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Credit cards with no annual fee

Credit cards with no annual fee

If you’re looking for a card with no annual fee, you can still get a variety of benefits. Find out more on what some of the pros and cons are.

Anelda Knoesen
From the Money team
minute read
posted 10 JANUARY 2020

What is a no annual fee credit card?

A no annual fee card is simply a credit card that allows you to enjoy the benefits without paying a fixed yearly or monthly fee. If you have a monthly fee, you will pay if off as part of your credit card bill. A lot of credit cards won’t have a monthly or annual fee and many even benefit from a 0% introductory period.

What are the benefits of a no annual fee credit card?

The main benefit of a no annual fee credit card is that you can save on credit card costs. Many credit cards such a balance transfer cards, purchase cards and rewards card may also come with a 0% introductory period to help you save on interest charges. A no annual fee card ensures you still be able to get the benefits of a credit card without having to worry about additional fees whilst you’re not using the credit.

What are the disadvantages of a no annual fee credit card?

The main disadvantage of a no annual fee card is that they tend to come with less generous reward schemes and perks. It’s important to weigh up what rewards you would like from your card and whether you already have some of the perks offered as rewards, such a breakdown cover.

Credit cards with no annual fee can also have higher interest rates, so if you don’t pay your balance off in full at the end of each month then you could end paying high interest charges. If that’s the case, you might want to consider a low interest credit card instead.

How can I tell which credit card is right for me?

When choosing a card that is right for you, there are a few things that you will need to look at. The Annual Percentage Rate (APR) is the cost of borrowing on the card, if you don’t pay the whole balance off each month. You’ll need to ensure that you can afford to keep with your monthly repayments and if you’re comparing cards, look at how long the introductory rate lasts as well as the interest rate it changes to at the end of the introductory period.

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