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As inferred from its name, a no annual fee credit card is one that does not need users to shell out fees for maintenance of their credit card account on an annual basis. Most credit card companies require users to pay an annual maintenance fee for their account and that's exactly where this specific card can be very useful. Charges are waived with this kind of card.

A no annual fee credit card isn't however, designed for everyone. Users who restrict their credit card usage only to emergency situations are the ones who can benefit from this type of credit card the most. This is primarily due to the fact that such types of cards have a high interest rate attached to them for purchases. Hence users will in reality make no savings if they use a no annual fee credit card very often. It isn't advised for card holders don't pay off their balances each month. Even an occasional piling up of interest will have consumers pay more than they anticipate on purchases. In such situations, credit cards offering reduced rates are favorable.

Who should really choose a no annual fee credit card? Mostly people who intend keeping their costs low can consider picking up one of these cards. Not everyone is comfortable paying a fee on an annual basis for something they don't use that frequently. If used appropriately, credit cards of this type can help save a considerable amount of money. Credit card owners who have a history of not carrying over their balance every month aren't generally affected by interest rates. This kind of credit card can be seen as a bonus for users who reserve their credit card usage to a minimum.

However, there is a pitfall to obtaining this credit card. This credit card doesn't offer users any additional benefits. So yes, don't expect any reward scheme or any other added advantage as seen with a traditional credit card. Nevertheless, this shouldn't have an effect on credit card usage, especially if used occasionally. In fact it is this very rare usage that puts out users from the list of reward point holders.

What's more, a no annual fee credit card can be availed in the platinum lineup of credit cards. A platinum card in this instance isn't of much value, though users can consider owning platinum no fee card if their income permits them.