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No Annual Fee Credit Cards
Great for emergencies and saving on card costs, there are plenty of benefits that come with a credit card with no annual fee.
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The closest you can get to free money - a no annual fee credit card can allow you to make the purchases you need without having to pay fees or interest charges.
Some of these cards also offer other benefits like balance transfers and rewards. Use this guide to compare no annual fee credit cards and find out more about the features, benefits and costs so that you find one that's right for you.
Coles Credit Card - Exclusive Offer
Coles No Annual Fee Mastercard - Exclusive Offer
0% p.a. for 12 months on purchases and balance transfers
Offer ends 29 October 2020
Eligibility criteria, terms and conditions, fees and charges apply
Coles Credit Card - Exclusive Offer
Reward your spending with Flybuys points and save with 0% interest on balance transfers and purchases for the first 12 months.
- 0% on balance transfers and purchases for 12 months
- Ongoing $0 annual fee | 19.99% p.a. purchase rate
- Earn Flybuys point per $1 spent on eligible purchases
- Compatible with Apple Pay and Samsung Pay
Compare the Best* No Annual Fee Credit Cards in Australia
A no annual fee credit card is a card that charges a $0 annual fee on an ongoing basis or waives it for the first year. While you're comparing, be sure to check the standard annual fee too.
*The credit card offers on this page are chosen from a range of credit cards available to us and are not representative of all the products available in the market. The use of the terms "best" and "top" are not product ratings and are subject to our disclaimer. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.
Compare these no annual fee credit cards
- Qantas American Express Discovery Card. Offers no annual fee for life and earns Qantas Points per $1 spent with no points cap.
- Bankwest Zero Platinum Mastercard. Save with a $0 annual fee, 0% foreign transaction fees and complimentary insurance covers.
- Virgin No Annual Fee Credit Card. Pay no annual fee for the life of the card and enjoy up to 55 interest-free days on purchases.
Interest-free spending hack
Most credit cards offer a number of interest-free days (such as up to 55) on purchases when you pay your account balance in full by the due date on your statement. This gives you a way to make interest-free purchases on an ongoing basis. If you're paying your account in full, utilising the interest-free days and not paying an annual fee, your credit card could end up costing you nothing.
Different types of no annual fee credit cards
Some no annual fee credit cards offer the basics, while others boast a range of additional features and benefits. This means you can compare credit cards that combine no annual fee with other features including introductory 0% interest rate offers, frequent flyer points, reward points and complimentary extras.
What is the best no annual fee credit card?
There isn't one "best" no annual fee credit card because everyone has different spending habits and goals that influence what card works for them. In the table below, we've highlighted some different examples of $0 annual fee cards for you to compare.
| Feature | Card | Current Offer | Annual Fee & Purchase Rate |
|---|---|---|---|
| Balance Transfer | Apply by 30 November 2020, to get a 0% p.a. interest rate for the first 12 months on balance transfers. |
| |
| Rewards | Offers the equivalent of 0.5 Flybuys points per $1 you spend on eligible purchases. |
| |
| Frequent Flyer | Earns 0.75 Qantas Points per $1 spent on everyday purchases, 0.5 point / $1 with government bodies in Australia and an additional 1 Qantas Point per $1 spent on selected Qantas products and services in Australia, uncapped. |
| |
| Travel | Offers 0% foreign transaction fees overseas and online with international merchants. Plus, complimentary overseas travel insurance. |
|
Pros and cons of $0 annual fee credit cards
As there are many types of $0 annual fee credit cards on the market, it's important to consider your financial situation and how you intend to use the card. Then you can weigh up the other benefits, costs and features to help you find a card that suits your needs.
Pros
- Save money on credit card fees. The most obvious perk of these cards is that you won't pay an annual fee. This could save you tens, hundreds or thousands of dollars over the life of the card.
- Practical and cost-effective. A no annual fee credit card can be ideal for emergencies and when extra credit is required. This means you can leave it in your wallet without worrying about it costing you when you're not using it.
- Promotional offers and deals. Some no annual fee credit cards offer limited-time promotions, frequent flyer programs and other perks you'd regularly have to pay a yearly fee to access.
Cons
- Higher interest rates. These cards typically charge higher ongoing interest rates on purchases than some other cards. This could add to your costs if you regularly carry a balance from month to month.
- Fewer extra features. While some no annual fee cards do come with rewards and other benefits, they typically boast fewer features than cards with a higher annual fee.
- Temporary $0 annual fee. Unfortunately, not all of these cards offer no annual fee for the life of the card. If your card only has a $0 annual fee for the first year, make sure you know the standard annual fee and when it will apply.
What should I consider before applying for a no annual fee credit card?
If you're interested in getting a credit card with no annual fee, ask yourself these questions to help compare your options:
- How often do you use your credit card? If you rarely use a credit card but still want one for unplanned expenses or emergencies, a no annual fee card will give you the line of credit that you need without burning a hole in your pocket when you're not using it. It can be a great option if you want a credit card for emergency purchases.
- Do you carry a balance? Some no annual fee credit cards charge high interest rates on purchases, so they're better suited to cardholders who pay their balance in full each statement period. If you do regularly carry a balance from month to month, you might want to consider a low interest credit card instead.
- Do you have existing debt? If you have existing debt, think about whether you could save more money by focusing on paying off your current debts before you get a $0 annual fee card. You could also consider a balance transfer credit card to save money on interest charges.
- What credit card benefits do you want? No annual fee credit cards sometimes have fewer perks than other options. If you're interested in features such as rewards programs and complimentary insurance, make sure you look at a range of cards and consider these factors as well as the annual fee so that you can find an option that gives you the perks you want.
- Will you use the credit card after the $0 annual fee promotion ends? Many cards offer no annual fee for a promotional period, so you should consider whether you want to use the card once this introductory period ends. If the card doesn't have a competitive interest rate or enough extra features to outweigh the cost of the annual fee, you might want to cancel the card before it applies.
- What other credit card fees and charges will you pay? While a $0 annual fee can help you save on costs, it doesn't mean you'll pay no fees or get a free credit card. As well as interest rates, make sure you check for other credit card fees that could apply, such as foreign transaction fees, late payment fees and cash advance charges. This will help you find a card that's affordable based on how you want to use it.
Citi Rewards Card - Balance Transfer Offer
Save with 0% interest on balance transfers for the first 30 months (with a 1.5% BT fee) and a $0 annual fee for the first year.Frequently asked questions
If I have a credit card with a promotional $0 annual fee offer, can I cancel the card before having to pay the annual fee?
Yes, as long as you don't have a balance on the card and cancel it before the annual fee is applied. Contact your provider to confirm exactly when it's charged, so you can arrange to cancel the account beforehand.
When will the annual fee be charged if I get a credit card that offers no annual fee in the first year?
If you have a card with a promotional no annual fee offer, the annual fee will usually be charged 12 months after you were approved for the credit card.
Is there any way to extend my credit card's annual fee waiver?
This depends on the credit card provider. For example, some providers may waive your credit card annual fee when you also take out a home loan package with them. Others may waive or refund your annual fee if you meet specific conditions, such as spending a set amount each year or being a student. Contact your provider to find out if there are any other ways you can continue to pay no annual fee on your credit card.
Is a no annual fee credit card a cheap credit card option?
A no annual fee credit card has the potential to save you hundreds of dollars on your yearly account costs, which can make it a cheaper option. If you always pay off your balance in full and can make use of interest-free days on purchases, then a no annual fee card could be very affordable. But if you carry a balance that attracts a high interest rate, the interest charges could make your credit card an expensive option. In this case, you might want to look at the potential savings you'd get from a card with a low interest rate (even if it has an annual fee).
Is a no annual fee credit card free?
There is no such thing as a "free credit card" because there is always the potential cost of interest if you carry a balance. There are also other credit card fees that may apply for certain transactions (such as cash advances or purchases made in a foreign currency). But in most cases, if you have a no annual fee card and pay off your account balance in full by the due date on each statement, you won't be charged interest and can use the card at no cost.
Are there any no fee credit cards?
There are plenty of cards with no annual fee, but there are no cards that don't charge any fees at all. Other fees include late payment fees, cash advance fees, currency conversion fees etc. However, if you choose the right credit card and use it for everyday purchases and payments, you could avoid fees.
Can I get a credit card with no annual fee for life and an ongoing low interest rate?
Yes, there are a few of these offers on the market. However, these features are generally offered on separate cards – except when one of the features is promotional. For example, a no annual fee credit card may offer an introductory low or 0% interest rate before reverting to a higher standard rate, while a low rate credit card could offer no annual fee in the first year before a standard yearly account fee applies.
I want a no annual fee credit card for travel. What other features should I consider?
To keep your travel costs down, you may want to consider a credit card with no annual fee and no overseas transaction fees or a card that offers complimentary travel insurance.
Is there a business credit card with no annual fee?
While business credit cards can offer no annual fee promotions, most of them charge high annual fees as they come with a lot of extra features. But depending on your circumstances, you may be able to claim the annual fee as a tax deduction.
Can I get a no annual fee credit card if I have lots of debt or bad credit?
Having a bad credit rating will limit your chances of being approved and getting a credit card, regardless of whether there's an annual fee. You can use our bad credit rating credit card guide to see what credit alternatives are available for applicants with a negative credit history.
To apply for a no annual fee credit card, you need to meet the bank's eligibility criteria. These could include a minimum annual income amount, Australian residency status and credit history details. If you're eligible to apply, you'll also be required to provide documents including payslips and proof of identification. The provider will then assess the details and documents you provide to determine whether you'll be approved for the account.
Pictures: Getty
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Credit Cards Comparison
* The credit card offers compared on this page are chosen from a range of credit cards finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.