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Best No-Fee Credit Cards



Are no-fee credit cards useful?

No-fee credit cards offer attractive incentives similar to fee-paying cards, such as rewards points, low interest rates, and cash-back offers for specific purchases. These benefits make no-fee cards a valuable choice for a wide range of consumers seeking financial advantages.

What do the users say about no-fee credit cards?

A 2019 survey revealed that almost two-thirds of respondents, who obtained a credit card, considered that having no annual fee was of great importance to them. Furthermore, almost three-quarters of those surveyed suggested that they were very pleased with their no-fee credit cards. Interestingly,the same survey discovered that, of those who had a credit card with an annual fee, only about a third were totally happy with their credit card. Customers who are not frequent users of a credit card will find the no fee option appealing. However, for those with high monthly usage, a fee paying card may provide greater rewards and 'perks' than a no-fee card. As always, it pays to 'do the math' before deciding on which credit card to obtain. It should be remembered that in order to obtain a credit card, of any kind, it is necessary to have a good to excellent credit score. Before making multiple applications for new credit cards it should be considered that this may adversely affect upon the credit rating.

What do you get with a no-fee credit card?

Customers who require 'cash-back' will find that some no-fee cards will pay one percent cash-back during the billing cycle of the purchase, with a further one percent when the debit has been cleared. Customers who may wish to pay off their outstanding credit card over a number of billing periods will seek a low-interest card. Some no-fee cards offer rates from below 8.5 percent APR. There are even no-fee, travel oriented credit cards which offer multiple points rewards when paying for flights, hotel stays and restaurant dining. These cards may also offer a 'welcome' bonus of several thousand rewards points (subject to a certain level of usage of the card within the first few months of acceptance), no foreign transaction fees and zero percent interest during the first 12 months of the billing cycle. Some cards may even offer a 'cash' bonus to new card holders. This bonus will often be subject to spending a certain amount on the card during the first three months after acceptance. For those who have a troubled credit history, there are a number of no-fee credit cards that will require a cash deposit being placed with the card provider as security. The company will observe the usage of the card over a few months and, when they feel that the customer has stabilized their spending, will return the deposit. A Social Security number and a U.S. bank account are necessary when trying to apply for this type of card so they may not be suitable for everyone. A further issue may be the level of credit allowed by the credit card provider. Regular monthly spending or large ticket items may be beyond the level of credit available with this type of credit card.

The huge number of credit card providers who are seeking new customers means that the industry is always seeking to attract people, with good to excellent credit scores, to sign for them.




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