No Annual Fee Credit Cards

No annual fee cards are simple credit cards that help lower ongoing costs. They’re a good choice if:

• You want to save money. A no annual fee card lowers the ongoing costs of keeping a credit card to zero (as long as you avoid interest as well).
• You want a basic card. No annual fee cards tend to have fewer extras on offer, which suits those looking for simplicity, or to build a credit score.
• You don’t use your card that often. With a no annual fee card, you can use it when you need it, without paying an ongoing fee for the privilege.
• You want a credit card for emergencies. A no annual fee card is there when you need it, helping you cover unexpected costs. And when you don’t need it, you’re not paying for it.

While some cards charge no annual fee for the life of the card, others provide no annual fee deals that expire after certain criteria are met.

Here are the two types of no annual fee offers to keep an eye out for:

No Annual Fee Introductory Offer

Most introductory offers waive the first years’ annual fee. Once the time period has ended, you’ll pay the standard card fee. This type of offer can provide a great way to trial a card as a new cardholder, or see how much you benefit from the rewards it offers.

You could then cancel the card before the introductory offer expires, or continue using it if the annual fee is affordable or outweighed by the card’s rewards program and benefits.

No Annual Fee After Meeting A Minimum Spend

With this type of card, you pay no annual fee as long as you spend a certain amount on the card each year. As long as you can afford to spend this amount – and you pay it off each month before it starts accruing interest – this can provide an easy way to make use of the card’s features while saving on ongoing fees.

Yes! Although they’re a more basic form of credit card, plenty of providers still offer bonuses like rewards points, cashback and gift cards. For example, the Coles No Annual Fee Mastercard gives $100 off your Coles shopping when you spend $1500 on eligible purchases within 60 days.

You’ll also find offers on balance transfers, low purchase rates, and free additional cardholders. Easy summaries of introductory offers can be found in our comparison guide alongside each card.

Comparing a no annual fee card to the benefits of a rewards card is a totally personal decision.

You can work it out by comparing the annual fee to the rewards earn rate to calculate which one would benefit you more over the course of a year. For example, the popular ANZ Rewards Platinum credit card charges $95 annual fee and earns 2 points per $1 up to $2000 per month, and 0.5 per $1 thereafter.

22,225 points will get you a $100 Woolworths gift card (although points can be spent on travel and merchandise at various rates), so you’d need to spend around $926 per month on your card to outweigh your annual fee with a gift card redemption.

Typically, the higher the annual fee, the better the rewards, so you’ll need to run some comparisons on rewards cards to see if it’s a good fit for you.

Plenty of no annual fee cards offer zero fees for a balance transfer, and an introductory 0% rate. Be aware that it’s common for balance transfers to have a high purchase rate or the cash advance rate applied after the waived period. If you can set up a plan to pay off your debt within the 0% timeframe, you’ll have paid no interest and no fees for the privilege of being debt-free.

Compare the options on the best Qantas and Frequent Flyer comparison guide and select the arrow to sort by annual fees. You’ll find most cards with great frequent flyer incentives also charge higher annual fees, but providers regularly offer bonuses or 12-month no annual fee offers.

The American Express Velocity Escape Credit Card and Qantas American Express Discovery Credit Card are solid performers who usually offer low or no annual fees and reasonable frequent flyer earn rates, and are worth checking out.

Also look for:

Bonus points offers: some cards offer big sign-up bonus points, although the annual fee waiver is most likely to be for the first 12 months, and can be quite high thereafter.

Points per dollar: a no or low annual fee card with frequent flyer points may have a lower earn rate, such as 0.75 points per dollar rather than 1 or 2.

Other benefits: many credit cards offer other bonuses like discounts on merchandise and entertainment, free travel insurance and perks on holidays and car hire. Sometimes the perks can outweigh the annual fee, so make sure you’re choosing a card that benefits your lifestyle.

No annual fee cards still attract the same penalties and fees as other credit cards, including:

Cash advance fees: you should always avoid withdrawing cash from your credit card because it attracts interest immediately, which will hurt your wallet more with the higher purchase rates attached to most no annual fee cards. Some cards charge up to 22% interest on cash advances, so it’s best to avoid the practice altogether.

Late payment penalties: if you’re late on your minimum payments, you’ll be charged a late fee as per standard credit card custom. You can avoid this by setting up automatic payments from your bank account. Many providers give you the option to autopay the full amount each month so you never have to pay interest.

Currency conversion fees: when you buy from an overseas merchant or you’re travelling internationally, your spending may include a foreign exchange fee, usually a percentage of the purchase amount. Some providers waive this fee, so check the card’s terms and conditions if you’re a frequent global spender.

Once you’ve found a card that suits you using our comparison guide, you can click through to the provider’s online application form and apply directly.

You’ll need to provide some details like identification, bank statements, and payslips, and meet certain eligibility criteria such as age and proof of residency.