If you use your credit card rarely and pay off the balance each time you use it, then these are the cards for you.  With no annual fees then you are not paying for something you are not using. 

If you occasionally use the card and take a few months to pay off the card then you may be better off with a Low Interest Rate Card.  Compare the ongoing rate with the annual fee to make sure you’re using the right card.

 

Credit Card	Card Details	Interest Rate	Annual Fee	Interest Free Days	Cash Advanced Rate	Balance Transfer Rate	Â
	Enjoy the freedom to make everyday purchases, pay bills or deal with that unexpected expense, without paying for extras you don't need.	18.99% p.a	 $0 for 1st yr, then $30 p.a.	 44	 20.74%	 7.99% p.a. for first 6 months	  Â
	Enjoy the freedom of the skies with the AMEX Gold Ascent Credit Card. Offering a $0 Annual Card Fee and up to 44 interest-free days plus complimentary enrolment in Membership Rewards Ascent.	19.99% p.a	 0	 44	 19.99% p.a	 N/A	  Â
	Rather than pay for the features you don't need, HSBC's Credit Card gives you the freedom to buy what you want, when you want. HSBC also offer a $50 cashback on this card.	16.99% p.a.	 $0	 55	 20.75%	 0% p.a. for first 6 months	  Â

No annual fee credit cards are great options to eliminate the annoyance and expense of renewal fees for your credit card. However, to gain this feature the credit consumer will normally pay a little higher interest rate on the credit card. Credit consumers who do not carry a balance on their credit cards will find these types of cards attractive. For consumers who commonly carry a balance on their credit card, a no annual fee card may not be the best deal; instead, a lower interest credit card may be the most financially beneficial choice.

Points to Consider For No Annual Fee Credit Cards

• Read the terms and conditions as with any credit card. If the fees for a cash advance are high and the credit consumer commonly draws cash from the ATM with their credit card, it may make the card less attractive. If over limit fees or additional fees are present the consumer should know beforehand to avoid triggering them.

• Do the math on no annual fee credit cards. Will you save more with a low interest rate credit card with an annual fee, than you will by not paying an annual fee? Sometimes the results can surprise the consumer since interest adds up over the course of a year and a few points more on a large balance can equate to more than an annual fee.

• It is rare that a no annual fee credit card offers rewards or cash back but occasionally a low annual fee is charged and rewards are offered. You might want to consider this type of card if you carry a balance and want to earn rewards as well.

• Make sure the rates are not introductory with the credit card and the regular rate is acceptable. The most common consumer error is misunderstanding that an interest rate offer is temporary or introductory and then being surprised when the rate ends. Ensure the regular interest rates offered are also acceptable.

Most credit consumers find the annual fee annoying and sometimes a surprise on the end of the year statement. However, there are times when the annual fee is acceptable when compared to the savings in interest or for the consumer who desires cash back or rewards credit card.

Summary of No Annual Fee Credit Cards

No one credit card suits every credit consumer, it is impossible. The best decisions however are made by the consumer themselves and only after reading and understanding the terms of the particular credit card, knowing their own spending habits and also by careful financial planning. In most cases, a no annual fee credit card is best for the consumer who pays off their balance each month or carries an extremely low or infrequent credit card balance. The savings can be significant in that case. The average credit consumer however, would need to evaluate their current interest rates and annual fee against the no annual fee card’s rates to be sure the card fits them.