No Annual Fee Credit Cards

A no annual fee credit card is one which comes with an annual fee of $0. An annual fee is charged each year, so in this case there is $0 fee each year, or for the life of the card – unless the issuer was to change the terms and conditions in the future.

These cards will give you one year without charging an annual fee, but you should expect a fee to appear on the first statement of the second year you have the card – i.e. after you have had the card for 12 months.

No annual fee credit cards may come with an interest free period, and this is usually up to 44 days or up to 55 days, and some cards have odd numbers of interest free days.

Interest may be charged from the date your statement is prepared, or from the date you made a purchase (check the card’s terms and conditions to find out which).

After your next statement is issued, if you have not paid off the whole purchase amount for the previous period, interest will be charged on that purchase.

Remember that payment may sometimes take up to 2-3 business days, so keep this in mind and make sure it reaches the credit card before the payment due date.

Click the link to learn more about how interest free days work

The no annual fee card was designed for people who do not carry a credit card debt. Because of their structure, these cards might not suit someone who is looking for a lower interest rate so they can pay down credit card debt more quickly. Balance transfer credit cards exist for that purpose, as the banks compete for new business by offering a lower rate to non-existing customers with debt to pay off.

Banks designed no annual fee credit cards for occasional or one-off use by customers who have no existing credit card debt. That is their main purpose. They are a convenient way of paying, or for use in an emergency.

People in this situation don’t have to be concerned about the interest rate they will be charged on purchases, and don’t want added features with their credit card. They don’t plan on carrying a balance.