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No-fee cards are credit cards that don’t charge you an annual fee to use them.
Many credit cards won’t have a monthly or annual fee and some no fee credit cards may also offer a 0% interest-free period.
If you want to keep your costs down, a no annual fee credit card offers a straightforward, low-cost option for spending.
Here are three need-to-knows:
If you clear your balance every month, you won’t be charged any interest on what you’ve spent
If you pay anything less than the full balance, you’ll usually be charged interest at your lender’s standard variable rate – unless you’re on a 0% offer (in which case you'll still need to make at least the minimum repayment).
Missing a payment or going over your credit limit could lead to extra charges – often around £12 each time – and a hit to your credit score.
Quick tip
Always check the payment due date on your monthly credit card bill to avoid any unnecessary fees. If you set up a direct debit, there’s no risk of forgetting and being charged for late payments.
Make sure you have enough in your current account each month to cover your credit card bill. Find out more about how to clear your credit card debt.
A no annual fee credit card might be right for you if:
You want a simple-to-use credit card
You’re keen to keep your credit card costs down
You’re good at repaying what you owe in full each month
You don’t have a large outstanding credit card debt to pay off
You want a spare card or a back-up card to use occasionally.
No annual fee, to help keep your borrowing costs down
If you don‘t use the card (and have no outstanding balance) you won’t pay anything
It’s a good low-cost option if you want a back-up card for emergencies
Some no annual fees cards also offer a 0% interest introductory period.
Any rewards on offer are likely to be less generous than those with rewards cards that charge a fee
You'll still pay interest on any balance you don't clear at the end of the month
You might be charged foreign transaction fees if you spend on the card while you’re abroad (get a travel credit card to avoid this)
If kept as a back-up, an extra credit card could tempt you to spend more.
The annual fee is not the only thing you’ll need to take into account when choosing the best no-fee credit card for you.
You should also look at:
The APR is the cost of borrowing on the card if you don’t pay off the whole balance each month.
The minimum amount you’ll need to pay if you can’t clear the full balance each month. This amount can change depending on how much you owe and the interest rate.
You'll still be charged a fee if you make a late payment, spend over your credit limit or (depending on the card) use your card abroad. Always check the terms and conditions and meet the repayment terms so there are no nasty surprises.
Check when any low or 0% interest rates come to an end, and look at the interest rate you’ll be charged after that. Try to pay off the whole balance before the introductory period finishes to avoid being hit with high interest charges on your outstanding debt.
Most rewards cards will typically charge an annual fee. But it might be worth paying if cashback or loyalty points are better value and more useful to you.
Use our credit card repayment calculator to see the benefit of making more than the minimum repayment every month.
Before you apply for a fee-free credit card, use our credit card eligibility checker to see if you’re likely to be eligible for a card.
It’s a soft credit search and won’t have any impact on your credit score
You’ll see which deals you’re likely to be accepted for.
Save time by avoiding cards that don’t match your circumstances.
Once we give you a list of suitable deals, you can compare APRs and other features to decide which one might suit you the best. Simply click on your chosen deal and you’ll be taken to the credit card provider.
Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.
Quick tip
It’s always a good idea to check your credit report before applying for a credit card or any other type of credit. Any errors or inconsistencies should be corrected as these could bring down your credit score and scupper your chances of being accepted.
Also, make sure you’re on the electoral roll – failing to register could seriously damage your credit score.
Learn more about the different types of credit cards to find the right fit for your needs
The annual fee is the amount some credit card providers charge to use a card and access its perks. This can range anywhere from £12 to £650 a year, depending on the card and the provider.
Credit cards that offer both rewards and no annual fee aren’t common, but they do exist. For example, some high-street stores and supermarkets offer no annual fee credit cards and loyalty points to help you save on your shopping.
That said, cards with the best rewards will typically charge an annual fee. So, it’s all about working out what best suits you and your spending. Would you get more value from a free card with smaller perks or a paid one with bigger rewards?
Find out more about rewards credit cards here.
It could be useful to have two separate cards to give you flexibility and help you make the most of your spending. For example, you could have one card for earning rewards such as loyalty points or air miles and a separate no fee card for back-up or emergencies.
But don’t apply for both types of cards at the same time. Wait a few months before applying for your second card. If you can show you’re a responsible borrower – by making payments on time and keeping your balance low – it could improve your credit score. This might give you access to the best no fee credit cards with lower interest rates.
One thing to keep in mind, though – having lots of different credit cards isn’t for everyone. If having more than one might tempt you to overspend, it could lead to rising debt instead of extra perks.
The best interest rates aren’t usually available with no fee credit cards. In fact, credit card providers may charge a higher interest rate to compensate for not getting an annual fee.
That said, there are fee-free 0% credit cards out there too.
The interest rate you’ll get also depends on your credit score. Typically, the best rates are reserved for those with an excellent credit score. If your credit score’s not great, you may be charged a higher rate than the advertised APR.
If you have a poor credit score, your options for a no fee credit card may be limited.
A credit building credit card might be your best bet. Used responsibly, this type of card could help you improve your credit score over time.
There are also credit building cards available without an annual fee. Make sure you check the details when reading though the card’s features before you apply.
Charlie is a senior commercial leader with close to a decade of experience across the UK’s leading personal-finance and comparison platforms. Before joining Compare the Market as Head of Commercial in 2024, he held senior commercial roles at TotallyMoney and MoneySuperMarket Group.
1 Based on the % of respondents claiming they have used Compare the Market in the last 12 months vs. other leading PCWs. Source: Savanta BrandVue Financial Services, National Representative Survey of 12,257 respondents (June 2026)
