In Australia’s competitive credit card market we are accustomed to seeking out the fine print and questioning anything that sounds too good to be true. So when lenders start offering no fee credit cards, what’s the catch?
If you are a smart spender, someone who uses a credit card for its purchasing convenience and always pays off the debt before the interest free period, then perhaps you could make a no free credit card work for you and save you a bucket load.
However, if you are more incline to use your credit card on big nights out, impromptu shopping sprees or tend to be a little late on your monthly repayments, then you should consider the zero fee interest credit card more carefully.
Zero fee credit cards often come with a higher interest rate, or no reward program. This is something to consider if you don’t pay off your credit card straight away, or are intested in cash back, travel points or merchandise rewards. Also, you may be tied down to a strict credit limit or a higher balance transfer rate than other “no frills” cards.
To delve between the sheets and get to the bottom of your credit card woes use RateCity’s credit card comparison tool and find the best card for you.