No Annual Fee Credit Cards

How does a credit card with no annual fee work?

A no annual fee credit card allows you to buy what you need without having to pay a yearly fee for the account. This can save you around $25 to $1,450 compared to credit cards with an annual fee.

Just like other cards, interest and other charges may apply. But if you pay off the balance each month – and can get interest-free days on purchases – it’s the closest you can get to free money.

Finder's database contains every credit card we could find on the market, including some offering balance transfers, rewards and other benefits. Right now, there are 34 credit cards on the market that charge a $0 annual fee.

Finder's best no annual fee credit card offers for July 2023

Updated 10 July 2023 by Finder's senior credit card writer, Amy Bradney-George.

The Reserve Bank chose to leave the cash rate rate on hold this month, but that doesn't mean things are getting more affordable. The increasing cost of living is still the reality for a number of Aussies in July.

A number of Australians continue to use credit cards to manage their spending. Finder research has found that while 72% of us can manage thier finances without a credit card, we are still putting around 23 purchases a month on plastic.

If you are looking for a credit card, a no annual fee card can allow you to make purchases without an ongoing yearly fee adding to your costs. If you pay off your bill in full each month it gives you low-cost access to credit. Some cards even offer you rewards like vouchers or points.

Here's our pick of offers available through Finder:

• $0 annual fee rewards card:
  The Coles No Annual Fee Mastercard has an ongoing $0 annual fee and offers up to 70,000 bonus Flybuys points (worth $350 Flybuys Dollars).
• No annual fee and 0% balance transfer exclusive offer:
  The Kogan Money Credit Card has an ongoing $0 annual fee and offers 0% p.a. interest on balance transfers for 18 months with a 1% balance transfer fee.
• No annual fee and frequent flyer points:
  The Qantas American Express Discovery Credit Card offers no annual fee for life and earns between 0.5 and 1.75 Qantas Points per $1 on eligible spending.

Keep in mind: There's no one best credit card for everyone, so check details that matter to you.

Types of no annual fee credit cards

Some no annual fee credit cards offer the basics, while others have more features and benefits. This means you can compare credit cards that combine no annual fee with other features including introductory 0% interest rate offers, frequent flyer points, reward points and complimentary extras. Here are some examples.

Pros and cons of $0 annual fee credit cards

As there are different types of $0 annual fee credit cards on the market, it's important to consider your financial situation and how you plan to use the card. Then you can weigh up the other benefits, costs and features to help you find a card that suits your needs.

How to find the right credit card with no annual fee

If you're interested in getting a credit card with no annual fee, ask yourself these questions to help compare your options:

• How often do you use your credit card? Finder research shows 41% of Australians got their most recent credit card for emergencies and 18% got a card to build credit history. So, if you rarely use a credit card but still want one for unplanned expenses or emergencies, getting one with no annual fee means you won't be burning a hole in your pocket when you're not using it.
• Do you carry a balance? Some no annual fee credit cards charge high interest rates on purchases, so they're better suited to cardholders who pay their balance in full each statement period. If you do regularly carry a balance from month to month, you might want to consider a low interest credit card instead.
• Do you have existing debt? If you have existing debt, think about whether you could save more money by focusing on paying off your current debts before you get a $0 annual fee card. You could also consider a balance transfer credit card to save money on interest charges.
• What credit card benefits do you want? No annual fee credit cards sometimes have fewer perks than cards with annual fees. If you're interested in features like rewards programs and complimentary insurance, a rewards or platinum credit card might be worth considering.
• Will you use the credit card after the $0 annual fee promotion ends? If you're looking at a credit card that offers no annual fee in the first year, consider whether you'll get enough value from the card once this introductory period ends. If it doesn't have a competitive interest rate or enough extra features to outweigh this cost, you might want to cancel the card before the annual fee is charged.
• What other credit card fees and charges will you pay? While a $0 annual fee can help you save on costs, it doesn't mean it's a free credit card. As well as interest rates, make sure you check for other credit card fees that could apply, including foreign transaction fees, late payment fees and cash advance charges.

Frequently asked questions

• If I have a credit card with a promotional $0 annual fee, can I cancel the card before having to pay the annual fee?

  Yes, as long as you don't owe any money on the credit card, you can cancel it over the phone or online before the annual fee is charged. Just check your account details or contact your credit card provider to find out exactly when the annual fee is charged, so you can arrange to cancel the account before that date.

• When will the annual fee be charged if I get a credit card that offers no annual fee in the first year?

  If you have a card with a promotional no annual fee offer, the annual fee will usually be charged 12 months after you were approved for the credit card.

• Is there any way to extend my credit card's annual fee waiver?

  This depends on the credit card provider. For example, some providers may waive your credit card annual fee when you also take out a home loan package with them. Others may waive or refund your annual fee if you meet specific conditions, such as spending a set amount each year or being a student. You can check the terms and conditions or ask the credit card company to see if an ongoing waiver is possible, or compare cards with ongoing $0 annual fees instead.

• Is a no annual fee credit card a cheap credit card?

  If you always pay off your balance in full and can make use of interest-free days on purchases, then a no annual fee card can be very affordable. But if you carry a balance that attracts a high interest rate, the interest charges could make your credit card an expensive option. In this case, you might want to compare credit cards and look at the potential savings you'd get from a card with a low interest rate (even if it has an annual fee).

• Is a no annual fee credit card free?

  There is no such thing as a "free credit card" because there is always the potential cost of interest if you carry a balance. There are also other credit card fees that may apply for certain transactions (such as cash advances or purchases made in a foreign currency). But in most cases, if you have a no annual fee card and pay off your account balance in full by the due date on each statement, you won't be charged interest and can use the card at no cost.

• Are there any no fee credit cards?

  There are plenty of cards with no annual fee, and there are even some cards with no interest. But there are no cards that don't charge any fees at all. Other fees include late payment fees, cash advance fees, currency conversion fees etc. However, if you choose the right credit card and use it for everyday purchases and make payments in full, you could avoid fees.

• Can I get a credit card with no annual fee for life and an ongoing low interest rate?

  Yes, there are a few no annual fee, low rate credit cards on the market. You can use the filters on Finder's comparison table to narrow down your search based on rates, fees and other features you want. But keep in mind that $0 annual fees and low rates are generally offered on separate cards – except when one of the features is promotional. For example, a $0 annual fee card may offer an introductory low or 0% interest rate before reverting to a higher standard rate, while a low rate credit card could offer a waived annual fee in the first year.

• I want a no annual fee credit card for travel. What other features should I consider?

  To keep your travel costs down, you may want to consider a credit card with no annual fee and no overseas transaction fees or a card that offers complimentary travel insurance.

• Is there a business credit card with no annual fee?

  While business credit cards can offer no annual fee promotions, most of them charge high annual fees as they come with a lot of extra features. But depending on your circumstances, you may be able to claim the annual fee as a tax deduction.

• Can I get a no annual fee credit card if I have lots of debt or bad credit?

  Having a bad credit rating will limit your chances of being approved and getting a credit card, regardless of whether there's an annual fee. You can use our bad credit rating credit card guide to see what credit alternatives are available for applicants with a negative credit history.

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