The pros and cons of a no annual fees card

Last updated on November 25th, 2021
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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There are plenty of credit cards to choose from in the credit card market. A no annual fee credit card is one of those cards that might look like a catch if you are looking for a credit card. However, if you do not read the fine print you could end up with a card that is not good for you. Here is what you need to know when it comes to the pros and cons of a no annual fee credit card.

What is a no annual fees credit card?

A no annual fees credit card is a card that does not charge an annual fee. Most credit cards come with an annual fee that can range from $25-$500. Your annual fee can also be affected by the type of features that you add to your card. This type of card can come in handy if handle responsibly. It is vital that you read the fine print to see if it will work out for the type of spender you are.

The benefits of a no annual fees card

no annual fees credit card is designed for people who are smart spenders. This means that you use your card a lot, in a structured manner, to take care of your expenses but you are also looking for something that is economical to suit your needs. If you are a person who pays off your debt on time before the interest free period kicks in and you structure your spending for convenience, then this could be the card for you. It can also help you save in the process.

The pitfalls of a no annual fees card

This is a type of card that works according to the type of spender you are. If you are a sensible spender who plans to use the card to take care of emergencies, then it can be of great use, but for people who constantly use the card to take care of expenses that are not deemed emergencies you could find yourself in trouble. A no annual fees credit card can come with a higher interest rate due to the lack of fees. It can also come with an interest-free period that you need to be aware of to avoid paying more in interest. It can also have a limited range of reward program incentives.

Read the fine print and compare

To make the card work for you instead of the other way around it is important that you read the small print and compare your options. It is possible to find a lender that is willing to waive the annual fees for the life of your card, but you will have to weigh the implications of this decisions and whether it will suit you financially. If you are planning to use such a card for a limited period, then it will be in your best interest to see how you can use the introductory period to benefit you befo

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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