March 23, 2018

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Credit Card Fees

The No Annual Fee Credit Card Advantage

When a No Annual Fee Credit Card Doesn't Save You Money


Top Consumer Reviews Articles provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

When a No Annual Fee Credit Card Doesn’t Save you Money

When the government placed heavy restrictions on credit card policies in 2009, an effort to better protect the consumer financially, credit card companies had to become more creative in making their money. The days of double fees, underage clients, and unfair interest rate increases were over for them. But, new, less obvious methods of making back that lost revenue evolved.

Today there are a number of reasons why a credit card company will not charge an annual fee but most often it's used to draw in a customer. Annual fees are often waved for the first year or longer and credit card companies make every effort to make that back as quickly as possible. Below are several ways credit card companies work to draw you in and then make money off your business:

  • Interest rates. Most no annual fee credit cards have at least a slightly or significantly higher interest rates. This is one common method of earning back the cost of the waived annual fee. This is fine for those that never carry a balance and feel confident enough they will never have to. However, if you do tend to hold a balance from month-to-month you'll want to closely consider the annual interest rate and how much it will cost you to maintain your balance over time. If your balance is so large that the interest you accrue over the course of a year would be larger than the annual fee, you might want to opt for a card that will save you over all.
  • New Fees. Consumers should be on the lookout for additional fees not legally restricted by the Credit Card act of 2009. Perhaps all of them have not yet been identified but activation and application fees are some that we can think of. Reading the fine print of your credit card agreement will probably either give you a headache or put you to sleep but it's important in identifying any fees that you will be charged.
  • No annual fee offers might not last. Some no annual fee credit cards wave the fee only in that first year. When consumers are quick to avoid reading the fine print they are often shocked, the next year, when a hefty, say, $200 annual fee hits their account unexpectedly. This is a clear example of when a waived annual fee is not a good option.
  • Enticing offers. All of us like to receive something that feels free. No annual fees, cash back and reward credit cards are all very enticing. When a consumer chooses a no annual fee card with rewards programs, that encourage them to spend more than they can afford or quickly pay off, then the credit card is not a good savings opportunity.

Any time you're opening a new credit card account, you should look at several offers and do the math on which one is the best for your spending needs. If you plan on maintaining a bigger balance you may save money with a credit card that charges a small annual fee but offers a lower fixed interest rate.

7 Reasons Why The Amex Platinum Is Worth The Annual Fee

This saying is also true for credit cards these days. In general, cards with the lowest annual fees offer the worst points earning ... for free - and unlike with airline lounges there are no fees for guests or upcharges for food and beverage.

Published:  Tue, 20 Mar 2018 13:26:00 GMT

Family Finance: Credit Card Crunch

Don't forget to also research annual fees, late fees and the fine print. When you pull out that credit card ... Here are a few more tips for using those cards wisely: Pay the card off every month. No balance means no expensive interest charges.

Published:  Tue, 20 Mar 2018 07:58:00 GMT

10 Best NO ANNUAL FEE Rewards Credit Cards of March 2018

There are an abundance of no fee rewards credit cards available, so how do you best determine which one to keep in your wallet Most earn a measly 1% on your spending, while others have no rewards at all. To help, we've dug deep into our database of ...

Published:  Tue, 27 Feb 2018 16:00:00 GMT

Credit card costs increase for customers paying with plastic

And for Coles credit card customers with a low rate Mastercard, low rate platinum Mastercard or no annual fee Mastercard their interest-free periods will be wound back from 62 to 55 days from March 5. This means customers have one week less to pay back ...

Published:  Mon, 05 Feb 2018 14:41:46 GMT

UK banning stores from charging debit/credit card & Apple Pay fees starting this month

The new law is applicable both in-store and online and extends to debit cards, credit cards, American Express ... businesses and force them to increase their prices. Reducing the fees associated with Apple Pay should further help its adoption in the ...

Published:  Mon, 01 Jan 2018 16:00:00 GMT

What to Know About Applying for a No-Annual-Fee Credit Card

Fees play a key role in meeting or beating long-term personal financial goals. It's so significant in investing, because high fees can mean several hundred thousand dollars less money over multi-decade periods as charges eat away at returns. No less ...

Published:  Mon, 03 Jul 2017 08:06:00 GMT

Fee Credit Cards Better Than No-Annual Fee Cards For Most Singaporeans: ValuePenguin Analysis

Singaporeans are a financially savvy people. They are always looking for deals and opportunities to save more money. In terms of credit cards, however, "saving" on annual fees may not translate into more economic value. While many consumers are interested ...

Published:  Tue, 30 May 2017 17:10:33 GMT

Best no annual fee credit cards

Our reviews and best card recommendations are based on an objective rating process and are not driven by advertising dollars. However, we do receive compensation when you click on links to products from our partners. Learn more about our advertising ...

Published:  Tue, 25 Jul 2017 18:00:00 GMT

United Continental : Airlines and Chase Introduce the TravelBank Card, A No Annual Fee Credit Card for Leisure Travelers

"Cash-back credit cards continue to rise in popularity and we noticed an opportunity in this space for United customers - a no annual fee card with compelling travel benefits that rewards in TravelBank cash," said Leslie Gillin, President of Co-Brand ...

Published:  Thu, 08 Jun 2017 21:01:00 GMT

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