Pros and cons of no fee credit cards



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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. 

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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