With the sheer volume of choices available to credit card users, trying to settle on one specific card is a tough decision. You'll be tempted to get a card with rewards, air miles, cash back or various other perks offered by credit card companies.
As you start comparing credit cards, you'll notice that many of the rewards credit cards come with annual fees, and some of these may cost you over $100 yearly. If one intends to use a credit card often, the rewards collected will often justify the fee. What if you want to use the credit card occasionally or carry it just for emergencies?
In such cases, a no annual fee credit card will make sense. As you continue to shop for the best credit card for your needs, you'll likely notice no annual fee credit cards sometimes do offer some incentives and also have competitive interest rates. It is possible to get a credit card that combines some good features such as cash back rewards without paying an annual fee.
However, be aware that some no annual fee credit cards may just waive the fee for a limited amount of time. For example, there are credit card companies that will offer you a no annual fee for a year and charge you fees after that time is up. You may also find your fee is waived annually due to a special promotion or discount offer.
It is also important to check for a suitable rate of interest. You don't necessarily want to save on the annual fee only to be charged a higher interest rate. You'll have to decide if the interest rate combined with the savings on the annual fee makes financial sense for your spending habits.
By carefully examining the terms and conditions of these no annual fee cards, and comparing them to alternatives, credit card shoppers will be able to make the right choice.