance Transfers"
If You Like This Post...
Get all the latest deals, guides and loopholes go in Credit Card Finder's free bi-monthly email. Don't miss out - join the thousands who get it emailed!
No related posts.
Ask A Question