Underlying Truths About No Annual Fee Credit Card

Posted by Nick Niesen on October 29th, 2010

Credit card companies are becoming more competitive each day; this is why the number of no annual fee credit cards being offered is rapidly growing. No annual fee credit cards are coupled with a lower or even zero percent APRs on the introductory period which is now the set standard in the credit card industry. It is considered by most credit card clients as a great advantage and benefit for them.

Recently, no annual fee credit cards became the most popular instruments used by most credit card companies in marketing their credit cards in the market. Before, it was not the trend because every credit card user was charged to pay their annual fees. However, the credit card issuers realized how their clients have resented because they are obliged to pay the annual fees in order for them to utilize their credit cards.

The credit card issuers slowly eliminated annual fees to advance on their marketing incentives. But clients should never think that there would be no payments at all. Make sure that you carefully study all the credit card offers and features as well as understand all the written statements in your application forms before signing the contract.

It is true that the credit card issuers might offer you a credit card without an annual fee within a period of one year but when it expires, it will overly charge you with a higher percentage on interest rates. Don't be fooled by some fraudulent credit card offers. Keep in mind that you could face your greatest challenge especially when you are being bombarded by lots of good credit card offers.

There are always terms and conditions upon every agreement. Take for instance, you are not able to pay your full monthly balance, still, you are required to pay the service charge for any unpaid balances. Likewise if you exceed the limits of your credit card, still, additional fees as high as 35 dollars are needed to be paid. Also avoid paying your fees late because besides the service charge and the excess limit charge, you are also obliged to pay late fees. So, it will turn out to be the client's loss even if they are not charged any annual fees. It would be a great lesson for people who want to apply for a new credit card.

Credit card holders should have a definite plan regarding proper credit card handling, spending, and paying their bills responsibly. Any wrong move in using your credit card will cost you a lot giving you financial burden instead of helping you out. All the transactions and the mistakes that you have done will be recorded in the reports about your credit cards. Soon, these unfavorable marks will significantly affect other aspects such as home loans, job applications, new car purchase, insurance application, and interest charges when applying for another credit card.

You can apply for no annual fee credit cards from a number of financial institutions and banks. Once you have found the credit card that will not charge you any annual fee, immediately make an assessment regarding the other features that it offers. It can include 0 % interest rate during the introductory period, and reward programs such as air miles, cash back, and others.

In every financial situation and needs, you can always find no annual fee credit card offers that will meet your needs. Just be always cautious and keep important reminders in mind.