September 20, 2018

Understanding No Annual Fee Credit Cards

Credit card companies offer different deals and features that can save you money. You can choose a card with low interest rate, with minimal annual fee or no annual fee at all. Credit cards with annual fees offer lower interest rates and better rewards program. So instead of saving bigger amounts, you receive incentives when you use your card. Credit cards without annual fees can also make you save even with their higher rates. Even though rewards are uncommon, they can give you 0% rate for a certain number of days. But still, it all comes down to how you spend with your card. It pays to compare credit cards and weigh your options.

No annual fee credit cards are a better choice for people who don’t use their credit card or pay their accounts in full every month.

No annual fee credit cards are a better choice for people who don’t use their credit card or pay their accounts in full every month.  To give you an idea: Northern Inland Credit Union Visa credit card offers 8.99% interest rate and 2% minimum repayment. Unibank Visa credit card has 11.5% rate with maximum free days of up to 55. On the other hand, Teachers Mutual bank credit card offers 7.9% for the first three months, then 11.5%, and minimum repayment of 3%.

A credit card with no annual fees has its own share of advantages. This is perfect for sensible spenders.  Also, it is a good choice if you only use it for emergencies. This means that if you keep your balance to a minimum, the costs that go with your card will be lower. However, cards without annual fees have fewer rewards program incentives and are likely to have higher interest rates to cover the lack of fees.  But the good news is, interest-free periods are offered from time to time.

Some credit cards offer to waive your annual fee for an introductory period like My Credit Union Low Rate Visa which offers 7.99% rate with no annual fee on its first year, $59 on succeeding years. St. George Vertigo Platinum Card waives annual fee for the first year, and an interest rate of 12.74%, and complimentary insurance for overseas travel for six months. On the other hand, First Option Credit Union has an introductory offer of 1.99% for six months, then 11.99%.

These are some of the things that you need to know about no annual fee credit cards. Make sure to compare the features of different offerings so you can get the best credit card deals.

Got other ideas on how to get the best credit card deals? Share your tips in the comments section.

About the author  ⁄ Marxa Dillan

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