The bulk of banks now offer no annual fee credit cards to bait prospective consumers. Picking a card with no annual fee can save you a great deal of money. Don’t jump at the first offer you receive though. Picking the right card can be time consuming and knowing the kind of contract you are getting into is essential.
Suggestions for Picking the Right No Annual Fee Credit Card
Everything you need to know about a specific credit card and its policies can be found either on the instituion’s website or in the pamphlet that came with the card. As a conscientous card-holder, you should be aware of the terms you consent to.
Read the fine print every time. Though the information regarding your card’s account terms may seem like nonsense, it is essential to read through it. The legal talk often contains the vital aspects about your credit agreement, including any additional fees you may otherwise not be aware of.
Institutions also update these agreements now and then and mail the updated agreement with your bill. Take the time to read about the changes in the contract to avoid paying additional fees.
Know that over time the interest rate of your no fee credit card may increase by 10% or more. Introductory rates are appealing to new cardholders. Just know that this usually means there will be a large increase in the interest rate in the future.
Make sure you know the policy on late fees. Some credit cards charge as much as $ 39 for a late fee, which makes up for the lack of an annual fee. Many institutions also have a policy that the low interest rate remains the same as long as payments are made on time. Late payments could result in an increase in your APR.
Understand the lender’s policy on over-the-limit fees; they can snowball if left free. A late fee is all it takes to put you over your limit and without making a purchase you could owe an additional $ 80 or more to bring your credit card below your credit limit again.
Look to see if the lender offers any type of rewards like vacation miles, merchandise perks, extended warranties on goods, balance transfer options, gas rewards or a cash back reward system for using the card.
The Best No Annual Fee Credit Cards
All cards have different agreements. Carefully look over each option to find which one would work best for your fiscal situation and life style. The right no fee credit card can help save you money.
Chase Bank offers a Platinum Business Card that has an introductory APR of 0% with no annual fee and the rate is just 12.24%.
The Discover Business Card offers a rate of 13.99%, no annual fee and cash back rewards.
Citi Bank offers the CitiBusiness Card that has a low rate of 10.74%, no annual fee, merchandise discounts and a 0% introductory offer.
The American Express Simply Cash Business Card offers no annual fee, unlimited cash back for purchases made with the card, a 0% introductory rate and a low 8.25% APR.
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