The bulk of lending institutions now offer no annual fee credit cards to entice prospective clients. Picking a card with no annual fee can save you loads of cash. Don't accept the first offer you receive though. Picking the right card can be tricky and being aware of what type of agreement you are getting into is vital.
Suggestions for Picking the Right No Annual Fee Credit Card Everything you need to know about a specific credit card and its policies can be found either on their website or in the fine print included with the card. As a conscientous card-holder, you should know the terms you are agreeing to.
Read the contract every time. Though the information regarding your card's account terms may read like nonsense, it is vital to read through it. The contract often includes the crucial elements about your credit agreement, including any additional fees you may otherwise not be aware of.
Institutions also update these agreements from time to time and send the new copy with your bill. Take some time to read about the changes in the agreement to avoid paying extra fees.
Know that over time the interest rate of your no fee credit card may go up by 10% or more. Introductory rates look good and work well to draw new in clients. Just know that this usually means there could possibly be a significant increase in the interest rate in the future.
Make sure you know the policy on late fees. Some institutions charge as much as $39 for a late fee, which makes up for them not charging an annual fee. Many institutions also have a policy that the low interest rate is only locked in as long as payments are made before the deadline. Late payments could result in an increase in your interest rate. Read the company's policy on over-the-limit fees; they can snowball if left unrestricted. A late fee could possibly be all it takes to put you over your limit and without making a purchase you could owe an additional $80 to bring your credit card below your credit limit again.
Check to see if the institution offers any type of rewards like airline miles, merchandise perks, insurance, balance transfers, gas rewards or a cash back reward system for using the card.
Great No Annual Fee Credit Cards All cards have different terms. Carefully look over all of your options to choose which one would work best for your financial situation and spending style. The right no fee credit card can help save you money.
Chase Bank has a Platinum Business Card that has an introductory rate of 0% with no annual fee and the APR is only 12.24%.
The Discover Business Card has a rate of 13.99%, no annual fee and cash back rewards.
Citi Bank has the CitiBusiness Card that has a low APR of 10.74%, no annual fee, merchandise discounts and a 0% introductory offer.
The American Express Simply Cash Business Card has no annual fee, unlimited cash back bonuses for purchases made with the card, a 0% introductory rate and a very low 8.25% APR.
Credit card companies are becoming more competitive each day; this is why the number of no annual fee cards being offered is rapidly growing. No annual fee credit cards are coupled with a lower or even zero percent APRs on the introductory period which is now the set standard in the industry. It is considered by most credit clients as a great advantage and benefit for them.
Recently, no annual fee credit cards became the most popular instruments used by most companies in marketing their cards. Before, it was not the trend because every card user was charged to pay their annual fees. However, the credit card issuers realized how their clients have resented because they are obliged to pay the annual fees in order for them to utilize their cards.
The credit card issuers slowly eliminated annual fees to advance on their marketing incentives. But clients should never think that there would be no payments at all. Make sure that you carefully study all the credit card offers and features as well as understand all the written statements in your application forms before signing the contract.
It is true that the card issuers might offer you a credit card without an annual fee within a period of one year but when it expires, it will overly charge you with a higher percentage on interest rates. Don't be fooled by some fraudulent offers. Keep in mind that you could face your greatest challenge especially when you are being bombarded by lots of good card offers.
There are always terms and conditions upon every agreement. Take for instance, you are not able to pay your full monthly balance, still, you are required to pay the service charge for any unpaid balances. Likewise if you exceed the limits of your credit card, still, additional fees as high as 35 dollars are needed to be paid. Also avoid paying your fees late because besides the service charge and the excess limit charge, you are also obliged to pay late fees. So, it will turn out to be the client's loss even if they are not charged any annual fees. It would be a great lesson for people who want to apply for a new card.
Card holders should have a definite plan regarding proper credit card handling, spending, and paying their bills responsibly. Any wrong move in using your credit card will cost you a lot giving you financial burden instead of helping you out. All the transactions and the mistakes that you have done will be recorded in the reports about your credit cards. Soon, these unfavorable marks will significantly affect other aspects such as home loans, job applications, new car purchase, insurance application, and interest charges when applying for another card.
You can apply for no annual fee credit cards from a number of financial institutions and banks. Once you have found the credit card that will not charge you any annual fee, immediately make an assessment regarding the other features that it offers. It can include 0 % interest rate during the introductory period, and reward programs such as air miles, cash back, and others.
In every financial situation and needs, you can always find no annual fee credit card offers that will meet your needs. Just be always cautious and keep important reminders in mind.
Both Nick Bair & Aaron Ballantyne are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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