No Annual Fee Credit Card Can Be An Ideal Companion

2007-03-08 10:33:40

( Financial )



One of the greatest innovations for consumers needing a dependable companion is the no annual fee credit card. You have the convenience of a credit card without the burden of paying the annual fee. For as long as you pay off your outstanding balance each month, the no annual fee credit card is, in fact, a handy, short-term loan with no charges!

This would have been near-impossible before. Thanks to competition! A lot of credit card companies in the market are offering several perks to entice consumers’ business. For instance, you have the no fee visa that also comes with other benefits. Some cards have loyalty rewards which you can exchange for airline tickets, appliances or even cash.

There are a lot of people, especially those with mismanaged finances, who would consider the plastic cards as a bane to society. Think, however, of the convenience with having a credit card on hand, particularly during emergency situations. Credit cards also come in handy when you need to pay bills or buy something necessary but do not have cash at the moment.

You can buy stuff over the telephone or through the internet with your plastic card. You can also have your credit card providers cancel transactions for ordered goods that did not arrive. This type of protection is not available if you use cash, debit cards or cheques when ordering.

The other side of the coin is that credit card can heavily penalize you if you mismanage your card. Interest rate on credit cards is not only high, companies also charge late fees, over-the-limit fees and other fees.

The important thing is, first, to know your needs and understand your personality before you even begin scouting for a credit or other types of cards. If you have the discipline and can readily pay off your balance in full each month but would just want the card for convenience, then get a no annual fee credit card.

You can also consider a card that has an interest-free period (it usually comes, though, with an annual fee). While this card charges higher rates, it would not really matter to you since you would have paid it off before interests are computed on your purchases.

If you cannot pay your monthly balance in full, then go for one with a low interest rate.

Or you might want to consider having a debit card instead. It has the convenience of a credit card but money will be deducted from your bank account upon transaction. These days, however, a debit card fee is commonly being charged to users for PIN-based debit transactions. And remember not to use your debit card for on-line transactions because your account number might get stolen on the Internet.

As a consumer, you owe it to yourself to be smart and scout for the best card deal.


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