A $0 annual fee for the first year is probably a deal you have heard offered by credit card companies.
Like many other promotions it is intended to help you, the customer, into switching to their card in order to save money on annual fees. This can represent a significant savings given that many credit card companies charge annual fees up to hundreds of dollars. However, before you sign on to one of these cards you should understand the difference between them an other waived fee offers. As always the best way to make the right decision for your finances is by having the most information possible and getting a new credit card is no exception to the rule.
Low Annual Fee Credit Card Offer
Enjoy a low annual fee with the ANZ Platinum Credit Card. You can also enjoy a low interest rate on purchases all year round.
- $0 p.a. annual fee for the first year ($87 p.a. thereafter) annual fee
- 19.74% p.a. on purchases
- 0% p.a. for 16 months with 2% balance transfer fee on balance transfers
- Cash Advance Rate of 21.49% p.a.
- Up to 55 days interest free
- Minimum Income Requirement of $35,000 p.a.
$0 Annual Fee For The First Year Cards
Rates last updated March 28th, 2017.
- American Express Platinum Edge Credit Card
Bonus points have been updated from 10,000 to 5,000 + no annual fee for the first year.
January 31st, 2017
- ANZ Rewards Black Credit Card
A new offer of $250 Westfield Gift Card on eligible spend plus $0 annual fee for the first year
March 1st, 2017
- ANZ Frequent Flyer
Offer extension of 25k bonus points with $2,500 minimum spend + annual fee waiver for the first year
March 1st, 2017
First Year Free And Other Credit Card Offers
First Year Free
When a credit card company offers you the first year free you have to understand that they are doing so in order to get your business. You should also realise that the card company is not going to do anything absolutely free so you will have to watch out for other potential costs of owning a specific card. Sometimes a waived annual fee offer is combined with a low interest offer on balance transfers or even purchases. While that will save you money in that first twelve months, you also have to get good rates for the life of the card. That is why you need to look at the ongoing cost of a specific card including the fees and interest rates to make certain that it will be a good card over the long haul.
Make sure that you know exactly what your ongoing annual fee will be as it could be high enough to actually cancel out your savings. There is really no point in waiving one year of a high annual fee when you could get a lower fee card to begin with and save even more or the same amount of money. While you saved money the first year you will wind up paying more then necessary in successive years if you do not choose your card wisely.
You could simply jump from one piece of plastic to another trying to avoid fees, but that's not the best financial plan. To begin with, it can be difficult to keep track of which opens the door to errors and potential costs. It is also not good for your credit file to constantly be opening and closing card accounts. Jumping around from card to card will eventually lead your applications to be denied. You are better off to build strong and long-term relationships with your creditors because that actually boosts your credit file. In the long run having an excellent credit rating can provide a high advantage for your finances. It will allow you to get better rates and consistently better credit card offers. Find a good card that meets your needs and keep track of your finances so that you can maintain a positive credit file. Then, no matter what card you want you will probably have no problem getting it.
Other Credit Card Offers
There are two other kinds of yearly charge card offers that you will come across as you look for new plastic. Both of these offer also waive that yearly charge, but in a different way then was previously mentioned. There are pros and cons to each of these options and you will need to be fully aware of them so you can make the right choice for your budget. Always keep in mind that the credit option that might be perfect for you sibling or best friend might not be the one that is perfect for you. Before you choose a card you have to understand your own financial needs and spending habits. It is only then that you will know which card is best suited to your budget and lifestyle.
For Life Cards
The no annual fee for life credit card is just what it sounds like, no yearly account charges for as long as you own the card. These cards are very appealing because of the potential to save money over the long term. However, there are some drawbacks to owning them. The first is that they tend to be no frills cards which means you probably not have access to a rewards program. Those consumers who use their cards often might want to earn these potentially valuable rewards or take advantage of other perks that are offered by more prestigious cards.
In addition you should note that most of the time if there is no yearly charge then the interest rate is a bit higher to make up for it. Those cardholders who use their card regularly and tend to rotate their balance from month to month may save more money by getting a card that charges an fee each year but has lower interest rates. On the other hand if you do not use your card often or only use it in case of an emergency then those interest fees might not ever affect you. If you are one of those people who always pays their bill in full each month then you too could save money with this type of plastic. In essence you could finance your purchases and have the convenience of credit card ownership with absolutely none of the cost.
Special Offer Cards
Some credit cards will waive the yearly charge as a special discount. These special offers come in many different forms. Some card companies will waive the yearly cost if you reach a certain spending limit on your card. Others might waive it if you have linked your credit card to an account with the issuing bank or if you are enrolled in one of their other financial products. This can be a great deal as long as the cost to take advantage of it does not outweigh what it would cost if you just paid the yearly charge on another credit card. If, for example you have to link to an account that charges costly account maintenance fees then you are actually not going to save very much money. Also, if you do not expect to spend much money on your card then you might not reach the spending limit that is required to have your fees waived. In this case you could wind up with an unexpected cost at the end of the year.
When you are considering signing up for one of these deals it is very important to read all of the fine print of your terms and conditions. Special offers can be a little tricky to understand. Small errors or a lack of understanding of how your card works could land you in a world of cost that you did not plan on which could mean a big bust to your budget. However, if you can keep up with the regulations, you could wind up saving a big chunk of change by getting a special offer card.
Using Your $0 Annual Fee For The First Year Card
Once you have procured a good credit card you will need to think carefully about how to use it during those first twelve months in order to reap the most benefit from it. Like any other credit card it is very important that you do not spend more each month then you are able to pay back. Because these cards often carry slightly higher interest rates the potential to get in over your head in debt is quite high. You should either use your card for emergencies only or use it sparingly with a plan to pay it off before the interest free period expires. If you manage to get away without spending any money on interest you will have had all the convenience of card ownership at your disposal without any of the cost that is usually associated with it.
If you find that you are unable to do this or that you are using your credit card more then you originally anticipated you may want to consider switching to something different. It may be that you will save more money by using an low interest card or that you are using your card enough to benefit from some of the perks that are offered with cards that will not waive that yearly charge. Remember that rewards programs, complimentary insurances, and purchase protections are usually not included on cards that cost nothing to own but by spending a bit of your own cash you can benefit from all of these options.
Getting the first year free can add a bit of cash to your bottom line. However, each consumer has to carefully weigh the benefits and the risks of waiving those charges. It might sound as simple as getting something for nothing, but as we all know that is not usually the case. In fact, if you do not use your car effectively you could wind up spending much more then you had planned on interest charges or in the opportunity cost of giving up perks. Before you decide to opt in to one of these plans calculate all potential costs and losses to make sure that the deal you sign on to is one that will benefit you over the long term.Back to top