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No Annual Fee Credit Cards with Rewards

Discover how you can earn points and keep costs low with a no annual fee rewards credit card.

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The perks available with rewards credit cards have made them a popular product. Not only can you earn points that you can redeem for flights, cashback or merchandise, you can also get access to extras such as complimentary travel and purchase insurance, airport lounge access and personalised concierge services.

Unfortunately, most rewards credit cards also have high annual fees that cover the cost of these benefits. But there are a handful of cards available that have no annual fee and offer rewards. Here, you can compare your options and find out more about no annual fee rewards cards and how to compare them.

American Express Credit Card Offer

Qantas American Express Discovery Card

$0 annual fee

Eligibility criteria, terms and conditions, fees and charges apply

American Express Credit Card Offer

Earn uncapped Qantas Points on purchases and pay $0 annual fee for the life of the card.

  • Earn 0.75 Qantas Points per $1 spent (0.5 points / $1 with government bodies in Australia)
  • Purchase interest rate of 20.74% p.a. with up to 44 days interest-free
  • 3% foreign currency conversion fee
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A comparison of no annual fee credit cards with rewards points

Updated April 5th, 2020
Name Product Bonus Points Rewards program Rewards Points per $ spent Purchase rate (p.a.) Annual fee
Qantas American Express Discovery Card
Qantas Frequent Flyer
20.74% p.a.
$0 p.a.
Earn uncapped Qantas Points on your purchases and pay $0 annual fee for life.
Coles No Annual Fee Mastercard
19.99% p.a.
$0 p.a.
Earn flybuys points for your spending and save with an ongoing $0 annual fee and 0% p.a. on balance transfers for 18 months.
American Express Velocity Escape Card
Velocity Frequent Flyer
20.74% p.a.
$0 p.a.
Earn uncapped Velocity Points on purchases and save with a $0 annual fee for life.
ANZ Platinum Credit Card
20.24% p.a.
$0 p.a. annual fee for the first year ($87 p.a. thereafter)
Receive a 0% p.a. for 18 month balance transfer offer and a $0 first year annual fee. Plus, complimentary overseas travel and medical insurance.
Woolworths Everyday Platinum Credit Card
Woolworths Shopping Card Rewards
19.99% p.a.
$0 p.a. annual fee for the first year ($49 p.a. thereafter)
Save with a 0% p.a. on balance transfers for 14 months and a $0 first-year annual fee.

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Types of no annual fee rewards credit cards

These are three main types of rewards credit card with no annual fee:

  • No annual fee rewards cards. These cards usually offer points as part of a credit card rewards program such as Westpac Altitude Rewards or St.George Amplify Rewards. These programs offer rewards that usually include travel, merchandise, cash and point transfers to frequent flyer programs.
  • No annual fee frequent flyer credit cards. Frequent flyer credit cards offer great rewards for regular globetrotters. These are similar to rewards cards in the way they earn points per dollar spent, except that you can only redeem your points within the frequent flyer program of that specific airline. A few frequent flyer credit cards charge no annual fees, including the American Express Velocity Escape and Qantas American Express Discovery Card.
  • Promotional offer rewards cards. Some frequent flyer and rewards credit cards may come with a waived or reduced annual fee during the first year. You typically have to pay the full annual fee from the second year onward. This makes it important to look for details or disclaimers on any promotions so that you’re aware of any ongoing costs that apply after the first 12 months.

Benefits of no annual fee rewards cards

Here are some of the benefits you can enjoy with a no annual fee rewards credit card:

  • Bonus points offers. Many rewards credit cards offer bonus points to new cardholders for signing up. However, you might have to spend a certain amount on eligible purchases to unlock and receive your bonus points. For example: “Enjoy 30,000 bonus points when you spend $3,000 within the first 3 months of account opening.”
  • Earn points for every dollar you spend. As with all rewards cards, you will earn a specific number of points per dollar spent on eligible transactions. You can redeem these points for merchandise, gift and shopping vouchers, lifestyle products and services.
  • Access to 0% purchase rate offers. This feature is popular among rewards credit cards as part of an introductory promotion. While the promotional period lasts, you can save money on interest fees and carry your card balance for longer periods without accruing any interest. But when the promotional period ends, any remaining balance will accrue interest at the standard rate for that card.
  • Chance to add additional cardholders. Additional cardholders on your credit card account can help you earn reward points faster. Some cards may charge a fee for each additional cardholder, although many of them offer this feature for free.
  • Modest complimentary extras. Depending on the rewards card, you may also enjoy perks such as complimentary travel insurance, purchase protection, extended warranty on purchases, airport lounge access and concierge services. Higher status cards like black credit cards will offer more complimentary extras than platinum cards. Note that no annual fee rewards cards may not offer as many complimentary extras as rewards cards that charge an annual fee (as the fee can help offset the costs for the provider).

What else should I consider?

There are a number of other features and details you will need to consider when comparing rewards credit cards with no annual fees:

  • Purchase rate. If you carry a balance on your credit card, a high purchase rate can result in exorbitant interest fees over time. With 0% purchase rate promotional offers, the standard purchase rate will kick in once your promotional period is over.
  • Eligible transactions. Most purchases are considered eligible transactions for earning rewards on your card, with the common exceptions of cash advances, balance transfers, gambling transactions, government payments, bank fees and bill payments. Consult your card provider or product disclosure statement for your card’s specific definition and exclusions.
  • Other fees. Other fees, such as ATM fees, late payment charges and over-limit fees, may be applied to your account. International transaction fees will also apply to overseas transactions and internet purchases made with foreign merchants.
  • Point expiry. Most reward programs have an expiry date for the points you accumulate. It’s easy to lose track of this if you are not a big spender and don’t regularly earn enough rewards points to make frequent redemptions.
  • Points cap. Some rewards credit cards limit the amount of points you can earn each statement cycle or year. Make sure you consider this cap before choosing a card, so that you can find one that offers the most convenient limits based on your spending habits.

If you’re keen to earn reward points on your everyday spending but don’t want to pay high fees, it’s worth considering a credit card that offers rewards without an annual fee. As always, we recommend that you research all available options and compare cards in relation to your personal needs and spending habits so you can choose the one that’s right for you.

Picture: Shutterstock

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Credit Cards Comparison

Updated April 5th, 2020
Name Product Purchase rate (p.a.) Balance transfer rate Annual fee
Coles No Annual Fee Mastercard
19.99% p.a.
0% p.a. for 18 months with 1.5% balance transfer fee
$0 p.a.
Earn flybuys points for your spending and save with an ongoing $0 annual fee and 0% p.a. on balance transfers for 18 months.
Qantas American Express Ultimate Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$450 p.a.
Get 100,000 bonus Qantas Points, a $450 Qantas Travel Credit and 2 yearly complimentary Qantas Club lounge invitations. Ends 14 Apr 2020.
HSBC Platinum Credit Card - Balance Transfer Offer
19.99% p.a.
0% p.a. for 22 months
$129 p.a.
Enjoy a balance transfer offer, yearly annual fee refund, airport lounge passes and complimentary insurance covers.
Bendigo Bank Low Rate Mastercard
11.99% p.a.
0% p.a. for 18 months with 2% balance transfer fee
$45 p.a.
A no-frills credit card with a competitive annual fee and 0% p.a. interest rate on balance transfers for the first 18 months.

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* The credit card offers compared on this page are chosen from a range of credit cards 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.

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