No Annual Fee Credit Card
A No Annual Fee credit card works exactly as its name implies: you don’t pay any annual fee to hold the credit card. Two types of no annual fee card are available, those with a promise of no annual fee for the life of the card and those that simply waive the card fee for an initial period of generally 12 months, post which the credit card fee will revert to the cards standard annual fee.
No annual fee credit cards are ideal if you only want to hold a credit card for emergency purposes as this means they won’t have to pay for a service they don’t regularly use. On the downside, most No Annual Fee credit cards include few features, they may also charge higher interest rates, compared to credit cards with annual fees.