Compare no annual fee credit cards

What is a no annual fee credit card (and why you might want one)

Most credit cards come with a yearly fee, but you can avoid this cost by opting for a no annual fee credit card, which has removed this cost altogether.

You might want a no annual fee credit card if you plan to only use it every now and then, or you want to keep it for any unexpected expenses.

If you’re always able to pay off your credit card purchases in time, you can also avoid paying any interest, which can bring the cost of your card down to zero.

Credit cards with annual fees range from low fee credit cards that can cost around $30 a year, to more premium rewards credit cards which often cost hundreds of dollars annually.

Right, what’s the catch?

In exchange for paying no annual fees, this type of credit card can hit you with a high interest rate on your purchases if you’re unable to pay them off in time.

If you tend to carry over a balance (a debt) on your credit card every month, you may end up spending more on a card with no annual fees than you would on a low rate credit card with a yearly cost.

If this is you, factor these potential costs into your decision making – you may be better off to compare low rate credit cards instead.

You may also have limited access to perks and rewards with a no annual fee credit card, so shop around or compare rewards credit cards if you’re looking to earn points with your spending.

Do no annual fee credit cards come with any fees at all?

No annual fee credit cards don’t necessarily mean no fees ever. You may be up for costs if you use the card in certain ways.

• Late payment fees: You may need to pay this fee if you don’t make your minimum monthly repayment in time. Avoid it by setting up a direct debit or an automatic payment from your bank account. Alternatively, set up an alert or reminder.

• International transaction fees: Can be charged when you use your credit card while travelling overseas, or you purchase from international retailers. Occurs when a transaction is converted from a foreign currency to Australian dollars.

• Cash advance fees: A cash advance is when you use your credit card to withdraw cash from an ATM or at a point of sale. The fee is typically a percentage of the cash withdrawn or a minimum fee – whichever is greater. You’ll also be charged interest immediately.

• Balance transfer fees: Only applicable if you are applying for a balance transfer credit card. A balance transfer fee is usually between 1-3% of the total existing debt you are transferring.

Different types of no annual fee credit cards

There are a few different types of no annual fee credit cards, here’s an overview.

Standard no annual fee

These are credit cards that don’t have an annual or monthly fee for holding the card. Note that you may be charged a high interest rate if you can’t repay your purchases in time.

No annual fee for limited time (introductory offer)

Some providers will waive a credit card’s annual fee when you first apply. These introductory offers typically apply for your first year with the card, and revert back to the standard price after the discounted period ends.

No annual fee with conditions (minimum spend requirements)

You might see this advertised as a low fee credit card. This type of card requires that you meet certain conditions in order to waive the annual fee – typically a minimum spend.