How do no annual fee credit cards work?

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. These cards are similar to other credit cards but without the yearly fee, may include fewer rewards, can still offer some basic benefits, and have interest rates that vary widely.

Who can qualify for a no annual fee credit card?

To qualify, you must be over 18, an Australian citizen or permanent resident, earn more than the minimum income required by the lender, have a good credit score, and not be bankrupt. Criteria vary between lenders, so compare before applying.

How to apply for a no annual fee credit card?

You can apply online, by phone, or at a bank. You’ll need to provide personal details, ID, employment information, asset and expense details, and possibly tax records if self-employed. Lenders assess whether you can repay the full credit limit.

How to choose a no fee credit card?

Look at the purchase rate, rewards availability, extra features like balance transfers, and the card’s total cost. Some no fee cards offer rewards or bonus perks, but be sure to weigh these against interest rates and other possible charges.

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

Interest rates range from around 8.99% to 26.99% p.a. Many low rates are introductory offers that revert to higher rates after 6 or 12 months. Interest is calculated daily and charged monthly, even on no annual fee cards.

What are other fees to watch for on no annual fee credit cards?

Other common fees include foreign currency conversion fees, balance transfer fees, cash advance fees, over the counter payment fees, over limit fees, late payment fees, dishonour of direct debit fees, and replacement card fees.

Best No Annual Fee Credit Cards Australia (Entire List!)

Compare no fee credit cards in Australia, with our expert take on each card to help you decide. Read the Important Disclosures.

Rates updated 17 July 2025

No annual fee credit cards in Australia

A no annual fee credit card is a type of credit card that does not charge customers a fee for having the card and being able to access credit.

Some cards have no annual fee ever, whereas for others the annual fee is waived for an introductory period, or for the life of the card but only if the cardholder meets a minimum yearly spend).

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 hundreds of dollars in fees (the average credit card fee is around $135 but is often much higher).

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

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.

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.

Here's a summary of how these cards work:

Are similar to other credit cards, minus the yearly fee

Don’t include as many credit card rewards as other cards

Sometimes still include some extra benefits such as basic insurance

Have interest rates that vary massively (so shop around)

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.

Ongoing $0 annual fee 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.

Introductory no annual fee credit cards

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.

No fee credit cards with minimum spend

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.

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.

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:

1

Personal details

2

Valid I.D. - such as a driver licence or passport

3

Employment details - including your employment status, employer contact details, salary information, and payslips to verify your income

4

Details of your assets - such as your home and a vehicle if you own one

5

Details of your current expenses and other loans you may have

6

Your tax file number

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.

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.

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.

Additional features

No annual fee cards tend to be low on features, but some will offer the likes of 0% balance transfer offers.

Total cost of the card

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.

Balance transfer fee Either a flat fee or percentage of the balance if you transfer an existing credit card balance to a new card.

Cash advance fee A credit card cash advance is charged when making a cash withdrawal, and usually at a higher rate of interest than the card’s purchase rate.

Over the counter payment fee If you pay your credit card bill in person, with fees starting at around $2.

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.

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.

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 fee credit cards FAQ

What does no annual fee mean on a credit card?

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.

Can I cancel my credit card before the annual fee?

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.

What is the best no annual fee credit card?

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.

Are low-interest credit cards the cheapest option?

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.

Do no fee credit cards have rewards?

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.

Will I be charged more to use my credit card to make payments?

With most retailers and merchants, you won't need to pay extra if you pay using a credit card versus a debit card. But sometimes there are higher fees for credit cards. It's usually the same no matter what kind of credit card you have, but some retailers that accept Amex charge a higher fee to those customers, as accepting Amex is often more expensive for businesses versus Visa or Mastercard.

Important Disclosures

Products, features and information displayed

General information only

The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of the credit card product is suitable for you and seek independent financial advice if necessary.

We are not providing you with a recommendation or suggestion about a particular credit product. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to hold a particular credit card.

What products, features and information are shown

While we make every effort to ensure all credit cards available in Australia are shown in our comparison tables, we cannot guarantee that all products are included. Where we become aware of a card that is missing from our tables, we commit to adding it within one business day.

Our product comparisons may not compare all card features and attributes relevant to you.

Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the card issuer. While we do our best to ensure the information provided on this website is accurate, all information on this website is provided without any representation or warranty, either express or implied, being given as to the accuracy, completeness, timeliness, reliability or otherwise of its content. No responsibility is accepted by us for any errors, omissions or any inaccurate information on this website.

How cards are sorted and filtered by default

Users can easily change the sort order and apply product filters to our product comparison tables. However, when you arrive on a page initially or select a particular card type via the ‘card features’, a default sort order is applied as follows:

Default sort (main credit card page): Consumer credit cards sorted by the highest number of reward points earned per $1 spent, then lowest ongoing annual fee, then alphabetically by provider/product name. Partner products are shown first and are ordered based on the sort criteria above, then all products are shown and are sorted based on the same criteria.

No annual fee cards: Consumer credit cards sorted by lowest ongoing annual fee, then the highest number of reward points earned per $1 spent, then alphabetically by provider/product name. Partner products are shown first and are ordered based on the sort criteria above, then all products are shown and are sorted based on the same criteria.

Low rate cards: Consumer credit cards sorted by lowest purchase rate, then lowest ongoing annual card fee, then alphabetically by provider/product name. Partner products are shown first and are ordered based on the sort criteria above, then all products are shown and are sorted based on the same criteria.

Balance transfer cards: Consumer credit cards sorted by lowest balance transfer rate, then longest duration of BT offer, then lowest ongoing annual card fee, then alphabetically by provider/product name. Partner products are shown first and are ordered based on the sort criteria above, then all products are shown and are sorted based on the same criteria.

Rewards and frequent flyer cards: Consumer credit cards sorted by highest rewards/FF points per dollar earned on everyday purchases, then lowest ongoing annual card fee, then lowest purchase rate, then alphabetically by provider/product name. Partner products are shown first and are ordered based on the sort criteria above, then all products are shown and are sorted based on the same criteria.

Cashback cards: Consumer credit cards sorted by highest cashback per dollar earned, then lowest ongoing annual card fee, then lowest purchase rate, then alphabetically by provider/product name. Partner products are shown first and are ordered based on the sort criteria above, then all products are shown and are sorted based on the same criteria.

Interest-free cards/offers: Consumer credit cards sorted by longest 0% purchase rate offer period, then lowest ongoing purchase rate, then lowest ongoing annual card fee, then alphabetically by provider/product name. Partner products are shown first and are ordered based on the sort criteria above, then all products are shown and are sorted based on the same criteria.

Credit cards with lounge access: Consumer credit cards sorted by highest number of free lounge passes, then lowest to highest ongoing annual card fee, then highest to lowest points per dollar earned on everyday spending, then lowest purchase rate, then alphabetically by provider/product name. Partner products are shown first and are ordered based on the sort criteria above, then all products are shown and are sorted based on the same criteria.

No international fee cards/cards with travel insurance: Consumer credit cards sorted by lowest ongoing annual card fee, then highest points per dollar earned on everyday spending, the lowest purchase rate, then alphabetically by provider/product name. Partner products are shown first and are ordered based on the sort criteria above, then all products are shown and are sorted based on the same criteria.

Business credit cards/charge cards: Business cards sorted by highest points per dollar earned on everyday spending, then lowest ongoing annual card fee, then lowest ongoing purchase rate, then alphabetically by provider/product name. Partner products are shown first and are ordered based on the sort criteria above, then all products are shown and are sorted based on the same criteria.

Commission we may earn

We may earn a commission from product providers if you are issued with a credit card via a link from this page. Cards marked as ‘sponsored’ are not selected or positioned on the page solely based on their product attributes. In our comparison tables, products are displayed based on the relevant default sort order and filters applied for that card type, or the sort order and filters selected by a user. We may earn a commission if you are issued with a card via a link from our comparison tables.

No Annual Fee Credit Cards