June 19, 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 Top Credit Cards for Amazon Cash Back

There's no annual fee. If you shop at Amazon a lot, you'd do well to see if a credit card that pays you cash back for those purchases makes sense for you. Be sure to read the fine print and terms for any card of interest, as there may be details making ...

Published:  Mon, 18 Jun 2018 07:33:00 GMT

If You Shop at Target, This Is the Best Credit Card for You. Here's Why.

Does that store credit card offer no annual fees Does that store credit card allow you to earn rewards And are those rewards earned at a more accelerated rate than if you were using a regular credit card at that store If the answer to all four questions ...

Published:  Fri, 15 Jun 2018 15:38:00 GMT

The best cash back credit card if you don't have a great credit score

The drawbacks to the QuicksilverOne are its $39 annual fee and its lack of sign-up bonus ... Don't miss: We looked at the 25 most popular cash back credit cards-here's our pick for No. 1

Published:  Fri, 15 Jun 2018 10:24:00 GMT

American Express® Launches New, No Annual Fee Cash Magnet™ Card, Offering Unlimited 1.5% Cash Back

NEW YORK--(BUSINESS WIRE)--American Express (NYSE:AXP) today announced the newest addition to its cash back portfolio - the no annual fee American Express Cash ... responsibility information: charge and credit cards, business credit cards, travel ...

Published:  Thu, 14 Jun 2018 05:22:00 GMT

The Best Cash-Back Credit Cards in March

Better still, there's no annual fee. TheCiti Double Cash Card also offers access to your FICO credit score, which can be helpful if you're working on beefing up your score or if you're keeping an eye on it before, say, taking out a mortgage. (Read our ...

Published:  Mon, 18 Jun 2018 07:20:00 GMT

Chase just announced a new business card with no annual fee, and it's a no-brainer for small business owners and freelancers

In the credit cards rewards war, Chase has made some major moves over ... That's because, in addition to earning rewards quickly, it has no annual fee. The Ink Business Unlimited card is a solid option with a strong and simple rewards scheme, offering ...

Published:  Tue, 29 May 2018 00:13:00 GMT

3 of the Best Cash-Back Credit Card Perks

Credit card companies will effectively pay new cardholders just ... For a no-frills cash-back card with no annual fee and easy sign-up bonus criteria, look no further than JPMorgan Chase's Chase Freedom Unlimited. Cardholders enjoy a $150 cash sign-up ...

Published:  Mon, 18 Jun 2018 12:47:00 GMT

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