Fees on No Annual Fee Credit Cards

No annual fee credit cards are great value … but they can’t really be called ‘fee free’ cards. If you use your no annual fee credit card incorrectly, it could end up costing you  big numbers in charges. Today we check out the charges on some typical no annual fee cards that you’ll need to be aware of, in order to make them truly good value for you.

Late Payment fees

It is a good idea to set up an automatic transfer of credit card funds every month, so that you don’t get stung with late payment fees. On the Zero Bankwest credit card and on the Wizard Clear Advantage credit card, late payment fees are $35 a pop; the Westpac no annual fee card charges a more reasonable $9 for late payments.

Overlimit fees

If you know that you’re skating close to the limit of your no annual fee card, it’s well worth checking your balance by phone before you put anything through … going over the limit will cost you:

• $30 with the HSBC credit card
• $35 with the Coles Group Source card
• $35 with the Wizard Clear Advantage
• $9 with the Westpac No annual fee card

Cash Advance fees

Many no annual fee card providers charge you money on cash advances – in addition to the higher interest rate, you’ll get charged 2% of the value of the transaction in a one-off fee. In many places there is also a minimum and maximum for the fees, for example:

• Bankwest Zero credit card will charge you at least $4 to take cash out
• Most other providers charge around $2-$3 for cash advances, at a minimum
• However, Wizard Clear Advantage has no cash advance fee

Keep your eye on how you use your credit card … if you don’t play by the rules, deals can quickly turn pretty sour!