Comparing No Annual Fee Credit Cards

When you see an advertisement for a no annual fee credit card, your first instinct may be to jump on that opportunity real fast. After all, no annual fee means a large savings, right? Sometimes this is the case and sometimes not at all. Learn how to comparison shop for credit cards, even those offering no annual fee.

Even your credit card offer is for a no fee credit card, make sure you learn what this really means for you. What they're telling you is that you will not be paying an annual fee. While this sounds like a great deal, comparison shop for the best deal on your credit card. Although no annual fee credit cards are offered to consumers with good credit rating, they are also offered to individuals with poor credit scores. The difference, however, may be in the interest rate you're being charged. Often no fee credit cards are given to borrowers with poor credit and, consequently, they are charged a high rate of interest. You'll know right away if a credit card is being offered with no fee annually because it's usually their incentive and will be mentioned somewhere in the advertisement.
If you get an offer for a no fee credit card, you may wish to contact your local bank and see what they can offer you. Many times banks deal with some of the major credit card companies offering MasterCard or Visa. They may be able to match the rate as well as having no annual fee. As appealing as a no annual fee credit card sounds, always make sure you're getting the best possible interest rate. A credit card with a $100 annual fee and 9% interest is going to be a better deal than a no fee credit card with 21% interest if you carry a large balance. For instance, with a $1,000 balance, you'll pay $1,190 with the annual fee/9% interest credit card and $1,210 with the no fee/21% interest credit card. Not a large difference, but a difference none the less. Another thing you should check on is what the terms and conditions of the credit card state in regard to the "no fee" policy. Often, credit card companies will charge no fee as long as the payments are made on time. But, this is waived if your payment is late. So, in summary, always compare the no annual fee credit cards to make sure you're getting the best deal all the way around.
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