Can I get a reward card that comes with no annual fees?

Posted on Wednesday, October 17, 2018 - 14:50

Having a card that rewards you with points for every time you spend can be beneficial. Most cards on the market come with an annual fee that can make cardholders weigh whether getting a card is worth it. But what if you were able to get the best of both worlds by adding reward benefits without attracting an annual fee? Here is what you need to know.

Can you get a reward card that comes with no annual fee?

Finding a credit card that comes with a no annual fee and still lets you get rewards is possible in Australia. This can be beneficial for people who are looking to save and cut down costs. However, it is vital to check the fine print to see whether the card you wish to apply for has such features.

The cost of the average reward credit card

To understand the benefits of a 0% annual fee credit card that comes with rewards you can compare it to other reward cards. For example, cardholders that want to take out an average reward credit card can end up paying anything from $0-$450 for their card.

There are 0% annual fee credit cards that offer rewards for a promotional period of one year. For example, the Bank of Melbourne Amplify Platinum card comes with 50,000 bonus points with a 0% annual fee for a year but reverts back to $99 when the promotional period is over. However, other cards like the American Express Essential offer's rewards that do not come with a no annual fee.

Will I still get the same value for my points with a no annual fee card?

This will depend on your card provider and how they rate the value of each point earned. Most cards offer $1 for each point, but some providers could either increase or decrease the value of the cards points according to their policy. This is where comparing your options can help.

What are the benefits that I can get from a no annual fee reward card?

  • Maximising the bonus points offers. Signing up for a card can open benefits such as earning sign up bonuses, but you might have to spend a certain an amount to be eligible to unlock and access your points.
  • Interest-free days for purchases. This means that for every purchase you make during the promotional period, which typically ranges from 45 or 55 days, will not be charged with interest.
  • Complimentary extras. Depending on the card that you are interested in, you will be able to access benefits such as travel insurance, purchase protection, airport lounge access and extended warranty on purchases.

One thing you can keep in mind when looking for a no annual fee credit card is the point cap that may come with it. There are some reward cards that limit the amount you can earn for each statement cycle or year. This can help you refine your search for the right card that suits you and your spending habits.

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