No Annual Fee Credit Cards – What to be on the Lookout for

As you search around the Australian personal finance sites looking for the right credit card for your spending habits and your lifestyle, you will find many No Annual Fee Credit Cards advertised by the banks and these can make your eyes light up at first, but you need to look at the whole picture. When you compare credit cards there will be several important factors and it's a good idea to work out what are the most critical to you. For some people who like to pay off the full balance of the debt on time each month, before incurring any interest, then the most important factor might be a 55-day interest free period. For someone looking to use the card for regular cash from the ATM then a low cash advance rate is key. For such people it might not represent too much of a problem having to pay a $49 annual fee, for example. It may be seen as a charge worth paying because the other positive features are worth more to them on an annual basis. Conversely someone who plans to use the card sparingly – maybe only a couple of times per year for booking online flights or hotels – may resent having to pay a fee for something they're hardly using. Spread out over the number of purchases they make, an annual fee of $49 becomes much higher per purchase than for someone who is using the card every week for purchases. So for this type of card user a no annual fee credit card becomes much more attractive. No annual fee credit cards will usually lack a rewards or frequent flyer scheme because they are presenting perks and cost savings in another way. Again, consider how important rewards programs are to you in your overall financial set up. You need to strike a good balance of features important to you. When comparing cards you will find that annual fees vary from anywhere between zero and $250. Gold and platinum cards will often be higher than standard credit cards. The type of card you should be looking for will depend very much on how you plan to use it, as you have seen in the examples above. So that is where anyone searching for a credit card should start: with personal analysis of their financial habits and intended credit card usage. Some people find this easier than others and some people find it difficult to be honest with themselves, but it's the only way to choose the right credit card. For more information regarding No annual fee credit cards, low interest rate credit cards and credit card deals, please visit: www.lowerbills.com.au