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Credit Card Applications » Questions » User Questions » Other » How does the no annual fee feature make a big difference?

How does the no annual fee feature make a big difference?

Answered on | Updated on April 30th, 2011
The content is accurate at the time of publication and is subject to change.

When you go in for specific kinds of credit cards, one of the kinds that you are sure to like would have to be the ones with no annual fee. At first, this might not seem like such a big deal to people out there. However, look closely and you will better understand what it is about these kinds of credit cards that you are sure you are going to like. Here are some unique benefits of these cards over the others that are out there. Once you are aware of these, you can decide whether such cards are suitable for you or not.

With no annual fee, you can essentially hold onto the card and not make any use of it. Some might wonder what the advantage of this might be. This is actually quite simple, as you will be able to show that you have decent number of credit lines, without having to actually use the credit card and pay any fees associated with it. In this manner, you can maintain a good credit score and ensure that you are able to use the kind of cards that you want, when you actually do want it.

Also, with no annual fee, you can use the card when you want, at any point of the year. There is no compulsion to give away the card after one year, which means that you can make minimum payments and continue holding onto the card. For people that are going through a rough patch, this might seem like a viable solution. However, do be careful as you wouldn’t want to end up amassing lots of charges without paying close attention to it. For a small period of time, while you are recovering, this might seem like a very sensible thing to do.

Finally, you should also know that with no annual fee, the cards usually come with a very low or even zero APR rate for an introductory period. This effectively makes this into a debit card and one that you could take benefit of to use money when you want, without having to think twice about it. Hence, people that have so far stayed away from credit cards might want to check this out as these are the features that effectively make for good credit cards. By weighing your choices, it is possible that you can get the credit cards that are best suited for your requirements.

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.
  • Lavonn

    THX that’s a great awsner!

  • Lena

    Now we know who the sensbile one is here. Great post!

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