Compare the Best No-Fee Credit Cards
There are various credit card offers in the market today. Some will pay you to shop by rewarding you with points or cash back, while others will offer your next trip incentives. While you can’t object to the great perks that come with credit cards, you’d prefer not to pay an annual fee to access all these perks.
A no-fee credit card can be a great option if you don’t spend a lot with your card or are a seasoned rewards strategist who wants to maximize your earnings on every purchase without paying an annual fee.
Find the Right No-Fee Credit Card for You
To find the right no annual fee credit card, you’ll need to think about how much you’ll likely spend on the card, whether you’ll clear the balance in full each month and what features match your spending habits and lifestyle.
Some standard no-fee credit cards include:
- No annual fee rewards cards. These cards let you turn your daily spending into reward points, which aren’t eroded by a yearly fee.
- No annual fee premium cards. Premium cards are typically in the upper echelon of cards when it comes to the available benefits. Such cards will help you make the most of their perks.
- 0% balance transfer cards. These credit cards let you transfer your existing debt to a new card without paying an annual fee. However, other fees like a one-off balance transfer fee may apply.
Benefits of No-Fee Credit Cards
You can have a no-fee credit card for as long as you want without worrying about the annual cost. This helps you reduce your credit utilization as well as increase your average age of accounts.
Retain More Rewards
Let’s face it; the yearly fee eats into the rewards you earn. For instance, if you get $100 in cashback but must pay a $90 annual fee, you’ve only made $10 in cash back. A no annual fee credit card means that all rewards you earn aren’t depleted.
Sign-up Bonus May Be Easier to Obtain
Although the sign-up bonus is usually smaller than that of an annual-fee credit card, you’ll typically need to meet lower spending requirements.
No-Fee Credit Cards FAQs
What is a No-Fee Credit Card?
A no-fee credit card doesn’t charge you a fee each year to use your credit card. As a result, you’ll enjoy benefits without paying an annual fee. However, these cards typically offer fewer perks and rewards.
How Do No-Fee Credit Cards Work?
No-fee credit cards let you enjoy all the benefits your card offers without remitting an annual fee. However, it would be best if you remembered that other fees may apply and they include:
- Foreign transaction fees. This is a percentage of the Canadian dollar value of a transaction made in another currency.
- Late payment fees. A late payment fee will be charged if you don’t fulfill your card’s minimum repayment by the due date.
- Balance transfer fees. You will incur a balance transfer fee if you bring an existing debt to your new credit card – usually a percentage of what you’re transferring.
What Rate Can I Get with No-Fee Credit Cards?
The rate you get with a no-fee credit card often depends on your creditworthiness. Most no annual fee credit cards offer a 0% introductory APR (annual percentage rate) for 12 months from the date you open an account. Your rate will range from %10 to 30% after the opening period, depending on your creditworthiness. This APR will vary with the market based on the nation’s overall rate.
You may also incur a separate rate for cash advances, overdraft protection advances and balance transfers.
Can Anyone Get a No-Fee Credit Card?
No annual fee credit cards are a great fit for different individuals. Students looking to build their credit while still in college, beginner credit card users and anyone who wants to avoid annual fees are all perfect matches.
While anyone can get a no-fee credit card, a good credit score will easily make you a qualifying candidate. You may get a card with a high-interest rate if your credit score isn’t sufficient to qualify you for a standard no-fee credit card.
How Do I Compare Different No-Fee Credit Cards?
A good rule of thumb is to compare different options when shopping for a no-fee credit card. While a $0 annual fee offers excellent value addition, other essential things to examine in no annual fee cards include sign up bonuses, APR rates, non-monetary perks and income requirements to qualify for the card.
You’ll also need to factor in your spending habits as you use various online comparison tools to choose a no annual fee credit card.