A no frills credit card is a cheap, basic credit card that doesn't earn you points on your spending or offer any perks like travel insurance.
These cards keep it simple with a low or $0 annual fee and a low interest rate. They offer a cheap way to spend money that's more flexible than a debit card.
There's no exact definition of a no frills credit card and there are actually multiple types of cheap, simple cards on offer.
4 types of no frills credit cards
Even though these cards are basic, there are a few different types of cards you can choose from.
No annual fee credit cards. If you don't spend much or only have a credit card for emergencies, a no annual fee card could help you reduce your yearly costs. These cards offer an ongoing $0 annual fee or waived annual fee in the first year. Whereas a credit card with more features and benefits could have an annual fee between $200 and $400.
Low interest rate credit cards. These cards charge low purchase interest rates typically ranging from 8.99% p.a. to 14.99% p.a. (compared to rewards and frequent flyer cards that have rates of around 20%). These cards save you money if you carry a balance each month (in other words, you don't repay your spending in full each month). This saves you on interest charges.
0% purchase rate offers. Some credit cards also offer 0% interest on purchases for a promotional period, typically between 6 and 14 months. While these credit cards aren't always no frills options, the introductory 0% interest rate does give you a way to save on upcoming expenses or big ticket items. Just be aware that a higher, ongoing purchase rate will apply if you don't pay off the balance during the interest-free period. These cards are a good deal in the short term, but not as competitive once the 0% offer ends.
No interest, flat fee credit cards. If you want a credit card but don't like the idea of paying interest, these credit cards offer no interest and charge a monthly fee instead. This fee ranges from $10 to $22 depending on the card and your credit limit, and is usually waived if you pay off the full balance by the due date on your statement or haven't used the card at all. Apart from the monthly fee, these cards have very few other costs and offer low credit limits and basic features. Because they don't charge interest ever, they're often compared to buy now pay later (BNPL) services.
Our expert says: Different no frills cards for different thrills
"If you don't use your card very often, don't spend much and always pay it back, a no annual fee credit card may be your cheapest option. But if you need the card to cover monthly expenses and you know you can't always pay the card off in full, a card with a lower interest rate (or even a flat fee or no rate card) could save you more."
Lower fees. No frills credit cards typically charge low or $0 annual fee, which helps you cut down on yearly credit card costs.
Low interest rates. Choosing a no frills, low rate card can help you save on interest charges if you carry a balance.
Simple features. No frills credit cards don't have any bells and whistles, which can make it easier to use and manage the account.
Build credit. A basic credit card is a great choice for your first credit card, when you may not have much credit history yet. You can pay the card off on time and build credit history.
Cons
Limited features. No frills credit cards don't offer rewards points, complimentary insurance or other extras.
Less potential value for money. If you are a big spender and frequent traveller who always pays off your monthly account balance in full, you’ll probably get more value from using a frequent flyer credit card.
Limited spending. While a low credit limit could help curb your spending, it could be a problem in times of emergency or when you want to make a large purchase.
Is a no frills credit card right for me?
If you only want to spend money you've already got and don't need to worry about debt, you could just stick with your bank account's debit card. There's no card fees or interest charges to worry about. And no debt.
If you earn decent money and have a lot of expenses, a rewards or frequent flyer credit card could earn you enough points to outweigh the higher annual fee. As long as you pay it back on time to avoid hefty interest charges.
No frills credit cards are really for people who need a little more flexibility than a debit card but don't need the full bells and whistles of a more expensive card.
Amy is an experienced journalist with over 16 years of experience, contributing to major publications like Money Magazine, The Sydney Morning Herald, and ABC News Australia. Specialising in personal finance, she frequently appeared in media outlets and on radio. Amy holds a Bachelor of Arts in Journalism and Drama from Griffith University and earned RG146 certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, ensuring her expertise is grounded in current financial regulations. Amy was Finder's Senior Writer for Credit Cards from 2016 to 2024. See full bio
Amy's expertise
Amy has written 542 Finder guides across topics including:
Richard Whitten is Finder’s Money Editor, with over seven years of experience in home loans, property and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Graduate Certificate in Communications from Deakin University. See full bio
Richard's expertise
Richard has written 608 Finder guides across topics including:
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