What Types of Spenders Should Use No Annual Fee Credit Cards

No annual fee cards can seem pretty tempting. If you figure that you’ll just control your spending and pay off what you’ve put on the card within the interest-free period, then waiving a $49 or $99 annual fee can seem like a great bonus to get out of your credit card. However, no annual fee credit cards come with their own set of lurks as wellas perks, that make them suitable for a few very particular types of spenders. Here we check out the ‘Perfect Matches’ for a no annual fee credit card!

Debt-haters

If you don’t generally like debt, you probably don’t like the idea of being charged between $40 and $400 every single year just to have your name on a plastic card. No annual fee cards are for you!

Emergency spenders

As above, if you only want your credit card for emergency spending (and know that you’ll be able to pay off any amounts charged within a month), no annual fee cards are appropriate.

Balance clearers

You could also do well with a no annual fee card, even if you put most of your everyday spending on it … as long as you clear your balance in full, every month. Don’t clear it every 44 or 55 days (or however long the advertised interest free period is) if you’re an everyday spender. Most banks find a way to charge you interest if you push the limits!

Short-term purchasers

If you decide that you want/need a new television, trampoline or swimming pool, a no annual fee credit card could be used to fund the purchase … as long as you pay off the entire amount within the interest free period!

Homework Stars

If you’re considering a no annual fee card, make sure you’re willing to do a little homework! Some cards which are advertised (in big letters) as ‘no annual fee’ credit cards actually only waive the annual fee in the first year. If you choose this ‘one year waiver’ type of card, there has to be other bonuses to go along with it to make the choice worthwhile.