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.
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 |
| Visit provider | |
Teachers Mutual Bank Credit Card | |
| Purchase rate | 11.50% p.a. |
| Key feature | 7.90% p.a. intro rate offer for 6 months |
| Visit provider | |
UniBank Credit Card | |
| Purchase rate | 11.50% p.a. |
| Key feature | 7.90% p.a. intro rate offer for 6 months |
| Visit provider | |
Heritage Bank Gold Low Rate | |
| Purchase rate | 11.80% p.a. |
| Key feature | 0% p.a. balance transfer for 12 months |
| Visit provider | |
Hume Bank Value Visa | |
| Purchase rate | 11.95% p.a. |
| Key feature | No fee for additional cardholders |
| Visit provider | |
ING Orange One Low Rate | |
| Purchase rate | 11.99% p.a. |
| Key feature | No international transaction fees |
| Visit provider | |
Bank Australia Visa Credit Card | |
| Purchase rate | 12.39% p.a. |
| Key feature | Offers 24/7 fraud monitoring |
| Visit provider | |
QBANK Bluey Visa Credit Card | |
| Purchase rate | 12.49% p.a. |
| Key feature | 0% balance transfer for 12 months |
| Visit provider | |
Bank First Visa Classic Credit Card | |
| Purchase rate | 12.54% p.a. |
| Key feature | Up to 55 days interest free on purchases |
| Visit provider | |
Qudos Bank Lifestyle | |
| Purchase rate | 12.84% p.a. |
| Key feature | 4.99% p.a. intro rate offer for 5 months |
| Visit provider | |
Horizon Bank Visa Credit Card | |
| Purchase rate | 12.95% p.a. |
| Key feature | 4.99% p.a. intro rate offer for 5 months |
| Visit provider | |
BankVic Low Rate Visa | |
| Purchase rate | 13.95% p.a. |
| Key feature | 8.99% intro rate for 6 months |
| Visit provider | |
Police Credit Union Extralite Credit Card | |
| Purchase rate | 13.99% p.a. |
| Key feature | Guardian Fraud Protection Service available |
| Visit provider | |
Bankwest Zero Mastercard/Platinum Mastercard | |
| Purchase rate | 14.99% p.a. |
| Key feature | 0% p.a. balance transfers for 28 months |
| Visit provider | |
Qudos Bank Lifestyle Plus | |
| Purchase rate | 16.35% p.a. |
| Key feature | 4.99% p.a. intro rate offer for 5 months |
| Visit provider | |
BankVic Qantas Visa Credit Card | |
| Purchase rate | 18.95% p.a. |
| Key feature | 8.99% intro rate for 6 months |
| Visit provider | |
American Express Essential Credit Card | |
| Purchase rate | 18.99% p.a. |
| Key feature | Earn up to 1.25 points per $1 spent |
| Visit provider | |
Virgin Money No Annual Fee Credit Card | |
| Purchase rate | 18.99% p.a. |
| Key feature | 0% p.a. intro rate offer for 12 months |
| Visit provider | |
Bendigo Bank Ready Credit Card | |
| Purchase rate | 19.99% p.a. |
| Key feature | $0 international transaction fees |
| Visit provider | |
Coles No Annual Fee Mastercard | |
| Purchase rate | 19.99% p.a. |
| Key feature | O% p.a. for 6 months, plus 20,000 sign up bonus points |
| Visit provider | |
HSBC Premier World Mastercard (Rewards Plus) | |
| Purchase rate | 19.99% p.a. |
| Key feature | Earn 1 reward point per $1 spent |
| Visit provider | |
Bank of Melbourne No Annual Fee Visa | |
| Purchase rate | 20.74% p.a. |
| Key feature | Get 3 additional cardholders for free |
| Visit provider | |
BankSA No Annual Fee Visa | |
| Purchase rate | 20.74% p.a. |
| Key feature | Get 3 additional cardholders for free |
| Visit provider | |
St.George Bank No Annual Fee Visa | |
| Purchase rate | 20.74% p.a. |
| Key feature | Get 3 additional cardholders for free |
| Visit provider | |
Kogan.com Money Credit Card | |
| Purchase rate | 20.99% p.a. |
| Key feature | Earn $300 Kogan.com credit |
| Visit provider | |
Citi Simplicity Card | |
| Purchase rate | 21.49% p.a. |
| Key feature | 0% p.a. balance transfer for 6 months |
| Visit provider | |
American Express Qantas Discovery Card | |
| Purchase rate | 23.99% p.a. |
| Key feature | Earn 0.75 Qantas Points per $1 spent |
| Visit provider | |
American Express Velocity Escape Card | |
| Purchase rate | 23.99% p.a. |
| Key feature | Earn 0.75 Velocity Points per $1 spent |
| Visit provider | |
Latitude 28° Global Platinum Mastercard | |
| Purchase rate | 26.99% p.a. |
| Key feature | 55 days interest free on purchases |
| Visit provider | |
Nimble Anytime Virtual Mastercard | |
| Purchase rate | 37-47% p.a. |
| Key feature | Interest rate depends on credit rating |
| Visit provider |
| Purchase rate | Key feature | Visit provider | |
|---|---|---|---|
American Express Low Rate Credit Card | 10.99% p.a. | Offers card purchase and refund cover | |
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 | |
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 | |
American Express Essential Credit Card | 18.99% p.a. | Earn up to 1.25 points per $1 spent | |
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. for 6 months, plus 20,000 sign up bonus points | |
HSBC Premier World Mastercard (Rewards Plus) | 19.99% p.a. | Earn 1 reward point per $1 spent | |
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 $300 Kogan.com credit | |
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 | |
American Express Velocity Escape Card | 23.99% p.a. | Earn 0.75 Velocity Points per $1 spent | |
Latitude 28° Global Platinum Mastercard | 26.99% p.a. | 55 days interest free on purchases | |
Nimble Anytime Virtual Mastercard | 37-47% p.a. | Interest rate depends on credit rating |
Credit cards with no annual fee (conditional offers)
CommBank Neo | |
|---|---|
| $0 annual fee conditions | $0 but monthly fee ($12 - $22) 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 | |
Bank of Us Visa Credit Card | |
| $0 annual fee conditions | $0 if you spend $8k per year |
| 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 |
| Visit provider | |
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 | |
NAB Low Rate Card (balance transfer) | |
| $0 annual fee conditions | $0 in first year, then $59 |
| Purchase rate | 12.49% p.a. |
| Key feature | 0% p.a. balance transfer for 32 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 |
| Visit provider | |
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 |
| Visit provider | |
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 |
| Visit provider | |
Heritage Bank Visa Classic Credit Card | |
| $0 annual fee conditions | $0 if you spend $25k/year |
| Purchase rate | 17.99% |
| Key feature | Up to 55 days interest free on purchases |
| Visit provider | |
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 |
| Visit provider | |
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 |
| Visit provider | |
Westpac Low Fee Card | |
| $0 annual fee conditions | $0 in first year, then $30 |
| Purchase rate | 19.74% p.a. |
| Key feature | Up to 55 interest free days on purchases |
| Visit provider | |
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 |
| Visit provider | |
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 |
| Visit provider | |
ANZ First Credit Card | |
| $0 annual fee conditions | $0 in first year then $30 |
| Purchase rate | 20.49% p.a. |
| Key feature | Offers $100 cash back (T&Cs apply) |
| Visit provider | |
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 | 20.49% p.a. |
| Key feature | Complimentary travel insurance |
| Visit provider | |
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 | |
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 up to 80,000 bonus CommBank Awards points or up to 40,000 Qantas Points. |
| Visit provider | |
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 |
| Visit provider | |
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 |
| Visit provider | |
Latitude GO Mastercard | |
| $0 annual fee conditions | $0, but $9.95 fee applies when card balance is more than $10. |
| Purchase rate | 26.99% p.a. |
| Key feature | 6 months interest free on purchases of $250 or more. |
| Visit provider |
| $0 annual fee conditions | Purchase rate | Key feature | Visit provider | |
|---|---|---|---|---|
CommBank Neo | $0 but monthly fee ($12 - $22) 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 | |
Bank of Us Visa Credit Card | $0 if you spend $8k per year | 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 | |
NAB Low Rate Card (balance transfer) | $0 in first year, then $59 | 12.49% p.a. | 0% p.a. balance transfer for 32 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 | |
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 | |
Heritage Bank Visa Classic Credit Card | $0 if you spend $25k/year | 17.99% | 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 in first year, then $30 | 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 | |
ANZ First Credit Card | $0 in first year then $30 | 20.49% 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 | 20.49% p.a. | Complimentary travel insurance | |
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 | |
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 up to 80,000 bonus CommBank Awards points or up to 40,000 Qantas Points. | |
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. | 26.99% p.a. | 6 months interest free on purchases of $250 or more. |
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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
Save up to $450 by skipping the annual fee
A cheap way to access a credit card if you need one
Combine with a low interest rate to save more
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.
Some credit cards for businesses also come with no annual fee.
Types of no annual fee credit card offers
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.
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.
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.
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 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
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.
AS FEATURED IN
Written by
Editor
Sean Callery
Reviewed by
Credit Cards Expert
Brad Kelly
