Low / No Annual Fee Credit Cards

Want the safety net of a credit card but don’t want to pay for that privilege? Then take a look at a no annual fee credit card.

Benefits of No Annual Fee Credit Cards

The obvious benefit to signing up for a no annual fee credit card is all in the name. A sentiment that most of us share is that credit card interest rates are high enough without charging annual fees on top of that!

There are two types of no annual fee credit cards – those that offer you no annual fee for the first year (or another length of time) and those that never charge you an annual fee.

No annual fee credit cards are perfect for those that only use their credit card as a back-up. Perhaps you have several credit cards but you want a spare free credit card to use in an emergency. However, you don’t want to have to pay annual fees on a credit card you never, or rarely use!

Additionally, no annual fee credit cards are ideal for those who pay off their credit card bill in full each month as they usually have very high interest rates to counteract the no annual fee. So if you never let your bills roll over then you get the benefits of a credit card at no cost whatsoever!

What do you Miss out on?

No annual fee credit cards sound too good to be true – and like with all things that are free, there is always a catch!

No annual fee does not mean that it is a free credit card. As we mentioned before, expect to pay very high interest rates on no annual fee credit cards.

If you are planning on using your no annual fee credit card on a regular basis, and know that you are unlikely to pay your bills on time each month, then be very cautious when it comes to a no annual fee credit card as you could end up spending more on interest than you would otherwise have spent on annual fees on a different card.

Many credit cards that do charge an annual fee offer you a wide range of benefits and rewards programs. However, no annual fee credit cards tend to be very basic and no frills attached. If you use your free credit card on a regular basis then you could be missing out on a wide range of rewards and other perks that come standard on fee-charging credit cards.

Choosing a No Annual Fee Credit Card

Use Click4Credit’s no annual fee credit card comparison tool to start your search and to see what options there are available to you.

Before choosing a no annual fee credit card you must always take into account how the credit card company is being compensated for you getting the benefit of no annual fee. You don’t get no annual fees for nothing, so ensure that the benefit of no fee is more valuable than the benefits you would get on another credit card that charges an annual fee.