No Annual Fee Credit Card

A wide variety of companies offer credit cards with a no annual fee credit card are available. Compare credit cards for FREE with our Credit Card Chaser! Finding the right card for your needs begins with looking at the fees and charges associated with the card. Credit cards have two basic options available: cards with an annual fee and cards without an annual fee.

What is an Annual Fee?

In simple terms, an annual fee is a service charge the credit card company adds to your account for the use of the card. Whether or not a card has an annual fee or not depends on the company, the bank or the specific card you are applying for.

The credit cards that charge a service fee range in the yearly charge. Credit card annual fees range between $18 and $150 a year, depending on the specific card.

Credit Card Annual FeeFortunately, out of the many credit cards available, numerous cards do not charge an annual fee. It is not necessary to pay an extra $18 to $150 a year just for the privilege of using a credit card.

Credit card customers should keep in mind that some of the companies with an annual fee might offer an introductory deal that eliminates the first year’s annual fee. Though it will not charge for the first year, the card is still considered an annual fee credit card because it charges a fee after the introductory period.

No Annual Fee Cards:

Any credit card that does not charge a yearly service fee is considered a no annual fee credit card. points out that as of 2009, 31 out of 39 credit cards did not charge an annual fee. Since approximately 79% of credit cards do not charge a yearly fee, you can find something that suits your personal needs and wants.

Special Offers on Credit Cards without Fees:

Part of the reason credit cards with an annual service fee seem better than cards without a fee is the available deals and credit card rewards. Many annual fee credit cards offer good rewards programs for customers. While it might seem like a better deal, the fact is that many no annual fee credit cards also offer great rewards or special offers.

Offers Available for No Annual Fee Credit Cards

There are many potential offers for a credit card signup of a no annual fee credit cards! One should take the time to properly compare credit cards and find the best one for their particular need. Then, look for some great rewards to go along with that credit card!

  • Zero Percent APR Offers: This particular offer means that clients do not pay any interest on the credit card for the specified time period, which is usually around six months to one year long.
  • Zero Percent APR on Balance Transfers: A balance transfer credit card with no annual fee allows any client to transfer the debts of other credit cards for a low rate and then avoid interest on the balance transfers for the specified time period, which often ranges from six months to two years. Most balance transfer credit cards will charge a three percent transfer fee.
  • Rewards Credit Cards: Anyone looking for great rewards on a credit card, such as frequent flyer miles at an airline, gadgets or special rates at hotels, can find a rewards credit card that does not charge a yearly service fee.
  • Cash Back Offers: A cash back offer on a credit card is a specific type of reward that relates only to cash. In this particular deal, clients pay for purchases and receive a specific amount back depending on the type of purchase. For example, buying gas with the credit card might give back one dollar for every ten spent while groceries might only give 50 cents for every ten dollars spent.
  • Cash Advance Offers: Some credit cards offer special rates on cash advance options, such as a zero percent APR rate on money taken out in a cash advance or a three percent rate on cash advances. This type of credit card deal is ideal for clients who need cash rather than a card.

It is clear from the various available offers that having an annual fee does not necessarily mean it offers better deals. Many credit cards without an annual fee offer rewards that might suit your personal needs or credit card usage. Use our credit card chaser to find the best credit cards TODAY!

Terms on Deals and Offers:

Depending on the type of no annual fee credit card, some terms and conditions might apply to the special rate or deals offered at the time clients apply for the card.

The most common condition is placed on any cards with a special low introductory interest rate on balance transfers, the credit card interest or cash advances. In many cases, the special offer is null and void if a credit card payment is late or not paid in full. If a late payment occurs, many credit card companies will apply the interest rate stated in the contract after the introductory rate, which is usually around 14 to 20 percent for many cards.

Some credit cards will state in the terms and conditions information that the company can change the rate at any time. Customers should note this condition and any factors that might cause the rate to increase, such as late payments or charging beyond the card limit.

Most rewards credit cards will not have the same conditions applied to the card. Since the card focuses on the rewards like frequent flyer miles or cash back, it will have different rules and regulations. In general, if clients miss a payment on a card that does not offer low introductory rates, the basic interest might rise beyond the original amount.

Interest Rates

Credit cards that do not require an annual fee still charge interest on the card. The interest rate is highly variable between credit card holders, but some averages are commonly seen around the country. Try our FREE Credit Card Interest Calculator and save!

Once a low introductory rate is completed and the company starts applying the interest to the credit card, most individuals will pay a relatively high amount for the interest. The average interest rate for credit cards is 14.67 percent. Though 14.67 percent is the average for Americans around the country, the actual rate for any individual can range between four percent and 22 percent for most credit cards.

The main factor that influences a credit card interest rate is an individual credit score and credit report. Credit card companies often offer lower interest rates for great or excellent credit scores while a low credit score will usually result in a higher interest rate.

While a personal credit score is a major factor in the interest rate, customers who always pay the card on time might obtain a lower interest rate by calling the company and requesting lower interest. Some companies will apply a lower rate if asked after paying the card on time each month and never missing a payment.

Added Charges

Though a credit card does not have an annual fee, it will still have some added charges to pay attention to when looking over the terms and conditions of the card. Make sure your credit card payments are always on time and never overcharged!

The two most common fees associated with the card are late fees and fees for charging beyond the credit limit. The amount charged for late fees will vary by card, but usually will not exceed $39 according to The website continues by pointing out at the average late fee is around $28. Over-limit fees on a credit card also vary, but the average is around $29 for most credit cards.

Shred Credit CardsCredit Card Examples

Numerous credit cards are available that do not charge an annual fee. Most bank-issued credit cards are free of annual service charges and many credit cards obtained directly from the company do not charge a service fee. Consumers must take care to always check for annual fees, particularly when looking at a card that is not a Visa or Mastercard.

Another consideration is the type of card. Many Platinum and Gold cards will add an annual fee due to the type of card rather than the company. Taking a moment to look for annual fees will prevent accidentally applying for a card that charges each year.

Final Thoughts on No Annual Fee Credit Cards

It is not necessary to pay a yearly fee for using a credit card. No annual fee credit cards are available with similar rewards and special introductory offers that suit almost any personal need or want. It is possible to save money on your credit card while also getting the type of service you prefer in a credit card. Just like any type of credit card, you should read the information about the card thoroughly to determine if it is the best for your needs before applying. Find your credit card for FREE with our Credit Card Chaser! Stop debating which credit cards is the best and let us find the best one for you!


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Disclaimer: This content is not provided or commissioned by American Express, Visa, MasterCard, Discover, or any other credit card company or issuer. The opinions expressed here are the author's alone, not those of any credit card company or issuer, and have not been reviewed, approved or otherwise endorsed by any credit card company or issuer. Credit Card Chaser may be compensated through various affiliate programs with advertisers. As always, Credit Card Chaser is an independent website commmitted to helping people research credit card offers and find the best credit card!