Compare credit cards no annual fee12/31/2023 ![]() ![]() It’s important to check all the terms and conditions to be sure that an annual fee won’t wipe out any potential savings you made in the introductory offer. You need to be sure you will still be benefiting once the promotional or introductory period wears off. There can also be a downside to cards with an introductory deal. You don’t want to be saving your annual fee only to cop a higher interest rate. Do your research and check the minimal interest free days, the interest rate and any other fees associated with the credit card. If you are unable to pay off your credit card in full each month, the interest on carrying a balance may end up costing you more than the money saved on the annual fee. And no annual fee cards might have higher interest rates to compensate. This cost is likely to be greater than the annual fee. The main consideration is the interest rate, if you don’t plan on paying off your balance in-full and on-time. ![]() The annual fee isn’t the only fee associated with having a credit card. Are there any risks in having a no annual fee credit card? Higher interest rates If you’re someone who doesn’t use your card very regularly, and only for peace of mind and emergency purchases, a fee free credit card could be a great fit. Some of the other benefits may include a balance transfer which if used properly can assist with consolidating debt. This can save you some initial outlays up front. Take advantage of introductory offersĪnother benefit can be the introductory offers with credit cards that might offer to waive annual fees for a set period of time. ![]() It can also be useful if you need to rent a car or pay for a hotel security deposit, but don’t want your own funds frozen for a set period. They can also be ideal for emergencies such as a car repair or unexpected medical bills. Additionally if you know you’re not a particularly big spender then this is an option that might work for you. If you’re looking for a simple card, without the frills or rewards programs a zero annual fee credit card can be a better option for you. Unless you’re getting an equivalent value in perks, you’re essentially wasting money.Ī zero annual fee card is a good starter card, especially for students, recent graduates or people starting out with their first credit card. However, you can’t avoid the annual fee.Ī no annual fee credit card of course means you don’t have to pay out every year, a fee which could be anywhere from a low $30 up to more than $1,500 on premium cards. You can control the interest you pay by paying the balance on-time you can avoid over-limit fees by not exceeding your credit limit you can avoid cash advance rates by not using your credit card to withdraw from an ATM and you can avoid late payment fees by paying off the minimum amount on time. What are the benefits of a zero annual fee credit card? Cuts costs Fee-free credit cards often don’t have the same level of rewards. The annual fee you pay on your credit card is usually put towards things like account maintenance or to support rewards features on your card like a Qantas frequent flyer program. Compare Credit Cards What is an annual fee for? Use our comparison tool to find the right credit card rates for you.
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