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A credit card with no annual fee, when paid off in full by the due date, means you could pay nothing for your card. Many cards offer a $0 annual fee just for the first year, but there are a bunch that have no annual fee for the life of the card, too.
A no annual fee credit card allows you to buy what you need without having to pay a yearly fee for the account - the closest you can get to free money.
This makes a no annual fee credit card great in case of emergencies and can save you from paying for a card you don't really need. Some no annual fee cards also offer balance transfers, rewards and other benefits. Plus, they're an easy way to start building your credit score.
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 credit card purchases without interest charges, on an ongoing basis.
If you pay your account in full, make use of interest-free days and don't have an annual fee, your credit card could cost you nothing.
Some no annual fee credit cards offer the basics, while others boast 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.
There isn't one "best" no annual fee credit card because everyone has different spending habits and makes use of different features. In the table below, we've highlighted some examples of different $0 annual fee cards for you to compare.
| Feature | Card | Current Offer | Annual Fee & Purchase Rate |
|---|---|---|---|
| Balance Transfer | Apply by 21 August 2022, to get a 0% p.a. interest rate for the first 30 months on balance transfers with no balance transfer fee. |
| |
| 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 1.75 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. |
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As there are different types of $0 annual fee credit cards on the market, it's important to consider your financial situation and how you plan 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.
If you're interested in getting a credit card with no annual fee, ask yourself these questions to help compare your options:
Yes, as long as you don't owe any money on the credit card, you can cancel it over the phone or online before the annual fee is charged. Just check your account details or contact your credit card provider to find out exactly when the annual fee is charged, so you can arrange to cancel the account before that date.
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.
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.
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 compare credit cards and look at the potential savings you'd get from a card with a low interest rate (even if it has an annual fee).
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.
There are plenty of cards with no annual fee, and there are even some cards with no interest. 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 make payments in full, you could avoid fees.
Yes, there are a few no annual fee, low rate credit cards on the market. You can use the filters on Finder's comparison table to narrow down your search based on rates, fees and other features you want. But keep in mind that, $0 annual fees and low rates 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.
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.
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.
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.
Pictures: Getty Images
Back to topMake the most of credit cards offering $0 annual fee in the first year and learn about other ways to save on this yearly cost with this guide to annual fees.
Share your credit card with a partner or family member but watch for extra costs. Compare cards and learn more about credit cards that offer free additional cardholders.
Compare no annual fee rewards credit cards and earn points on all eligible purchases without paying a yearly fee.
Save with low annual fees, competitive interest rates and modest credit limits with a no frills credit card.
Looking for a credit card with no annual fee and reward points on purchases.
Hi Colin,
Thank you for your comment.
You may compare no annual fee credit cards with rewards. These types of cards will let you earn points on purchases, which you can redeem for flights, cash, or merchandise, get access to extras such as complimentary travel and purchase insurance, airport lounge access, and personalised concierge services. Check the types, the benefits, and what you should consider in choosing rewards credit cards with no annual fee.
Please make sure to meet the eligibility criteria before submitting an application (hitting the Go to site button). Hope this helps.
Regards,
Jhezelyn
What about ING credit cards ?
Hi Terry,
Thank you for your inquiry.
Should you need to know more, please check our article about ING credit card products.
I hope this information has helped.
Cheers,
Harold
What about insurance for fraudulent transactions. I had my Visa card stolen in Rome and, within 20 minutes, over $A3400 in cash withdrawn. My bank covered it all and advised me most of my annual fee was insurance premium. This worked out at over 20 years worth of annual fees and saved our holiday. I no longer view annual fees as an unnecessary or unwarranted expense.
Hi Eddy,
Thanks for your question.
Most of the major credit cards nowadays have their own version of fraud protection like the Visa’s Zero Liability Policy and MasterCard’s Zero Liability Agreement. As long as you meet the conditions, you will not be held liable for those fraudulent transactions on your card. If you want to find more information on what you can do when your credit card is stolen or lost, please read our stolen credit card guide.
Hope this helps.
Cheers,
May
Hi I am wanting a credit card that will give me maximum Qantas frequent flyer points on sign up and no annual fee in the first year…any suggestions??
Hi Nanette,
Thanks for your question.
Please check the Qantas frequent flyer credit cards featured on our website to compare credit cards that offer bonus Qantas points. You can also check the annual fee for each card on the same page.
Cheers,
Anndy
Hi:
I just want to know which VISA credit card will give me an identity with no annual fee. like with which card I can get subscription in iTunes or youtube???
Thanks
Hi Azam,
Thanks for your question.
If you are looking to apply for a Visa credit card with no annual fee, you can check the list of Visa credit cards featured on our website. Among those listed with no annual fee are Virgin Credit Card and Citi Simplicity Card.
Cheers,
Anndy