Factors to Consider When Selecting a No Annual Fee Credit Card

Unlike several years ago, it is now possible for you to have and use a no annual fee credit card. The first no annual fee credit card was introduced into the market in 1986.

In addition to no annual fee, many credit companies now offer many other benefits attached to the usage of no annual fee credit cards. Such benefits include specially designed benefits, quality service and other rewards such as cash back, air travel miles and points.

Unlike regular credit cards that often have an annual fee, you are not charged any annual fee with a no annual fee credit card. The annual fee is literally waived. Considering that many regular credit cards have annual fees ranging between $80 to $150, choosing a no annual fee credit card can be one of the best ways of saving money on credit card costs.

It is important to note that it can cost money to own and use any type of credit card. No annual fee doesn’t necessarily mean no fee.

Although you do not pay any annual fee with a no annual fee credit card, there are several issues that mainly relate to charges that you must consider before applying for one. First, while you are not charged any annual fee, the applicable annual percentage rate (APR) can often be very high.

Note also that many credit card companies either offer 0% APR or very low APR as an introductory offer for a period that can be as long as 18 months after which the companies raise the APR. It is therefore important that you know the level of increase after the introductory offer before you apply.

The other very important factor to consider when planning to apply for a no annual fee credit card is the number of other applicable fees and charges. In particular consider whether or not there is a fee charged when you use your card while travelling abroad. It is necessary that you take into account other fees and charges that can occur on the card since they can add up to a significant amount.

You may apply for a 0% introductory annual fee credit card thinking that it is a permanent 0% annual fee credit card.

Most introductory offers only last for 12 months, with an annual fee becoming applicable. Closely related to this are hidden charges.

No annual fee credit cards are however not for everyone. Generally you can only qualify for this type of credit card in cases where you have a healthy credit history with a good credit score.

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