No annual fee credit cards come with lots of additional perks like low interest rates, rewards and up to 5% cash back on all your purchases. With so many offers out there, how can you choose the one that fits your needs? Simply think about how you plan to use your card and the answer will come.
A no annual fee credit card doesn't carry any membership fees and costs nothing to use, assuming you pay your balance in full by the due date each month. These cards are very popular, not least because they are a great credit-building tool. A no-annual-fee credit card account in good standing will have a positive effect on your credit report every month, as long as you make payments on time and keep the account in good standing.
Being approved for a new credit card shouldn't put you in debt as soon as the account is opened. Cards that carry an annual fee could cause you to owe money before you've even made a purchase.
If your card carries no annual fee, you'll never have to worry about leaving enough funds available to accommodate the fee each year, which could put you in danger of going over your credit limit.
Combine a no-interest offer with a no-annual-fee card, and it'll cost you nothing to use your credit card. Add in cash back rewards, and you'll be getting free money! Search out cards that not only give 1% cash back on all your purchases, but also offer a special cash bonus program that gives you up to 5% cash back on select purchases and up to 20% cash back on your yearly cash back.
Banks sometimes offer sign-on bonuses of cash, goods, frequent-flyer miles, or gift cards. Look around for the best deal!