As the name suggests, no annual fee credit cards don’t charge a yearly fee. One of the biggest ongoing fees of any credit card is the annual fee, and a no-annual fee credit card is designed to help you keep costs down.
In some instances, annual card fees may be waived for an introductory period of time. Otherwise they’ll be waived for the life of the card. Keeping fees low is one option that young Australians in particular have to ensure they can maintain their first credit card bills comfortably.
Annual fees are typically charged for account maintenance or to support features like frequent flyer programs, rewards programs and complimentary perks. So if you know you’re a big spender or a reward points addict, no annual fee credit cards may not suit your spending style.
However, if you always pay your credit card statement on time and never incur interest charges, you may find that an annual fee is the only credit card cost you pay. In this instance, it may be worthwhile to consider a no-annual fee option.
Before you apply, think about how often you use your credit card. If you’re looking for a backup credit card for those ‘just in case’ moments, or you really don’t use it that often, a credit card with no annual fee may suit your needs.