No Annual Fee Credit Card
Most new credit cards come with a no annual fee offer. This
hasn't always been the case. I wonder if issuers realized how
much people resented the yearly fee they were charging just to
use their credit card?
Now that they gradually eliminated the annual fees, they've
advanced the 'no annual fee credit card' into a marketing
incentive. But that doesn't mean there are no fees at all. That
is why you need to read the entire offer before signing for a
new credit card.
If you don't pay the entire balance each month, you must pay a
service charge on the unpaid balance. Then if you go over your
credit card limit, you must pay an additional fee, perhaps in
the $35 range. In addition, if you're late making any payment,
not only are you charged a service charge and maybe an
over-limit charge, you're assessed a late fee as well. These
added fees more than make up for the annual fee that has been
discontinued for most cards.
When applying for a new credit card, it's imperative that you
plan on and handle your spending and bill paying responsibly. In
addition to the added fees, missteps with a credit card can cost
you dearly in other ways as well. It can be reflected on your
credit report which in turn effects many aspects of your life
from a job application, home loan, purchase of a new car, to the
interest rate you're charged on new credit purchases. An
unfavorable mark on your credit report can even have an effect
when applying for insurance. No annual fee credit cards are
offered by most banks and financial institutions. Once you've
found a credit card offer that doesn't charge a yearly fee, you
can then look at the additional features of each offer.
No interest for an introductory time can enable you to
consolidate debts interest free. Rewards programs for many
credit cards include cash back, air miles, and numerous goodies
too many to mention. Whatever your current financial situation
or outlook, there's a credit card offer that will fit your
needs.