Are “no annual fee” cards better than the... - Other Questions

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Questions » User Questions » Other » Are “no annual fee” cards better than the ones that carry annual fees?

Are “no annual fee” cards better than the ones that carry annual fees?

Answered on

In many cases, we do find that there are cases where we see that no annual fee is charged against some of the facilities that are availed. In cases of the credit card and debit cards, we do see that the financial institutions or the banks charge a certain amount of annual fees to their card holders. This is a common practice that most of the banks follow. The credit cards that come with the reward features often have an annual fee and a higher interest rate. Cards where the annual fee is needed are best suited for those people who use the card regularly and hence let us now look at some of the advantages of these type cards.

Some of the advantages are as follows:

• Extremely low level interest rates

• Low credit limit offered to all the card holders

• Interest-free days are available and hence you can take the benefit of the card to the fullest.

• Introductory promo deals are offered and mostly they are all very lucrative and the offers are very attractive to lure clients.

Some of the Disadvantages of the entire process of the card system are as follows

• Higher interest rates are charged to the holders for cash advances

• Will cost much more than the previous rate once the introductory period is over. This can put all the card holders in real problem as they will have to pay more than usual.

So if we look at the facts, then we will see that this is not the right option for people as they will have to pay a lot more, and hence this is a real problem for all those who don`t have a fixed source of income. The no annual credit cards are the best solution for this problem as it does not charge interest for the first fifty purchases. In addition to this no annual fee is charged to the card holder and the monthly payments that are done are also on the lower side. This has many advantages and one of them being that it helps to keep the expenditure of the card holders in check. However, before you get the service always make sure that the offers are all thoroughly checked and the entire thing is carefully researched. Since, there are many problems that can occur you have to be very careful.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit

Other Questions in
Other