Annual fees can be one of the biggest costs in a credit card. With an abundance of deals on the market, here’s what you need to know when comparing credit cards with no annual fee.

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Purchase Rate

11.55%

Interest Free Days

Annual Fee

$0

$20

More details

Purchase Rate

18.99%

Interest Free Days

44

Annual Fee

$0

$30

More details

Purchase Rate

11.99%

Interest Free Days

45

Annual Fee

$0

$20

More details

Purchase Rate

11.95%

Interest Free Days

55

Annual Fee

$0

$20

More details

Purchase Rate

20.74%

Interest Free Days

44

Annual Fee

$0

$30

More details

Purchase Rate

21.99%

Interest Free Days

55

Annual Fee

$0

$30

More details

Purchase Rate

6.99%

for 6 months then 16.95%

Interest Free Days

55

Annual Fee

$0

$15

More details

Purchase Rate

11.99%

Interest Free Days

55

Annual Fee

$0

$10

More details

Purchase Rate

8.99%

Interest Free Days

Annual Fee

$0

$15

More details

Purchase Rate

4.99%

for 5 months then 15.85%

Interest Free Days

46

Annual Fee

$0

$0

More details

Purchase Rate

12.39%

Interest Free Days

55

Annual Fee

$0

$15

More details

Purchase Rate

14.99%

Interest Free Days

55

Annual Fee

$0

$30

More details

Purchase Rate

20.74%

Interest Free Days

55

Annual Fee

$0

$30

More details

Purchase Rate

11.99%

Interest Free Days

55

Annual Fee

$0

$8

More details

Purchase Rate

4.99%

for 5 months then 12.34%

Interest Free Days

Annual Fee

$0

$0

More details

Purchase Rate

20.74%

Interest Free Days

55

Annual Fee

$0

$15

More details

Purchase Rate

20.74%

Interest Free Days

55

Annual Fee

$0

$15

More details

Purchase Rate

6.99%

for 6 months then 11.95%

Interest Free Days

44

Annual Fee

$0

$15

More details

Purchase Rate

17.99%

Interest Free Days

55

Annual Fee

$0

$25

More details

Purchase Rate

17.99%

Interest Free Days

55

Annual Fee

$0

$25

More details

Purchase Rate

21.49%

Interest Free Days

55

Annual Fee

$0

$0

More details

Purchase Rate

20.49%

Interest Free Days

55

Annual Fee

$0

$15

More details

Purchase Rate

7.90%

for 6 months then 11.50%

Interest Free Days

55

Annual Fee

$0

$10

More details

Purchase Rate

7.90%

for 6 months then 11.50%

Interest Free Days

55

Annual Fee

$0

$10

More details

Purchase Rate

0.00%

for 6 months then 12.79%

Interest Free Days

55

Annual Fee

$0

$20

More details

Purchase Rate

0.00%

Interest Free Days

Annual Fee

$0

More details

Purchase Rate

9.99%

Interest Free Days

45

Annual Fee

$0

$0

More details

Purchase Rate

4.99%

for 5 months then 12.95%

Interest Free Days

55

Annual Fee

$0

$0

More details

Purchase Rate

19.99%

Interest Free Days

55

Annual Fee

$0

$30

More details

Learn more about credit cards

What are no annual fee credit cards?

As the name suggests, no annual fee credit cards don’t charge a yearly fee. In some instances, annual card fees may be waived for an introductory period of time. Otherwise they’ll be waived for the life of the card. 

Annual fees are typically charged for account maintenance or to support features like frequent flyer programs, rewards programs and complimentary perks. However, if you know you’re a big spender or a reward points addict, no annual fee credit cards may not suit your spending style. 

Before you apply, think about how often you use your credit card. If you’re looking for a backup credit card for those ‘just in case’ moments, or you really don’t use it that often, a credit card with no annual fee may suit your needs.

What are the pros and cons of no annual fee credit cards?

Benefits of no annual fee credit cards:

  • Saving money: The obvious advantage of credit cards with no annual fee is that it saves you money. Credit cards with no annual fee can potentially save you hundreds or thousands of dollars compared to cards that charge anywhere from $30 - $1,200. 

  • Cost-effective: Credit cards with no annual fees can help keep your overall card costs low as well as being cost-effective for those that don’t use their cards that often. If you know you’re not a big spender or a rewards program addict, these low frills credit cards can be a better suited option for your finances. 

  • Introductory deals: Some credit card providers waive annual fees for an introductory period of time. These can help ease the initial costs of signing up to a new credit card. 

Disadvantages of no annual fee credit cards:

  • Introductory deals: On the other hand, while these can be good value, you’ll want to make sure that you’re still benefitting when the promotional period wears off. Be sure to check the terms and conditions to ensure that the annual fee won’t cancel out any savings you may make.

  • Less features: No annual fee credit cards may come with less features. These fees typically go towards supporting your rewards programs and complimentary perks, such as travel insurance. While some frequent flyer cards may waive annual fees, they generally go hand-in-hand. 

  • Other hidden fees and costs: Just because a credit card provider isn’t charging you one cost, doesn’t mean they can’t sting you in other ways. No annual fee credit cards may come with higher than average interest rates, minimal interest free days or just charge you other high ongoing fees. Do your research around all the costs you may be charged with your credit card. 

What other credit card fees could I be charged?

Just because you’re not being charged an annual fee, doesn’t mean you won’t be charged other fees and costs. These may include: 

  • Foreign exchange fee: Charged when making a purchase in another currency (including online shopping), in addition to the normal exchange rate.
  • Overseas charges: Fees covering the extra costs of processing overseas transactions
  • Late payment fee: Charged if you fail to make a minimum repayment on time.
  • Payment dishonour fee: Charged if you cannot afford a payment. 
  • Admin fee: Ongoing fees that are charged more frequently, such as monthly, to keep your account running. 
  • Paper statement fee: Charged for sending you a printed balance statement in the mail.
  • Payment handling fee: Fees charged for making transactions. Can vary in person and online. 

How do I choose the right no annual fee credit card?

With plenty of credit cards with no annual fee on the market, there is no such thing as a one-size-fits-all card. Here’s how you can help to choose the right card for you:

  • Ask yourself what you’ll use the card for. Are you a big spender? Planning an overseas trip? Wanting to consolidate debt? Before you apply for a credit card with no annual fee, factor your spending habits into the equation. 
  • Compare interest rates. The purchase rate charged on a credit card is one of the biggest charges to consider. If you’re getting a no annual fee credit card to keep costs down, you’ll want to 
  • Compare other fees. As mentioned above, just because you’re not being charged an annual fee doesn’t mean you won’t be charged in other ways. Calculate the potential costs of keeping your credit card for a year or two. Then compare this to your spending profile and budget to see which credit card may suit.  
  • Use comparison tables. In a world of complicated financial jargon, comparison tables can help you to compare apples to apples. Use our comparison tools to filter down and compare different credit card purchase rates, interest free days, late payment fees and much more.  

 

 

Frequently asked questions

Can a pensioner get a credit card?

Pensioners can get credit cards with certain banks – if they can convince the bank they’re credit-worthy. Here are some points to consider if you are a pensioner looking for a credit card:

Annual income: Look for a credit card for which you easily fall within the minimum annual income requirements. This can be from the pension, superannuation or any other sources.

Annual fees: If high fees are a concern for you, opt for a card with a low or $0 annual fee. You want to make it as easy as possible to fit a credit card into your current lifestyle and spending habits.

Interest rate: Make sure you won’t have any nasty surprises on your credit card bill. Choose a card with a low interest rate to minimise risk (to both yourself and the bank – and this will help your application).

How easy is it to get a credit card?

For most Australians, there are no great barriers to applying for and getting approved for a credit card. Here are some points that a lender will consider when assessing your credit card application.

Credit score: A bad credit score is not the be all and end all of your application, but it may stop you being approved for a higher credit limit. If your credit score is less than perfect, apply for the credit limit that you need, rather than the one you want.

Annual income: Most credit cards have minimum annual income requirements. Make sure you’re applying for a card where you meet the minimum.

Age & residency: You need to be at least 18 years old to apply for a credit card in Australia, and most require that you are an Australian citizen or permanent resident. However, there are some credit cards available to temporary residents.

Should I get a credit card?

Credit cards are a personal responsibility, so the reasons behind getting a credit card should also be personal.

You should always consider all the pros and cons of taking out a credit card before you sign on the dotted line.

For example, pros include the fact that credit cards can be a good way of paying for purchases, earning rewards points and building a credit history.

But there are also cons – credit cards can be expensive and put a lot of financial pressure on you.

You need to consider your personal finances and your lifestyle choices. Do you need a credit card? What options are out there for me? Can I handle the repayments? Why am I getting a credit card in the first place?

How do you use credit cards?

A credit card can be an easy way to make purchases online, in person or over the phone. When used properly, a credit card can even help you manage your cash flow. But before applying for a credit card, it’s good to know how they work. A credit card is essentially a personal line of credit which lets you buy things and pay for them later. As a card holder, you’ll be given a credit limit and (potentially) charged interest on the money the bank lends you. At the end of each billing period, the bank will send you a statement which shows your outstanding balance and the minimum amount you need to pay back. If you don’t pay back the full balance amount, the bank will begin charging you interest.

How do you use a credit card?

Credit cards are a quick and convenient way to pay for items in store, online or over the phone. You can use a credit card as a cashless way to pay for goods or services, both locally and overseas. You can also use a credit card to make a cash advance, which gives you the flexibility to withdraw cash from your credit card account. Because a credit card uses the bank’s funds instead of your own, you will be charged interest on the money you spend – unless you pay off the entire debt within the interest-free period. If you pay the minimum monthly repayment, you will be charged interest. There are many different credit card options on the market, all offering different interest rates and reward options.

Current Annual Fees

Which credit card has the highest annual percentage rate?

The credit card market changes all the time, so the credit card with the highest annual percentage rate is also liable to change.

One thing to remember is that credit card interest rates are expressed as a yearly rate, or annual percentage rate (APR). A low APR is generally good but also consider:

  • There can be different APRs for each feature of the card (e.g. purchases may have an APR of 14 per cent, while cash advances on same card could have an APR of 17 per cent
  • Credit cards with a variable rate can change throughout the year, affecting your APR, so check the full details
  • If you pay your balance in full every month, having the lowest APR is not as important as the other fees associated with the card. However, if you carry a balance from month to month, then you want the lowest APR possible

How to get a free credit card

Many people want to know how to get a free credit card. The reality is that all credit cards come with associated costs when used to make purchases – even if it’s simply the cost of making repayments.

However, many lenders offer incentives for customers such as a $0 annual fee or 0 per cent interest on purchases during an introductory period. You may be able to cut down on the usual costs associated with a credit card by comparing and choosing the right card to suit your requirements.

Additionally, paying off your balance in full during an interest-free period means you could only have to pay back the cost of purchases without interest. You could also be eligible for additional rewards such as cashback during that time, saving you more money.

How do you cancel a credit card?

Credit cards aren’t something you want to collect unnecessarily. If you’ve paid the balance off or have upgraded to a new credit card, it’s important to cancel your old cards to avoid any additional fees. Unless you’re doing a balance transfer, you’ll need to pay the outstanding balance before you cancel your credit card. If you’ve opted for a card with reward points, make sure you redeem or transfer the points before you close your account. To avoid any bounced payments and save yourself an admin headache, redirect all your direct debits to a new card or account. Once you’ve done all the preparation, call your bank or credit card provider to get the cancellation underway. Once you receive a confirmation letter, destroy your card and make sure the numbers aren’t legible.

What's the best credit card for rewards?

Credit cards offering rewards can be great if you know you’ll use the card enough to get significant rewards points, and use the rewards you earn.

They can also come with high annual fees that may end up nullifying the rewards, so think how often you use the card to decide whether the benefits outweigh the extra cost for you. A card with a lower annual fee might require a lot of spending to get any useful rewards, while another card with a higher annual fee might need fewer purchases to get a reward.

Also, think about the types of benefits you’d like. There’s no point in getting a card with rewards for retailers you never visit, or travel you don’t have time to use.

How to get a credit card for the first time

A credit card can be a useful financial tool, provided you understand the risks and can meet repayment obligations.

If you’re a credit card first-timer, review your options. Think about what kind of credit card would suit your lifestyle, and compare providers by fees, perks and repayments.

Once you’ve selected a card, it’s time to apply. Credit card applications can generally be completed in store, online or over the phone.

When you apply for a credit card for the first time, you must meet age, residency and income requirements. As proof, you must also provide documentation such as bank account statements.

What should you do if your credit card is compromised?

Credit card fraud is a serious problem. If your credit card is compromised and you’re wondering what to do, here are a few precautionary steps to take.

Contact you credit provider – Get in touch will your credit card provider. If you feel your card has been compromised, you should be able to lock or block it.

Monitor your accounts – Keep an eye on your credit card accounts. Any unauthorised transactions could be a sign your credit card has been compromised.

Check your credit rating – It’s also important to check your credit rating, to ensure you’re not a victim of identity theft or some other financial mischief.

How to make a credit card online

Credit cards can be useful, provided you understand the risks. If you’re wondering about how to make a credit card online application, here are some steps to follow:

  • Test the market – Many credit card options are available online. Compare providers by fees, interest and perks to ensure you’re getting the best deal.
  • Complete the application – Once you’ve selected a card, head to the provider’s website and complete the online credit card application form. Forms vary by providers.
  • Provide details – Most cards require you to meet age, residency, income and credit status condition, and you need to provide details like a bank account statement to prove this.
  • Review details – Ensure the information you’ve entered is correct.

What should you do when you lose your credit card?

Losing your credit card is a serious situation, and could land you in financial trouble. Here is a simple guide detailing what to do when you lose your credit card.

Lock you card – Contact your provider and inform them about your lost credit card. From here lock, block or cancel your card.

Keep track of transactions – Look out for unauthorised credit card transactions. Most banks protect against fraudulent transactions.

Address recurring charges – If your card is linked to recurring charges (gym membership, rent, utilities), contact those businesses.

Check credit rate – To ensure you’re not the victim of identity theft, check your credit rating a month or two after you lose your credit card.

How do I apply for a credit card online?

To make applying for a credit card as straightforward as possible, most lenders offer plenty of online prompts to guide you through the process.

Once you’ve decided on the product you want, follow the link on the lender’s website to start your application. Most lenders will list the documents and information you will need before you begin – for example, identification documents, employer details, your income, regular expenses. It helps to have these handy when you start.

Once you’ve entered all the necessary information, you’ll have an opportunity to review your answers and check everything is correct. You’ll also receive an immediate response from the lender once you submit your application – usually with a reference number so you can track your application’s progress.

What is a credit card?

A credit card is a payment method which lets you pay for goods and services without using your own money. It’s essentially a short-term loan which lets you borrow the bank’s money to pay for things which you can pay back – potentially with interest – at a later date. Credit cards can also be used to withdraw money from an ATM, which is known as a cash advance. Because you’re borrowing money from a bank, credit cards charge you interest on the money you use (unless you repay the entire debt during the interest-free period). When you apply for a credit card, the bank gives you a credit limit which sets the maximum amount you can borrow using your card. Credit cards are one of the most popular methods of payments and can be a convenient way of paying for goods and services in store, online and all around the globe.

How to pay a credit card

There are a few ways to pay a credit card bill. One way is to pay via BPAY. This means you can make your credit card payment on the phone or via the internet.

You can set up an automatic payment from an Australian bank account to pay your credit card bill each month. You can choose how much you want to pay of your credit card bill when you set up the auto payments.

Different Australian banks will also allow you to pay off credit card bills in person at one of their branches.

Some credit card companies also allow you to pay your credit card via an app whenever each statement is due.

Where can I get a credit card?

Looking to get your first credit card? You might be confused as to exactly where to go to apply for one. Here’s where to go when you are ready to put in that application.

The bank: Your bank is a great place to start, provided that you have a good banking history. Since you already have a financial history, you have more chance of your application being approved.

Credit card provider: Another option is to apply for a credit card directly from the issuer, such as Visa, Mastercard or Amex. This will most likely be an online application, so do your research and apply for a suitable card for your circumstances.

Major retailers: Coles, Woolworths, Myer and David Jones all have credit cards available. But watch out for the interest rate and annual fees – these cards are designed to help you spend more in store.

Credit Card Balance

What is a balance transfer credit card?

A balance transfer credit card lets you transfer your debt balance from one credit card to another. Designed to incentivise customers to switch banks, a balance transfer credit card generally has a 0 per cent interest rate for a set period of time. When you roll your debt balance over to a new credit card, you’ll be able to take advantage of the interest-free period to pay your credit card debt off faster without accruing additional interest charges. Applying for a balance transfer credit card is relatively straightforward. When your application is approved, the provider will pay out your old credit card and transfer your debt balance over to the new card. There are plenty of balance transfer offers available on the market with 0 per cent interest rates available from six to 24 months.