Now that they gradually eliminated the annual fees, they've advanced the 'no annual fee credit card' into a marketing incentive. But that doesn't mean there are no fees at all. That is why you need to read the entire offer before signing for a new credit card.

If you don't pay the entire balance each month, you must pay a service charge on the unpaid balance. Then if you go over your credit card limit, you must pay an additional fee, perhaps in the $35 range. In addition, if you're late making any payment, not only are you charged a service charge and maybe an over-limit charge, you're assessed a late fee as well. These added fees more than make up for the annual fee that has been discontinued for most cards.

When applying for a new credit card, it's imperative that you plan on and handle your spending and bill paying responsibly. In addition to the added fees, missteps with a credit card can cost you dearly in other ways as well. It can be reflected on your credit report which in turn effects many aspects of your life from a job application, home loan, purchase of a new car, to the interest rate you're charged on new credit purchases. An unfavorable mark on your credit report can even have an effect when applying for insurance.

No annual fee credit cards are offered by most banks and financial institutions. Once you've found a credit card offer that doesn't charge a yearly fee, you can then look at the additional features of each offer.

No interest for an introductory time can enable you to consolidate debts interest free. Rewards programs for many credit cards include cash back, air miles, and numerous goodies too many to mention. Whatever your current financial situation or outlook, there's a credit card offer that will fit your needs.