No Annual Fee Credit Cards

No annual fee credit cards used to be ideal for people seeking a credit card with fewer frills because all they really wanted was a credit card that could be used in emergencies, or very infrequently.

In reality, there is such competition in the credit card industry at the moment that you don’t really have to suffer too many trade-offs when choosing a credit card. Many credit cards these days offer a series of attractive features, not just one. This is great for the consumer as it gives them the choice they need to make the right application.

Some people will have no interest in a no annual fee credit card. These are the people who will be looking at Gold and Platinum cards because they offer the higher credit limits and extra perks that better suit their lifestyle. Besides, anyone earning upwards of $50,000 is hardly going to quibble over a $60 annual fee for their credit card.

The majority of us, however, need to keep a fairly close eye on our finances, and $60 here or there can make a difference in the long-term. An annual fee is especially unpopular when we don’t really want to carry a credit card, but our sensible side tells us it’s always good to have a back-up if needed. For anyone who rarely uses their credit card, $60 on an annual fee will seem like money down the drain.

Happily, there are a number of no annual fee credit cards out there. The only real downside is that the ongoing rate of interest for purchases on these cards ranges for 16% to 20%, which is in the higher bracket. This is where you need to do a few sums and look at your spending habits historically, and predict how they might play out in the future. If you are likely to build up a debt you cannot pay off for several months, and you think this will be a regular pattern, then you will need to be looking for a credit card with a low ongoing rate of interest, and these can be found from around 10%. In this case, a no annual fee credit card will most likely be a poor choice, because you may end up paying more in interest charges with such a card than you saved by avoiding the annual fee.

When considering a no annual fee credit card, make certain you do some comparisons first. In a recent survey, only 6% of Australians said they bothered to visit a credit card comparison site before making their application. Be aware that there are some excellent deals out there, and you may not have to compromise on very much at all in your quest to avoid paying an annual fee.

Related posts:

1. How To Compare Annual Fee Credit Cards
2. ANZ Credit Cards With No Annual Fee
3. HSBC Credit Cards With No Annual Fee
4. The Truth about No Annual Fee Credit Cards
5. Australian Guide To No Annual Fee Credit Cards
6. Commonwealth Bank Credit Cards With No Annual Fee
7. American Express Credit Cards With No Annual Fee

Editor's Choice: Our Top Credit Cards

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
St George Vertigo	Editor's Choice: Low Interest Low 2.99% for 6 months (reverts to 11.99%) p.a. interest rate and balance transfer rate, from one of Australia's most respected banks.	2.99% for 6 months (reverts to 11.99%)	20.74%	2.99% for 6 months	$55	55
Coles Group Source MasterCard	The Coles Group Source MasterCard has no annual fee, a 0% p.a. balance transfer offer for 6 months, with a rewards program including savings on fuel and FlyBuys Points	19.74%	21.99%	0% for 6 months	$0	62
Bankwest Zero Platinum MasterCard	Editor's Choice: No Annual Fee Excellent introductory offer with a $0 annual fee for the life of the credit card and a 1.99% p.a. for 9 months on balance transfers	16.99%	16.99%	1.99% for 9 months	$0	55