No annual fee credit cards

  • Find the best no annual fee credit card among 30+ providers in Australia.
  • Some no annual fee card offers are subject to conditions – we explain what you need to know.
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Featured offer: Qantas American Express Discovery Card

Enjoy a $0 annual card fee and earn Qantas Points with no limit on the number of points you can earn.

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Credit cards with no annual fee (ongoing)

American Express Low Rate Credit Card

Purchase rate

10.99% p.a.

Key feature

Offers card purchase and refund cover

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Credit Union SA Workplace Benefits Credit Card

Purchase rate

11.49% p.a.

Key feature

0% p.a. interest for the first 6 months

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Firefighters Mutual Bank

Purchase rate

11.50% p.a.

Key feature

7.90% p.a. intro rate offer for 6 months

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Healthcare Professionals Bank

Purchase rate

11.50% p.a.

Key feature

7.90% p.a. intro rate offer for 6 months

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Teachers Mutual Bank Credit Card

Purchase rate

11.50% p.a.

Key feature

7.90% p.a. intro rate offer for 6 months

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UniBank Credit Card

Purchase rate

11.50% p.a.

Key feature

7.90% p.a. intro rate offer for 6 months

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Heritage Bank Gold Low Rate

Purchase rate

11.80% p.a.

Key feature

0% p.a. balance transfer for 12 months

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Hume Bank Value Visa

Purchase rate

11.95% p.a.

Key feature

No fee for additional cardholders

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ING Orange One Low Rate

Purchase rate

11.99% p.a.

Key feature

No international transaction fees (conditions apply)

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Bank Australia Visa Credit Card

Purchase rate

12.39% p.a.

Key feature

Offers 24/7 fraud monitoring

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QBANK Bluey Visa Credit Card

Purchase rate

12.49% p.a.

Key feature

0% balance transfer for 12 months

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Bank First Visa Classic Credit Card

Purchase rate

12.54% p.a.

Key feature

Up to 55 days interest free on purchases

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Qudos Bank Lifestyle

Purchase rate

12.84% p.a.

Key feature

4.99% p.a. intro rate offer for 5 months

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Horizon Bank Visa Credit Card

Purchase rate

12.95% p.a.

Key feature

4.99% p.a. intro rate offer for 5 months

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BankVic Low Rate Visa

Purchase rate

13.95% p.a.

Key feature

8.99% intro rate for 6 months

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Police Credit Union Extralite Credit Card

Purchase rate

13.99% p.a.

Key feature

Guardian Fraud Protection Service available

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Bankwest Zero Mastercard/Platinum Mastercard

Purchase rate

14.99% p.a.

Key feature

0% p.a. balance transfers for 28 months

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Qudos Bank Lifestyle Plus

Purchase rate

16.35% p.a.

Key feature

4.99% p.a. intro rate offer for 5 months

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BankVic Qantas Visa Credit Card

Purchase rate

18.95% p.a.

Key feature

8.99% intro rate for 6 months

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Virgin Money No Annual Fee Credit Card

Purchase rate

18.99% p.a.

Key feature

0% p.a. intro rate offer for 12 months

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Bendigo Bank Ready Credit Card

Purchase rate

19.99% p.a.

Key feature

$0 international transaction fees

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Coles No Annual Fee Mastercard

Purchase rate

19.99% p.a.

Key feature

O% p.a. on purchases for 6 months (apply by 30 June 2024)

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HSBC Premier World Mastercard (Rewards Plus)

Purchase rate

19.99% p.a.

Key feature

Earn 1.5 reward points per $1 spent (capped)

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HSBC Premier World Mastercard (Qantas option)

Purchase rate

19.99% p.a.

Key feature

Earn 1.5 reward point per $1 spent (capped) in the first year (then 1 point in subsequent years)

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Bank of Melbourne No Annual Fee Visa

Purchase rate

20.74% p.a.

Key feature

Get 3 additional cardholders for free

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BankSA No Annual Fee Visa

Purchase rate

20.74% p.a.

Key feature

Get 3 additional cardholders for free

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St.George Bank No Annual Fee Visa

Purchase rate

20.74% p.a.

Key feature

Get 3 additional cardholders for free

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Kogan.com Money Credit Card

Purchase rate

20.99% p.a.

Key feature

Earn $400 Kogan.com credit when you spend $3k on eligible purchases in 3 months from card approval

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Citi Simplicity Card

Purchase rate

21.49% p.a.

Key feature

0% p.a. balance transfer for 6 months

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American Express Qantas Discovery Card

Purchase rate

23.99% p.a.

Key feature

Earn 0.75 Qantas Points per $1 spent on everyday spending

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American Express Velocity Escape Card

Purchase rate

23.99% p.a.

Key feature

Earn 0.75 Velocity Points per $1 spent on everyday spending

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Latitude 28° Global Platinum Mastercard

Purchase rate

27.49% p.a.

Key feature

55 days interest free on purchases

Visit provider
Purchase rateKey featureVisit provider

American Express Low Rate Credit Card

10.99% p.a.

Offers card purchase and refund cover

Credit Union SA Workplace Benefits Credit Card

11.49% p.a.

0% p.a. interest for the first 6 months

Firefighters Mutual Bank

11.50% p.a.

7.90% p.a. intro rate offer for 6 months

Healthcare Professionals Bank

11.50% p.a.

7.90% p.a. intro rate offer for 6 months

Teachers Mutual Bank Credit Card

11.50% p.a.

7.90% p.a. intro rate offer for 6 months

UniBank Credit Card

11.50% p.a.

7.90% p.a. intro rate offer for 6 months

Heritage Bank Gold Low Rate

11.80% p.a.

0% p.a. balance transfer for 12 months

Hume Bank Value Visa

11.95% p.a.

No fee for additional cardholders

ING Orange One Low Rate

11.99% p.a.

No international transaction fees (conditions apply)

Bank Australia Visa Credit Card

12.39% p.a.

Offers 24/7 fraud monitoring

QBANK Bluey Visa Credit Card

12.49% p.a.

0% balance transfer for 12 months

Bank First Visa Classic Credit Card

12.54% p.a.

Up to 55 days interest free on purchases

Qudos Bank Lifestyle

12.84% p.a.

4.99% p.a. intro rate offer for 5 months

Horizon Bank Visa Credit Card

12.95% p.a.

4.99% p.a. intro rate offer for 5 months

BankVic Low Rate Visa

13.95% p.a.

8.99% intro rate for 6 months

Police Credit Union Extralite Credit Card

13.99% p.a.

Guardian Fraud Protection Service available

Bankwest Zero Mastercard/Platinum Mastercard

14.99% p.a.

0% p.a. balance transfers for 28 months

Qudos Bank Lifestyle Plus

16.35% p.a.

4.99% p.a. intro rate offer for 5 months

BankVic Qantas Visa Credit Card

18.95% p.a.

8.99% intro rate for 6 months

Virgin Money No Annual Fee Credit Card

18.99% p.a.

0% p.a. intro rate offer for 12 months

Bendigo Bank Ready Credit Card

19.99% p.a.

$0 international transaction fees

Coles No Annual Fee Mastercard

19.99% p.a.

O% p.a. on purchases for 6 months (apply by 30 June 2024)

HSBC Premier World Mastercard (Rewards Plus)

19.99% p.a.

Earn 1.5 reward points per $1 spent (capped)

HSBC Premier World Mastercard (Qantas option)

19.99% p.a.

Earn 1.5 reward point per $1 spent (capped) in the first year (then 1 point in subsequent years)

Bank of Melbourne No Annual Fee Visa

20.74% p.a.

Get 3 additional cardholders for free

BankSA No Annual Fee Visa

20.74% p.a.

Get 3 additional cardholders for free

St.George Bank No Annual Fee Visa

20.74% p.a.

Get 3 additional cardholders for free

Kogan.com Money Credit Card

20.99% p.a.

Earn $400 Kogan.com credit when you spend $3k on eligible purchases in 3 months from card approval

Citi Simplicity Card

21.49% p.a.

0% p.a. balance transfer for 6 months

American Express Qantas Discovery Card

23.99% p.a.

Earn 0.75 Qantas Points per $1 spent on everyday spending

American Express Velocity Escape Card

23.99% p.a.

Earn 0.75 Velocity Points per $1 spent on everyday spending

Latitude 28° Global Platinum Mastercard

27.49% p.a.

55 days interest free on purchases

Info correct as at 12 March 2024. Check with the provider for full card details, including fees, limits, terms and conditions to make sure the card is right for you. While this is an extensive list of the no annual fee credit cards available, we can't guarantee that all cards available in the market are shown. The table is sorted by lowest interest rate on purchases, then alphabetically by provider name.

Credit cards with no annual fee (conditional offers)

Community First n0w Credit Card

$0 annual fee conditions

$0 but monthly fee ($9 - $19) applies if there is a balance owing

Purchase rate

0% p.a.

Key feature

$0 late fees

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CommBank Neo

$0 annual fee conditions

$0 but monthly fee ($15 - $25) applies if there is a balance owing

Purchase rate

0% p.a.

Key feature

$0 foreign exchange fees

Visit provider

NAB StraightUp Card

$0 annual fee conditions

$0 but monthly fee ($10 - $20) applies if there is a balance owing

Purchase rate

0% p.a.

Key feature

$0 fees on international purchases

Visit provider

Westpac Flex Card

$0 annual fee conditions

$0 if no outstanding balance, otherwise $10/month

Purchase rate

0% p.a.

Key feature

No interest (up to $1,000 credit limit)

Visit provider

Illawarra Credit Union Low Rate

$0 annual fee conditions

$0 in first year, then $50

Purchase rate

8.99% p.a.

Key feature

Up to 45 interest free days on purchases

Visit provider

MOVE Bank Low Rate Card

$0 annual fee conditions

$0 in first year, then $59

Purchase rate

8.99% p.a.

Key feature

0% p.a. balance transfer for 6 months

Visit provider

Greater Bank Visa Credit Card

$0 annual fee conditions

$0 if $12k spent on the card in previous year, otherwise $49

Purchase rate

9.95% p.a.

Key feature

Up to 55 days interest free on purchases

Visit provider

Bank of Us Visa Credit Card

$0 annual fee conditions

$0 if you spend $8k per year, otherwise $39

Purchase rate

9.99% p.a.

Key feature

Up to 58 days interest-free credit

Visit provider

First Option Bank Low Rate Visa

$0 annual fee conditions

$0 in first year, then $48

Purchase rate

10.49% p.a.

Key feature

Up to 45 interest free days on purchases

Visit provider

Bank of Heritage Isle Visa

$0 annual fee conditions

$0 in first year, then $30

Purchase rate

10.76% p.a.

Key feature

Up to 55 interest free days on purchases

Visit provider

Border Bank Visa

$0 annual fee conditions

$0 in first year, then $30

Purchase rate

10.76% p.a

Key feature

Up to 55 interest days free on purchases

Visit provider

Police Bank Visa

$0 annual fee conditions

$0 in first year, then $30

Purchase rate

10.76% p.a

Key feature

Up to 55 interest days free on purchases

Visit provider

Great Southern Bank Low Rate Card

$0 annual fee conditions

$0 in first year, then $49

Purchase rate

11.99% p.a.

Key feature

No fee for up to 9 extra cardholders

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Summerland Credit Union Low Rate

$0 annual fee conditions

$0 in first year, then $49

Purchase rate

11.99% p.a.

Key feature

0% p.a. balance transfer for 9 months

Visit provider

Suncorp Clear Options Standard Credit Card

$0 annual fee conditions

$0 in first year, then $55

Purchase rate

12.74% p.a.

Key feature

0% p.a. for 6 months on purchases and balance transfers

Visit provider

Unity Bank Visa

$0 annual fee conditions

$0 in first year, then $60

Purchase rate

13.24% p.a.

Key feature

7.49% p.a. intro rate for 6 months

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NAB Low Rate Card (balance transfer)

$0 annual fee conditions

$0 in first year, then $59

Purchase rate

13.49% p.a.

Key feature

0% p.a. balance transfer for 28 months

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ANZ Low Rate credit card (balance transfer offer)

$0 annual fee conditions

$0 in first year, then $58

Purchase rate

13.74% p.a.

Key feature

0% p.a. balance transfer for 28 months

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Westpac Low Rate Balance Transfer Offer

$0 annual fee conditions

$0 in first year for existing Westpac customers

Purchase rate

13.74% p.a.

Key feature

0% p.a. for 28 months on balance transfers or $350 cashback

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Hume Bank Clear Visa Credit Card

$0 annual fee conditions

$0 if you spend $8k per year, $30 otherwise

Purchase rate

14.95% p.a.

Key feature

Earn loyalty points for every $1 you spend

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Heritage Bank Visa Classic Credit Card

$0 annual fee conditions

$0 if you spend $25k/year, $55 otherwise

Purchase rate

17.99% p.a.

Key feature

Up to 55 days interest free on purchases

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MoneyMe Freestyle Credit Card

$0 annual fee conditions

$0 on credit limits up to $3k ($5 monthly fee apples if card balance is above $20).

Purchase rate

18.74%-23.74% p.a depending on credit score

Key feature

Earn cash back at 2,000+ stores

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Summerland Credit Union Rewards

$0 annual fee conditions

$0 in first year, then $79

Purchase rate

18.99% p.a.

Key feature

1 point per $2 spent on eligible purchases

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Westpac Low Fee Card

$0 annual fee conditions

$0 if you spend $5k per year, $30 otherwise

Purchase rate

19.74% p.a.

Key feature

Up to 55 interest free days on purchases

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HSBC Platinum Credit Card

$0 annual fee conditions

$0 in first year, then $149

Purchase rate

19.99% p..a

Key feature

0% p.a. on balance transfers for 12 months

Visit provider

HSBC Platinum Qantas Credit Card

$0 annual fee conditions

$0 in first year, then $299

Purchase rate

19.99% p.a.

Key feature

1.5 Qantas points for every $1 spent on eligible purchases up to $120k in first 12 months

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HSBC Star Alliance Card

$0 annual fee conditions

$0 in first year, then $450

Purchase rate

19.99% p.a.

Key feature

Earn uncapped Star Alliance Points

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Virgin Australia Velocity Flyer Card (balance transfer)

$0 annual fee conditions

$0 in first year, then $129/year

Purchase rate

20.74% p.a.

Key feature

0.66 Velocity Points per $1 spent on eligible transactions

Visit provider

ANZ First Credit Card

$0 annual fee conditions

$0 in first year then $30

Purchase rate

20.99% p.a.

Key feature

Offers $100 cash back (T&Cs apply)

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ANZ Platinum

$0 annual fee conditions

$0 in first year and subsequent years if $20k/year spent on card in previous year, $87 otherwise

Purchase rate

20.99% p.a.

Key feature

Complimentary travel insurance

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Commonwealth Bank Low Fee

$0 annual fee conditions

$0 monthly fee if you spend at least $300/month, otherwise $3/month fee applies

Purchase rate

20.99% p.a.

Key feature

Up to 55 interest free days on purchases

Visit provider

Commonwealth Bank Smart Awards (Rewards Option)

$0 annual fee conditions

$0 if you spend $2k during statement period. Otherwise $19/month.

Purchase rate

20.99% p.a.

Key feature

Earn 25,000 CommBank Awards points each month when you spend $1,500 or more per month for the first three months

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Commonwealth Bank Ultimate Awards

$0 annual fee conditions

$0 if you spend $4k during statement period. Otherwise $35/month.

Purchase rate

20.99% p.a.

Key feature

Earn up to 3 Awards points or 1.2 Qantas Points for every $1 spent

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American Express Platinum Edge Credit Card

$0 annual fee conditions

$0 in first year, then $195/year

Purchase rate

23.99% p.a.

Key feature

Up to 3 points per $1 spent

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Latitude GO Mastercard

$0 annual fee conditions

$0, but $9.95 fee applies when card balance is more than $10.

Purchase rate

27.49% p.a.

Key feature

6 months interest free on purchases of $250 or more.

Visit provider
$0 annual fee conditionsPurchase rateKey featureVisit provider

Community First n0w Credit Card

$0 but monthly fee ($9 - $19) applies if there is a balance owing

0% p.a.

$0 late fees

CommBank Neo

$0 but monthly fee ($15 - $25) applies if there is a balance owing

0% p.a.

$0 foreign exchange fees

NAB StraightUp Card

$0 but monthly fee ($10 - $20) applies if there is a balance owing

0% p.a.

$0 fees on international purchases

Westpac Flex Card

$0 if no outstanding balance, otherwise $10/month

0% p.a.

No interest (up to $1,000 credit limit)

Illawarra Credit Union Low Rate

$0 in first year, then $50

8.99% p.a.

Up to 45 interest free days on purchases

MOVE Bank Low Rate Card

$0 in first year, then $59

8.99% p.a.

0% p.a. balance transfer for 6 months

Greater Bank Visa Credit Card

$0 if $12k spent on the card in previous year, otherwise $49

9.95% p.a.

Up to 55 days interest free on purchases

Bank of Us Visa Credit Card

$0 if you spend $8k per year, otherwise $39

9.99% p.a.

Up to 58 days interest-free credit

First Option Bank Low Rate Visa

$0 in first year, then $48

10.49% p.a.

Up to 45 interest free days on purchases

Bank of Heritage Isle Visa

$0 in first year, then $30

10.76% p.a.

Up to 55 interest free days on purchases

Border Bank Visa

$0 in first year, then $30

10.76% p.a

Up to 55 interest days free on purchases

Police Bank Visa

$0 in first year, then $30

10.76% p.a

Up to 55 interest days free on purchases

Great Southern Bank Low Rate Card

$0 in first year, then $49

11.99% p.a.

No fee for up to 9 extra cardholders

Summerland Credit Union Low Rate

$0 in first year, then $49

11.99% p.a.

0% p.a. balance transfer for 9 months

Suncorp Clear Options Standard Credit Card

$0 in first year, then $55

12.74% p.a.

0% p.a. for 6 months on purchases and balance transfers

Unity Bank Visa

$0 in first year, then $60

13.24% p.a.

7.49% p.a. intro rate for 6 months

NAB Low Rate Card (balance transfer)

$0 in first year, then $59

13.49% p.a.

0% p.a. balance transfer for 28 months

ANZ Low Rate credit card (balance transfer offer)

$0 in first year, then $58

13.74% p.a.

0% p.a. balance transfer for 28 months

Westpac Low Rate Balance Transfer Offer

$0 in first year for existing Westpac customers

13.74% p.a.

0% p.a. for 28 months on balance transfers or $350 cashback

Hume Bank Clear Visa Credit Card

$0 if you spend $8k per year, $30 otherwise

14.95% p.a.

Earn loyalty points for every $1 you spend

Heritage Bank Visa Classic Credit Card

$0 if you spend $25k/year, $55 otherwise

17.99% p.a.

Up to 55 days interest free on purchases

MoneyMe Freestyle Credit Card

$0 on credit limits up to $3k ($5 monthly fee apples if card balance is above $20).

18.74%-23.74% p.a depending on credit score

Earn cash back at 2,000+ stores

Summerland Credit Union Rewards

$0 in first year, then $79

18.99% p.a.

1 point per $2 spent on eligible purchases

Westpac Low Fee Card

$0 if you spend $5k per year, $30 otherwise

19.74% p.a.

Up to 55 interest free days on purchases

HSBC Platinum Credit Card

$0 in first year, then $149

19.99% p..a

0% p.a. on balance transfers for 12 months

HSBC Platinum Qantas Credit Card

$0 in first year, then $299

19.99% p.a.

1.5 Qantas points for every $1 spent on eligible purchases up to $120k in first 12 months

HSBC Star Alliance Card

$0 in first year, then $450

19.99% p.a.

Earn uncapped Star Alliance Points

Virgin Australia Velocity Flyer Card (balance transfer)

$0 in first year, then $129/year

20.74% p.a.

0.66 Velocity Points per $1 spent on eligible transactions

ANZ First Credit Card

$0 in first year then $30

20.99% p.a.

Offers $100 cash back (T&Cs apply)

ANZ Platinum

$0 in first year and subsequent years if $20k/year spent on card in previous year, $87 otherwise

20.99% p.a.

Complimentary travel insurance

Commonwealth Bank Low Fee

$0 monthly fee if you spend at least $300/month, otherwise $3/month fee applies

20.99% p.a.

Up to 55 interest free days on purchases

Commonwealth Bank Smart Awards (Rewards Option)

$0 if you spend $2k during statement period. Otherwise $19/month.

20.99% p.a.

Earn 25,000 CommBank Awards points each month when you spend $1,500 or more per month for the first three months

Commonwealth Bank Ultimate Awards

$0 if you spend $4k during statement period. Otherwise $35/month.

20.99% p.a.

Earn up to 3 Awards points or 1.2 Qantas Points for every $1 spent

American Express Platinum Edge Credit Card

$0 in first year, then $195/year

23.99% p.a.

Up to 3 points per $1 spent

Latitude GO Mastercard

$0, but $9.95 fee applies when card balance is more than $10.

27.49% p.a.

6 months interest free on purchases of $250 or more.

Info correct as at 12 March 2024. Check with the provider for full card details, including fees, limits, terms and conditions to make sure the card is right for you. While this is an extensive list of the no annual fee credit cards available, we can't guarantee that all cards available in the market are shown. The table is sorted by lowest interest rate on purchases, then alphabetically by provider name.

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No annual fee credit cards

No annual fee credit cards in Australia

A no annual fee credit card is a type of credit card that does not charge a fee for access to credit. The fee can be waived for an introductory period, or for the life of the card (often with a minimum yearly spend).

A no annual fee card can help save between $29 and $450 per year in fees (the average credit card fee is around $135). In summary, no annual fee credit cards:

  • Are similar to other credit cards, minus the yearly fee
  • Don’t include the as many rewards as other cards
  • Can include some extra benefits such as insurance
  • Have interest rates that vary massively (so shop around)

Why get a no annual fee credit card

Consolidating debt

Save up to $450 by skipping the annual fee

Best match guarantee

A cheap way to access a credit card if you need one

Credit Score

Combine with a low interest rate to save more

Australian Lenders

Usually a basic card light on expensive frills

How do no annual fee credit cards work?

Credit card providers usually charge an annual fee in return for giving customers access to the credit and the various perks, rewards, and features a card may offer.

A no annual fee credit card doesn’t charge a fee simply for holding the card. The trade off for the cardholder is usually having access to fewer features and perks.

For this reason it’s much more common to see no annual fee on a more basic credit cards. If you’re looking for a credit card offering rewards or a card with frequent flyer perks, you’ll almost always pay an annual fee. For premium cards, the annual fee can be in excess of $1,000.

That said, there are a handful of credit cards with Qantas points that have a $0 annual fee.

Some credit cards for businesses also come with no annual fee.

Types of no annual fee credit card offers

There are cards where the $0 annual fee is built in as long as you hold the card. This is the ideal scenario as you don't need to worry about the card reverting to an annual fee or meeting specific criteria to avoid the fee.

A no-fee introductory offer waives the card’s annual fee for a specific period (usually one year) before reverting to the card’s standard annual fee.

An introductory offer can often be beneficial if combined with a 0% balance transfer. This allows the cardholder to repay the transferred balance, with no interest applying to their balance during the offer period, and no annual fee.

Just be aware of the card’s standard annual fee and rate which the card will revert to.

Other types of no fee credit cards will waive the annual fee provided you to spend a certain amount on the card each month or year.

Some minimum spend offers are for the life of the card. As long as you spend the minimum amount, you theoretically will never pay an annual fee.

Be wary of the trap of spending more money than you otherwise would to reach the spend ‘target’. Doing that would more or less defeat the purpose of saving on an annual fee.

Documents you'll need for home loans - proof of identity

Who can qualify for a no annual fee credit card?

To qualify for a no annual fee credit card you must meet the following qualifying criteria:

  • Be over 18 years of age
  • Be an Australian citizen or permanent resident
  • Earn more than the minimum income (varies between lenders)
  • Have a good credit score
  • Not be bankrupt

Qualifying criteria will vary between lenders and cards, so it’s important to compare no fee credit cards before applying to ensure you are eligible.

For example, it's a good idea to check your credit score before applying.

How to apply for a no annual fee credit card

You can apply for a no annual fee credit card online, over the phone, or at your bank. A key part of the application process is demonstrating that you have the income and assets to repay the full credit limit. To do this, you may need to provide:

  • Personal details
  • Valid I.D. - such as a driver licence or - passport
  • Employment details - including your employment status, employer contact details, salary information, and payslips to verify your income.
  • Your tax file number
  • Details of your assets - such as your home and a vehicle if you own one Details of your current expenses and other loans you may have

If you are self-employed, you will need to provide previous tax assessments instead of payslips. You may also need to provide information from your accountant.

Improve your credit score with Money Matchmaker

How to choose a no fee credit card

A no fee credit card can offer savings in the right circumstances. But how you plan to use your card will help determine it's suitable for. Here are some factors to consider when choosing a no fee credit card:

  • The purchase rate: Watch out for no annual fee credit cards that charge a higher interest rate purchases instead. Ideally look for low fees on a low rate credit card.
  • Additional features: No annual fee cards tend to be low on features, but some will offer the likes of 0% balance transfer offers.
  • Rewards: No annual fee credit cards generally don't include rewards. But some buck that trend. The sweet spot is a no annual fee card that offers some basic rewards.

When comparing no fee credit cards, be sure to check all fees and the purchase rate to work out the true cost of the card and whether it is suitable for your circumstances.

Other fees to watch for on no annual fee credit cards

Remember, the annual fee is just one of the fees you could be charged on a credit card. Others fees to watch for on no annual fee credit cards include:

  • Foreign currency conversion fee - an additional charge for transactions made outside of Australia. Some travel credit cards waive this fee - in fact there are more than 20 products available that offer 0% international credit card fees.
  • Over the counter payment fee - if you pay your credit card bill in person, with fees starting at around $2.
  • Balance transfer fee - either a flat fee or percentage of the balance if you transfer an existing credit card balance to a new card.
  • Over limit fee - charged if your balance exceeds its limit.
  • Late payment fee - charged if you cannot make the minimum repayments on your owing balance.
  • Cash advance fee - charged when making a cash withdrawal, and usually at a higher rate of interest than the card’s purchase rate.
  • Dishonour of direct credit fee - charged if repayments are missed when paying through direct debit.
  • Replacement card fee - charged if the card is lost or damaged.
Credit cards have two different rates

What are the interest rates on no annual fee credit cards?

The interest rates for no annual fee credit cards range from around 8.99% to 26.99% p.a. Although it’s common for the lowest rate advertised on no annual fee cards to be an introductory offer (it may even be a temporary interest-free credit card offer) that reverts to a higher rate after six or 12 months.

Interest is generally calculated daily on the balance owing and is charged once per month. Interest is charged on top of an annual fee. So even if you hold a no fee credit card, you will still pay interest on your balance until it is repaid.

No annual fee credit cards

No annual fee credit card benefits

While a no fee credit card may not include the same level of perks and features as other credit cards, they still offer various benefits in certain situations. People often choose no fee credit cards if they:

  • Want to save money: A no annual fee card can lower the ongoing cost of a credit to zero (if you also avoid interest). You can save anything from $29 - $450 per year in fees.
  • Want a basic card: No annual fee cards can work well for people who want access to credit, with no frills.
  • Don’t use their card often: Even if you don't use the card from one end of the year to the other, it won't cost you anything.
  • Want a credit card for emergencies: As above, if the card is just there for a 'rainy day', you won't pay anything if that rainy day never comes, which it hopefully won't.

No fee credit cards FAQ

Credit card providers charge an annual fee to give cardholders access to credit. A no fee card waives this annual fee either for an introductory period, or for the life of the card and generally with a minimum yearly spend.

You can cancel your no fee credit card before the end of the introductory period, however you should check the cancellation process with your credit card issuer to ensure you are not liable for any additional fees.

As with all credit cards, the best no fee card is the one which suits your spending habits, income, and provides the most benefits for your personal circumstances. Compare no fee cards before applying to find the best card for you.

Low-interest credit cards offer some of the lowest purchase rates, but there may be other fees and charges that make them more expensive. There may be fees for late payment, annual fees, and other penalties.

While no fee credit cards generally do not include rewards, there may be a few available which do (e.g. there are a handful of these credit cards that offer travel insurance as a complimentary add on).

Be aware that no fee cards with rewards or features will generally include a higher purchase rate than those without.

AS FEATURED IN

Written by

Sean Callery Editor Money.com.au

Editor

Sean Callery

Reviewed by

Brad Kelly, Payment Services

Credit Cards Expert

Brad Kelly