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No Annual Fee Credit Cards

Sean Callery Editor Money.com.au

Sean Callery

Shaun McGowan Money.com.au founder

Reviewed by

Shaun McGowan

Find the best no annual fee credit card among 30+ providers in Australia with Money. Sort and filter your options based on what you need. Some no annual fee card offers are subject to conditions - we explain what you need to know.

No Annual Fee Credit Cards

Sean Callery Editor Money.com.au

Sean Callery

Shaun McGowan Money.com.au founder

Reviewed by

Shaun McGowan

Find the best no annual fee credit card among 30+ providers in Australia with Money. Sort and filter your options based on what you need. Some no annual fee card offers are subject to conditions - we explain what you need to know.

Sponsored: Coles No Annual Fee Mastercard

Points per $1

0.5

On everyday spend

Sign up bonus

10,000

Flybuys

Card fee

$0

Per annum

Purchase rate

20.74%

Per annum

Interest free

Up to 55

Money’s take

This is one of the rare credit cards that combines no annual fee with the ability to earn rewards points. With the Coles No Annual Fee Mastercard you can earn up to 1 Flybuys point per $2 on eligible ...

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Pros

  • Earn points on spending (up to a cap)
  • Earn bonus sign-up points (minimum spend applies)
  • No annual fee
  • No fee for extra cards for family members or friends
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Cons

  • High interest rate on purchases
  • Expensive for cash advances
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Additional information

      • Card Type: Mastercard

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      Rates updated 02 December 2024

      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:
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      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).

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      Want a basic card

      No annual fee cards can work well for people who want access to credit, with no frills.

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      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.

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      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.

      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.

      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.

      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.

      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)
      • 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:

      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.

      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:
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      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.

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      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.

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      Additional features

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

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      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.

      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 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.

      Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.

      Shaun McGowan is the founder of Money.com.au. He's determined to help people and businesses pay as little as possible for financial products, through education and building world class technology. Previously Shaun co-founded CarLoans.com.au and Lend.

      Important information

      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:

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      • Default sort (main credit card page): 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.
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      • 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.
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      • Low rate cards: Consumer credit cards sorted by lowest purchase rate, then lowest ongoing annual card fee, then alphabetically by provider/product name.
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      • 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.
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      • 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.
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      • 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 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
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      • 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.
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      • 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.
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      • Business/corporate credit 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.

      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 based on their product attributes. However, 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 do not sort or filter comparison tables based on whether or not we will make money from a particular card, but we may earn a commission if you are issued with a card via a link from our organic comparison tables.

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      Assumptions:

      • The calculations do not account for changes in interest rates or other market conditions that may occur.
      • Results are approximations and may differ from actual payment schedules or amounts.
      • The calculator does not include all fees and charges that you may incur in relation to a financial product.

      Limitation

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