With plenty of credit cards with no annual fee on the market, there is no such thing as a one-size-fits-all card. Here’s how you could choose the right card for you:
Ask yourself what you’ll use the card for
Are you a big spender? Bonus points chaser? Planning an overseas trip? Wanting to consolidate debt? Before you apply for a credit card with no annual fee, factor your spending habits and specific financial situation into the equation. For example, most rewards credit cards tend to come with an annual fee as this helps to fund the rewards program. It may be difficult to find a no annual fee rewards card.
Compare card types
Would you benefit more from a Visa, Mastercard or American Express? It's worth comparing the different card types to see what better suits your financial situation.
Compare interest rates
The purchase rate charged on a credit card is one of the biggest charges to consider. If you’re getting a no annual fee credit card to keep costs down, you’ll want to also consider if a low interest rate credit card would suit your financial situation.
Compare other fees
As mentioned above, just because you’re not being charged an annual fee doesn’t mean you won’t be charged in other ways. Perhaps there are other fees you're looking to avoid besides an annual fee?
Calculate the potential costs of keeping your credit card for a year or two against the minimum credit limit and maximum credit limit. Then compare this to your spending profile and budget to see which credit card may suit.
Compare features and perks
Just because you're looking for fee free credit cards, doesn't mean you can't find one with helpful features and perks. This could mean a card with a high number of interest free days, one with a competitive balance transfer offer, a 0% interest rate introductory offer for the first year of the card, complimentary insurance, a high credit limit, and more. You may also want to look at a card that can be bundled with other credit products, like a home loan.
Eligibility criteria
Before you make a card application, read the terms and conditions, product disclosure statement for a greater breakdown of any eligibility criteria you may need to meet to be approved for a credit card, as well as potential fees, costs and eligible purchases to earn rewards points.