Some people believe that no annual fee credit cards are the perfect choice for their family. Others believe it’s the worst thing you could possibly purchase unless you’re good about switching over cards before you take a big hit elsewhere. This has been an ongoing debate for quite some time, but today we want to focus on exactly what it is, the kinds of benefits you can receive from using one, and whether or not the disadvantages mean you should stay away from them.
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What are No Annual Fee Credit Cards?
These are standardized credit cards that won’t charge you a yearly fee for using their services. Depending on the company you use for your credit card needs, it’s always possible to get hit with an annual fee. However, no annual fee credit cards do exactly as they read, so you don’t have to worry about this additional charge. However, there are other benefits as well. Your job is to do a little research and find the best one for your needs.
The Advantages
Even though no annual fee credit cards will eliminate the yearly fee that is attached with most companies, there are other benefits available. One of the biggest deals outside of this is not being charged a balance transfer fee either. This can be a huge benefit for individuals looking to get lower interest rates on their balances. A lot of families utilize this strategy when their credit card debt is piling up and there is nowhere else to turn. Taking this route can provide you with relief almost instantaneously.
Here is a short list of some other features involved with no annual fee credit cards:
- Best frequent flyer plastics
- Gas credit products
- Hotel cards
- Cash back rewards and much more!
The trick is to find everything you need from the no annual fee credit cards. They work just like any other option, but your daily obligations and lifestyle will play a huge role in which one of these you choose. For instance; if you have a career in sales or something that deals with a lot of daily driving, utilizing the gas credit products will be essential to your every day life. Why not save money on something you are going to do whether or not you have one of these credit cards.
Then again, maybe you own a restaurant or catering service and want to enjoy those cash back rewards to help lower the cost of your supplies. A no annual fee credit cards approach will be ideal since a lot of your finances revolve around sticking to a company budget. There are a million scenarios we could give you here, but the point is; you have to figure out what works best for you and then run with it. After all, you might want to take your family on vacation and take advantage of the hotel cards available.
Introductory annual percentage rates in the beginning are usually 0%, so make sure the one you’re interested in is as well. Then of course you can’t forget about the online application process that will let you know whether or not you’ve been approved today. In fact, normally it only takes a few short minutes to see your results. Just take the time to look around and try not to apply for every single card you think looks good. Do the research and you will find the best no annual fee credit cards available.
The Disadvantages
You won’t find too many disadvantages attached to no annual fee credit cards. The biggest issue is the interest rate after the introductory period is over. Most of the time you will find them revolving around 12% to about 20%. If you don’t take the time to research each card this could end up costing you more money over the long term.
Don’t forget about any late charge fees or various other charges that would be considered “unexpected.” Some of the companies don’t have all the same features either, so you have to make sure the one you choose is going to complement your needs. Alternatively, if you’re looking to transfer a balance and hold off on interest payments, you can get 0 balance transfer credit cards (very popular).
Your Choice
Once you do the research you will find that several companies offer no annual fee credit cards. While this is true, they don’t offer the same deals. The best thing to do is look over each one and then compare them. We even recommend writing down everything you want from your new credit card. This way when you’re searching for the right one you can utilize your notes as a checklist.