Is a No Annual Fee Credit Card Right for You?
Tuesday April 7, 2009
No annual fee credit cards are not the most popular with banks due to their very definition. To combat this lack of annual fees attached banks tend to have put higher interest rates and cash advances rates on this style of credit cards, meaning that if a cardholders doesn't follow the outlined criteria they may end up paying more than they would on a different, say the low interest rate credit cards.
No annual fee credit cards are ideal for those of us who rarely use their credit card and pay back almost immediately, before any interest free days have passed. Banks who offer this type of credit card will often have attached higher rates in order to have some form of return on investment.
Banks have based their no annual fee credit cards on the assumption that the credit cardholders may not be able to make the repayment within the allocated interest free time, and thereby end up having to pay a higher interest rate.
Although, for those who truly use their credit cards only in emergencies and are able to make repayment immediately, the no annual fee credit card may be ideal.
To ensure that you are getting the best deal, compare credit cards here
News Archive
2012
2010
2009
- December [5]
- November [8]
- October [10]
- September [9]
- August [14]
- July [10]
- June [9]
- May [3]
- April [9]
- March [9]
- February [13]
- January [15]
2008
- December [39]
- November [48]
- October [78]
- September [45]
- August [39]
- July [62]
- June [30]
- May [42]
- April [30]
- March [50]
- February [25]
- January [33]