How Much Will Your No Annual Fee Card Cost You?

There are so many features that come with credit cards now that it is difficult to compare the benefits and drawbacks of different offerings. You need to weigh purchase interest against annual fees, factor in any rewards or cashback you might get, look at introductory offers such as waived annual fees or balance transfer interest rates for the first six months … and on top of it all, factor in your spending habits in the future!

Today we aim to take some of the uncertainty out of credit card comparison by giving you a total cost over 3 years based on a set balance and minimum payments. Of course, your individual spending habits will create a vastly different ‘cost’ for you as an individual – but having an objective way of comparing credit cards is definitely handy.

Here are some of the lowest-cost no annual fee credit cards in the market, assuming a $3000 balance and only the minimum payment is put on each month. It includes introductory offers, so in some cases it may go up a bit after the first 36 months.

Aussie Credit Card – $1,123 over 3 years

More of a ‘low annual fee’ than a ‘no annual fee’ credit card, the Aussie offering is great value. If you use the balance transfer time to pay down your existing balance, you can make it even better value.

Bankwest Lite Credit Card – $1,144 over 3 years

Again, use your balance transfer time (you have 9 months at 1.99% for this credit card!) to pay down your balance, and you’ll be able to cut that figure even more. This card is a very basic offering, but great value!

Bankwest Zero Credit Card – $1,529 over 3 years

The higher cost of the Bankwest credit card with no annual fee comes from its higher general interest rate. If you aren’t the sort to carry a $3000 credit card balance every month, or if you can pay off your balance completely within the 1.99%/9 month balance transfer period, this will be excellent value.