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.