Reasons For a No Annual Fee Credit Card

Apart from not having to pay for using no annual fee credit cards there are a few other benefits to using one for your purchases.

Using a credit card can give you greater protection than if you just purchase goods and services with cash or a debit card. Many banks offer fraud protection with a no annual fee credit card, this means that you remain protected and can ‘claw back’ any funds that were added to your no annual fee credit card without your authorisation. This gives you greater peace of mind when shopping at your local shopping centre or online.

You can improve your credit history. By using a credit card and paying it off in total each month you can build up greater trust lending companies and therefore improve your credit score. You can improve your credit history with a large variety of credit cards; however doing this with a no annual fee credit card makes the most sense.

Once you have built up your credit history this allows you to have greater flexibility and choice when new credit cards come onto the market.
You have the ability to use an automatic teller machine or ATM and withdraw cash up to your credit limit. If you require cash fast this can be a great option. The down side of doing something like this is that you will be paying a higher interest rate than if goods or services are added to your card. The interest rate will be applied from the moment you withdrew the cash, this means you will always be paying a substantial price for accessing cash from the credit card.

The greatest reason for a no annual fee credit card is for emergencies For instance if you do not have any other funds and only have your credit card, having the card will not cost you anything each year as long as the card is paid in full each month.