Save on card costs and enjoy a wide range of benefits with a no annual fee credit card.
No annual fee credit cards let you enjoy a range of features and perks without having to pay a yearly account fee. Depending on the type of card you choose, you'll enjoy no annual fee for the life of the card or a $0 annual fee for a promotional period (such as the first year you have the card). There are also some credit cards that offer a waived annual fee on an ongoing basis if you meet specific spending criteria.
No annual fee credit cards can also give you a variety of other benefits including balance transfers, rewards or frequent flyer points and other travel benefits. Use this guide to compare no annual fee credit cards and find out more about the features, benefits and costs so that you can find a credit card to suit your needs.
Receive 12,500 bonus Velocity Points Exclusive to finder.com.au
Offer ends 13 March 2018
Eligibility criteria, terms and conditions, fees and charges apply
American Express Credit Card Offer
Exclusive to finder.com.au, the American Express Velocity Escape Card offers 12,500 bonus Velocity Points. Plus, enjoy a $0 annual fee with a low introductory rate on balance transfers.
- $0 p.a. annual fee.
- 20.74% p.a. on purchases
- 0.00% p.a. for 12 months with 1% BT fee on balance transfers
- Up to 55 days interest free
- Minimum income requirement of $40,000 p.a.
Compare the best* No Annual Fee Credit Cards in Australia
* The offers compared on this page are chosen from a range of products that finder.com.au can access to track details 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. It is not representative of any product’s star ratings and should not be taken as a recommendation of any form of credit. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.
The Best* No Annual Fee Credit Cards Comparison
Compare the features of these credit cards with no annual fees to help you find one that works for you.
- Westpac Low Rate - Online Offer. Pay $0 annual fee for the first year and save with 0% p.a. on balance transfers for 30 months.
- Citi Simplicity Card. A credit card with no annual fee for life that offers Citibank Dining Program perks and Visa Platinum benefits.
- American Express Velocity Escape. Exclusive to finder, receive 12,500 bonus Velocity points until 13 March 2018.
- Bankwest Zero Platinum Mastercard. This $0 p.a. annual fee credit card offers a concierge service, included travel insurance and 0% foreign transaction fees.
What you need to know about no annual fee credit cards
What is a no annual fee credit card?
A no annual fee credit card doesn’t charge you for yearly account maintenance, which could save you anywhere from $30 to $700 or more per year. This type of credit card can be ideal if you want to keep your costs low or can't justify paying high credit card fees.
But credit cards with no annual fee for life can charge higher standard interest rates for purchases compared to some other options. So if you regularly carry a balance from month to month, a card with a low interest rate might help you save more money than a no annual fee credit card. Some no annual fee credit cards also offer fewer additional features, so you may miss out on rewards or 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. So comparing your options, the conditions of the no annual fee offer and the features of the card will help you find the right one for you.
What types of no annual fee credit cards are available?
While some no annual fee credit cards are very basic, others offer a range of additional features and benefits. If you want to get access to other credit card features while paying a $0 annual fee, you can use the sections below to compare credit cards that combine a $0 annual fee with everything from introductory 0% interest rate offers to bonus rewards points and complimentary extras.
$0 annual fee and 0% balance transfer credit cards
A 0% balance transfer credit card that also offers no annual fee could help you save on credit card fees and charges while you pay down debt. With this type of card make sure you factor in any one-off balance transfer fees and check whether the $0 annual fee is for the first year or an ongoing feature of the account. Also note that if you have a balance transfer, you usually won't be eligible for an interest-free period on new purchases, so make sure you factor this into your budget if you plan to use the card for new payments.
No annual fee frequent flyer credit cards
Frequent flyer credit cards give you a way to earn more points through your everyday spending but usually come with high annual fees – especially if there are other travel benefits on offer. But there is a selection of frequent flyer credit cards that offer no annual fee for the first year. Depending on the card and offers available, you can also get frequent flyer cards with a reduced or low annual fee in the first year, which helps you save on costs in the short-term. You could also consider the Qantas American Express Discovery Card or the American Express Velocity Escape Card if you want a frequent flyer credit card with $0 annual fee for life.
Platinum credit cards with no annual fee
Platinum credit cards offer premium perks such as complimentary travel insurance, purchase insurance, $0 overseas transaction fees, airport lounge access and concierge services. Depending on the card you choose, you could also get a higher rate of points per $1 spent compared to regular cards. Most platinum cards have annual fees that offset the value of these perks, so getting one that has a $0 annual fee will help you get more value from the card's benefits.
No annual fee credit cards with 0% purchase rates offers
These no annual fee credit cards offer you 0% interest on purchases for an introductory period that typically ranges from 3 to 12 months or more. After the introductory period, the 0% interest rate reverts to a standard variable rate that will apply to any balance remaining from your purchases. For example, you could get a $0 annual fee card that offers 0% p.a. on purchases for the first 6 months before a standard purchase rate of 17.99% p.a. applies. As long as you paid off your purchases during the 6-month introductory period, you wouldn't be charged any interest. So this type of offer is usually popular for people who have a lot of spending to do in a short amount of time, such as around the holiday season.
Interest-free credit card spending hack
Most credit cards offer a number of interest-free days 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.
Reward credit cards with no annual fee
These cards have no annual fees and earn reward points for every $1 spent. Depending on the card, you could also enjoy thousands of introductory bonus points when you meet specific spending requirements. For example, a card may give you 30,000 points if you spend $3,000 in the first 3 months from when your application's approved. This can help you get even more value from the card when you first get it.
Travel credit cards with no annual fees and no foreign transaction fees
While most credit cards charge a fee worth between 2% and 3.5% of each transaction made in a foreign currency, some travel credit cards waive this cost. Since you're only likely to be using a travel credit card during your holiday, you could save on even more credit card fees by choosing one that also offers a low or $0 annual fee.
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 features that you need without burning a hole in your pocket while you're not using it.
- Do you carry a balance? The higher interest rates typical of no annual fee credit cards can make them expensive if you carry a balance. If that’s the case, you might want to consider a low interest credit card instead.
- Do you have existing debt? If you have existing debt, getting a no annual fee credit card could tempt you to spend more money than you can afford. Aim to pay off your current debts, or 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 suits all of your needs.
- Will you use the credit card after the $0 annual fee promotion ends? If the card comes with no annual fee for a promotional period, consider whether you want to use the card once the introductory period ends. If the card doesn't have a competitive interest rate or extra features to outweigh the annual fee cost, you might want to cancel the card before the annual fee applies. If you'd prefer to skip that hassle altogether, compare cards with a low or $0 annual fee for life.
- 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 be getting 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 and when you plan to use it.
Benefits and drawbacks of $0 annual fee credit cards
- Save money on your credit card. 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. Without the extra perks and additional benefits, a no annual fee credit card can be ideal for emergencies and when extra credit is required.
- Promotional offers and deals. Some no annual fee credit cards come with promotional offers, frequent flyer programs and other perks that you’d regularly have to pay a yearly fee to access.
- Higher interest rates. No annual fee credit cards typically have higher ongoing interest rates 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 frequent flyer programs and other benefits, they usually have 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 a promotional period, make sure you know when the standard annual fee will apply and how much it is to avoid any surprise costs.
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 type of $0 annual fee as well as the other features, benefits and costs to help you find a card that suits your needs.
Answers to the most popular questions about no annual fee credit cards
- Q: 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?
A: This is possible 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 the annual fee is charged so you don’t accidentally pay it before cancelling the card.
- Q: When do you normally pay the annual fee on a credit card?
A: The annual fee is usually charged when you activate the card. This means the fee usually shows up your first statement or first credit card bill. You can repay your annual fee in full or over time by making a payment to your credit card account.
- Q: When will the annual fee be charged if I get a credit card that offers no annual fee in the first year?
A: 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. If you don't want to pay this fee, you could ask the provider what date it will be charged and cancel the account before then.
- Q: Is there any way to extend my credit card's annual fee waiver?
A: 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.
- Q: What is the best no annual fee credit card?*
A: Because everyone has different preferences and needs, there is no one “best” no annual fee credit card. Instead, you should look at whether or not the $0 annual fee is a promotional offer or an ongoing feature and check the other costs and features that come with the card. This will help you make sure that the card gives you an affordable way to manage your finances before you apply.
- Q: Is a no annual fee credit card free?
A: Technically, 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 could also be other credit card fees that may apply for certain transactions (such as cash advances or purchases made overseas). But if you have a no annual fee card and pay off your account balance in full by the due date on each statement, you can get an interest-free period for your purchases that could allow you to use the card without paying fees or charges.
- Q: What costs would apply if I got a credit card with no annual fee and rewards?
A: This depends on the card and how you use it but some factors to consider include the interest rates, cash advance fee and foreign transaction fee. If you're comparing no annual fee credit cards with rewards, make sure you also look at full details of the annual fee – in most cases you only get a $0 annual fee in the first year before a higher standard fee is charged.
- Q: Can I get a credit card with no annual fee for life and an ongoing low interest rate?
A: Generally, these features are 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. But you can compare no annual fee and low rate cards side-by-side to help you find one that is affordable for you.
- Q: I want a no annual fee credit card for travel. What other features should I consider?
A: 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. Also, make sure that the card you're using is accepted wherever you're travelling and that it isn't restricted by economic sanctions.
- Q: Is there a business credit card with no annual fee?
A: Business credit cards can offer no annual fee promotions, but most of them charge high annual fees as they come with a lot of extra features. Compare business credit cards here.
- Q: Can I get a no annual fee credit card if I have lots of debt or bad credit?
A: Having a bad credit rating can limit your chances of being approved and getting a credit card. You can use our bad credit rating credit card guide to see what type of credit alternatives are available for applicants with a negative credit history.