Is a no annual fee credit card right for you?

No annual fee credit cards are an appealing option to Australian credit card owners. Often when we sign up for our first card we don't consider anything besides the interest rates and reward perks but fees do add up and if you aren't using your credit card often it can end up being just an expensive accessory.

While many of us rely on our credit cards we should not forget that cards actually cost money to own and use. Many credit cards have annual fees around the $100 mark, but some have annual fees as high as $700 per year.

So clearly it pays to consider switching to a no annual fee credit card for huge dollar savings.

Fee-free doesn't equal high interest

There is a misconception out there that if you pay an annual fee on your credit card you will be getting a better interest rate than a card with no annual fee.

But this is not always the case

Some of the top no annual fee credit cards available through RateCity have below-average interest rates compared to the broader market. Many of these low interest fee-free cards even outperform some fee-based cards in this regard.

The best advice on credit cards is that you should always pay off your balance in full every month. If that's not achievable then you need to look not only at the annual fee but also at the underlying interest rate as well.

Beware hidden costs

As with most things in life, if it seems too good to be true, then it probably is! So it's important to always understand the conditions attached to your no annual fee credit card. While many no annual fee credit cards are as cheap as they appear on the surface, some have hidden costs that can sting.

For instance, some low interest, no annual fee credit cards offer zero interest free days, which means you'll be paying interest from the moment you make the purchase, which can really add up.

But don't let this scare you off! Because a low interest, no annual fee credit card can save you hundreds of dollars over time if you choose carefully.

So visit the RateCity credit cards page now and compare credit cards to find the best option for you!

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