No Annual Fee Credit Cards vs. Credit Cards with Fees

The world of credit card options can be confusing to less informed consumers. All credit cards have different features and benefits and the only way to know what yours has is by thoroughly reviewing all the collateral paperwork the card issuers provide you. Even though you may find one type of card more enticing than another, based on your credit history you may not be entitled to get the card that your prefer. Although, you may want a no annual fee credit card you may only be able to get a credit card that charges a fee.

Because there are so many nuances to differentiate credit cards, it is important to know the major differences regarding no annual fee credit cards versus credit cards with fees. Some credit cards charge consumers a yearly charge for the privilege of having their plastic in your wallet. The fees vary based on the type of credit card you may opt into carrying. With the payment of the annual fee, a consumer may earn perks or get a lower APR rate on their card, but that is not guaranteed. If you tend to carry large balances on your credit card, a combination of a small annual fee and a lower APR rate may prove to be more cost effective.

Plenty of cards are offered that do not require an annual fee payment. Although some offer less perks (like reward points) than no fee credit cards, those with excellent credit ratings can still secure no annual fee credit cards that will reward you for choosing them. Typically a no annual fee credit card comes with a bit longer grace period to help keep your payments on track. If your consumer behavior lends to paying off your monthly credit card statement in full you may prefer a no annual fee credit card.

At the end of the day, there is no true difference between any no annual fee credit cards and credit cards with fees except one costs you more money. By maintaining a strong credit history and comparison-shopping for credit cards, it is more than likely that a consumer can find a no-fee credit card with all the perks and rewards they like.