The greater part of banks now offer no annual fee credit cards to bait prospective consumers. Choosing a card with no annual fee can save you loads of cash. Don't jump at the first offer you receive though. Choosing the right card can be tricky and realizing what kind of contract you are locking into is important.
Tips for Choosing the Right No Annual Fee Credit Card
Everything you need to know about a particular credit card and its policies can be found either on the instituion's website or in the pamphlet included with your card. As a accountable card-holder, you should know the terms you are agreeing to.
Read the contract every time. Though the information printed about your card's account terms may sound like nonsense, it is important to read through it. The card-holder's agreement often includes the vital aspects about your credit agreement, including additional charges you may otherwise not be aware of.
Lenders also update these policies from time to time and send the new copy with your bill. Take some time to note the changes in the contract to avoid paying additional charges.
Understand that in the future the interest rate of your no fee credit card may go up by 10% or more. Introductory interest rates look good and work well to draw new in cardholders. Just know that this usually means there could be a significant rate hike in the future.
Make sure you comprehend the policy on late fees. Some lenders charge as much as $39 for a late fee, which makes up for the lack of an annual fee. Many cards also have a policy that the low APR is only locked in as long as payments are made on time. Payment deliquency may result in an instant increase in your APR.
Understand the company's policy on over-the-limit fees; they can get out of control if left free. A late fee could possibly be all it takes to put you over your credit limit and without making a purchase you could owe an additional $80 or more to bring your credit card current.
Look to see if the credit card company offers any type of rewards like airline miles, merchandise perks, insurance, balance transfer options, gas rewards or a cash back reward system for using the card.
Great No Annual Fee Cards
Every credit card has different contracts. Take care to look over each option to decide which one would work best for your financial situation and life style. The right no fee card can help save money.
Chase Bank has a Platinum Business Card that has an introductory APR of 0% with no annual fee and the rate is just 12.24%.
The Discover Business Card has a 13.99% APR, no annual fee and cash back bonuses.
Citi Bank has the CitiBusiness Card that has a low rate 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 for purchases made with the card, a 0% introductory rate and a very low 8.25% APR.
