There may be several low interest credit cards, but most consumers expect to pay some type of fee on their credit cards when a balance is carried. According to the New York Times, credit card company Discover is known for not charging any type of fee. Almost every unsecured credit card currently on the market qualifies as being a no fee credit card.
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Some credit card issuers promote no fee credit cards in their advertisements, but this is usually just references not charging a credit card annual fee. As long as the credit card issuer you are partnered with does not enforce any type of membership or maintenance, you can utilize your credit card freely without incurring any additional charges.
Can you get a credit card with no fees if you have bad credit?
It is common to find more secured credit cards that charge a wide range of fees than when compared to unsecured credit cards. Besides needing to pay a deposit, numerous secured credit cards require users to pay activation, setup, and monthly convenience fees. As secured credit cards are issued to consumers with credit problems or no credit history, issuers feel that they have a right to collect more money from high credit risk customers.
This does not mean that it is impossible for those with poor credit to get an unsecured credit card or avoid paying fees, but it is much more difficult. In order to qualify for a no fee credit card when you lack credit, working with a credit union may be best.
The Credit Union National Association has an online search tool that can be accessed by anyone looking for a credit union to join.
What are the names of some no fee secured credit cards?
In addition to applying for no fee secured credit cards, consumers can also use prepaid credit cards if they want to avoid extraneous fees. With prepaid credit cards, there may be some initial fees to setup the account and load money onto it, but there will be absolutely no interest due.
The Applied Bank Secured Visa Gold card only has fees if you don’t pay off the balance in full each billing cycle. This means that cardholders know exactly what to expect when they receive their credit card statements each month.
There may also be no fee secured credit cards that are backed by credit unions and smaller banks. These financial institutions usually do not advertise their products and services on a national level. You may want to start checking around with local credit unions to see what types of credit cards are available to you. Even if you are not able to find a credit card with no fees, you can always request to have the yearly maintenance fee waived if you have a consistent payment history.
Can you be charged fees with a no fee credit card?
Just because a credit card has no fees does not necessarily mean that you will not pay any charges. Within the terms and conditions of every major credit card, you will find clauses, penalties, and fees that can be charged when the cardholder violates his or her end of the agreement. For example, consumers that default on any type of credit card may be held liable for collection costs, legal fees and other miscellaneous charges.
Credit card terms can also be changed when a company is sold or laws change. While you do have the option to close your credit card account at anytime, you will be required to consent to all changes within your credit card terms and conditions if you want to keep your account.
The main reason that cardholders incur fees on no fee credit cards is when they make their payments late, do not pay the full amount due, or experience credit card billing errors. You should always ask to have any fee that you view to be excessive waived as a courtesy, but realize that your request will not always be honored.
While looking for no fee credit cards, make sure that you ask as many questions as possible before submitting an application. Even if your credit card does not come with an application fee, an annual fee or late payment charges, there will eventually be a time when you notice a fee on your billing statement. The best way to avoid fees on credit cards is to pay them off in full each month.
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- Where can I find unsecured credit cards for people with bad credit?
- Are there any no history credit cards?
- FirstLight Federal Credit Union Secured Visa Platinum Credit Card
- GTE Federal Credit Union Visa Secured Credit Card
- S.C. State Credit Union Visa Secured Credit Card
- Vons Employee Credit Union Share Secured Visa Platinum
- Dupage Credit Union Visa Credit Builder Secured Credit Card