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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?

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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.

All credit cards terms, fees and rates mentioned in this article/post are actual on the posting date. See the current products’ Terms & Conditions on the issuing banks' websites.
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