Compare no annual fee credit cards

As the name suggests, no annual fee credit cards don’t charge a yearly fee. One of the biggest ongoing fees of any credit card is the annual fee, and a no-annual fee credit card is designed to help you keep costs down. 

In some instances, annual card fees may be waived for an introductory period of time. Otherwise they’ll be waived for the life of the card. Keeping fees low is one option that young Australians in particular have to ensure they can maintain their first credit card bills comfortably.

Annual fees are typically charged for account maintenance or to support features like frequent flyer programs, rewards programs and complimentary perks. So if you know you’re a big spender or a reward points addict, no annual fee credit cards may not suit your spending style. 

However, if you always pay your credit card statement on time and never incur interest charges, you may find that an annual fee is the only credit card cost you pay. In this instance, it may be worthwhile to consider a no-annual fee option.

Before you apply, think about how often you use your credit card. If you’re looking for a backup credit card for those ‘just in case’ moments, or you really don’t use it that often, a credit card with no annual fee may suit your needs.

Saving money

The obvious advantage of credit cards with no annual fee is that it saves you money. Credit cards with no annual fee can potentially save you hundreds or thousands of dollars compared to cards that charge anywhere from $30 - $1,200.

Cost-effective

Credit cards with no annual fees can help keep your overall card costs low as well as being cost-effective for those that don’t use their cards that often. If you know you’re not a big spender or a rewards program addict, these low frills credit cards can be a better suited option for household budgets.

Introductory deals

Some credit card providers waive annual fees for an introductory period of time, such as the first year. These can help ease the initial costs of signing up to a new credit card. This can also go hand in hand with introductory deals offering lengthy interest free periods.

Introductory deals

On the other hand, while these can be good value, you’ll want to make sure that you’re still benefitting when the promotional period wears off. Be sure to check the terms and conditions to ensure that the annual fee won’t cancel out any savings you may make.

Less features

No annual fee cards may come with fewer features than a platinum or rewards credit card, which typically carries higher ongoing fees. This includes features like:

• Rewards programs
• Frequent flyer programs
• Complimentary insurance
• VIP and concierge services
• Gift cards and cashback offers

Annual fees typically go towards supporting your rewards programs and complimentary perks, such as travel insurance and other complimentary insurance covers. 

While some frequent flyer cards may waive annual fees, they generally go hand-in-hand with cards offering big rewards and perks. This means you typically won't find a rewards or platinum credit card that doesn't charge an annual fee.

Other hidden fees and costs

Just because a credit provider isn’t charging you one cost, doesn’t mean they can’t sting you in other ways. No annual fee credit cards may come with higher than average interest rates, minimal interest free days or just charge you other high ongoing fees. Do your research around all the costs you may be charged with your credit card.

There are a range of credit cards in the Australian market that do not charge a costly annual fee, including low-rate credit cards, travel credit cards and some rewards credit cards. 

Many card issuers provide a no annual fee option. One of the easiest ways to find a no annual fee credit card is to use a credit card comparison table. Comparison tables, like the one on this page, allow you to compare apples with apples. 

You will see a range of credit card options side by side and can easily compare different interest rates, fees and rewards. You will also be able to filter down and sort your results via annual fees, helping you to make a short list of credit cards that don’t charge this ongoing fee. 

If you have a credit card, you may be wondering if there are any completely fee free options on the market. Unfortunately, it’s a bit like asking if there’s such a thing as a free lunch. Chances are, if something is advertised as ‘fee free’ you may pay in other ways.

Credit card providers still need to make money. So, even if a credit card advertises itself as ‘fee free’ or low in fees, you may be charged through higher interest rates on purchases or cash advances. You may even pay in other fees outside of an annual fee, such as foreign transaction fees.

However, you can do your due diligence to ensure the credit card you choose has as few fees as possible - especially ones that you come across more often than others. For example, if you love shopping overseas and are frequently hit with overseas fees, opting for a foreign transaction fee free credit card may better suit your finances.

Comparison tables can come in handy here, as you may want to select options that advertise the least amount of fees possible. 

Just because you’re not being charged an annual fee, doesn’t mean you won’t be charged other fees and costs. If you're looking to have a fee free credit card, you may want to consider reviewing which of the following your credit card may sting you with: 

• Purchase rate: The interest rate charged on any purchases you make after however many interest free days (if any) your card may have.
• Cash advance rate:The interest rate charged on money withdrawn from outlets like ATMs or supermarket checkouts.
• Foreign exchange fee: Charged when making a purchase in another currency (including online shopping), in addition to the normal exchange rate.
• Foreign transaction fees: Fees covering the extra costs of processing overseas transactions
• Late payment fee: Charged if you fail to make a minimum repayment on time.
• Payment dishonour fee: Charged if you cannot afford a payment.
• Admin fee: Ongoing fees that are charged more frequently, such as monthly, to keep your account running.
• Paper statement fee: Charged for sending you a printed balance statement in the mail.
• Payment handling fee: Fees charged for making transactions. Can vary in person and online.
• Supplementary cards: Credit card providers may charge you if you request supplementary cards for any additional cardholders.

With plenty of credit cards with no annual fee on the market, there is no such thing as a one-size-fits-all card. Here’s how you could choose the right card for you:

Ask yourself what you’ll use the card for 

Are you a big spender? Bonus points chaser? Planning an overseas trip? Wanting to consolidate debt? Before you apply for a credit card with no annual fee, factor your spending habits and specific financial situation into the equation. For example, most rewards credit cards tend to come with an annual fee as this helps to fund the rewards program. It may be difficult to find a no annual fee rewards card.

Compare card types

Would you benefit more from a Visa, Mastercard or American Express? It's worth comparing the different card types to see what better suits your financial situation.

Compare interest rates

The purchase rate charged on a credit card is one of the biggest charges to consider. If you’re getting a no annual fee credit card to keep costs down, you’ll want to also consider if a low interest rate credit card would suit your financial situation.

Compare other fees

As mentioned above, just because you’re not being charged an annual fee doesn’t mean you won’t be charged in other ways. Perhaps there are other fees you're looking to avoid besides an annual fee? 

Calculate the potential costs of keeping your credit card for a year or two against the minimum credit limit and maximum credit limit. Then compare this to your spending profile and budget to see which credit card may suit.  

Compare features and perks

Just because you're looking for fee free credit cards, doesn't mean you can't find one with helpful features and perks. This could mean a card with a high number of interest free days, one with a competitive balance transfer offer, a 0% interest rate introductory offer for the first year of the card, complimentary insurance, a high credit limit, and more. You may also want to look at a card that can be bundled with other credit products, like a home loan.

Eligibility criteria

Before you make a card application, read the terms and conditions, product disclosure statement for a greater breakdown of any eligibility criteria you may need to meet to be approved for a credit card, as well as potential fees, costs and eligible purchases to earn rewards points.