Rewards Credit Card with No Annual Fee

Credit Cards which charge No Annual Fee and include a Reward Program are a very rare thing, as credit card providers tend to try and offset some of the costs associated with running the rewards program, by charging an annual cedit card fee.

Rewards Credit Cards with No Annual Fee

Of all rewards credit cards available in Australia less than 10% come with the promise of no annual card fee, and the number is reducing each year. So how do you find these cards and do they offer good value? These are two of the questions we will answer in this guide to No annual fee reward credit cards.


Is the $0 annual fee for real?

A small number of Reward credit cards do offer a $0 annual fee, but it is not always so clear cut as there are 2 types of $0 annual fee credit card, and the no annual fee on these two card types is very different.

1. No annual fee for a promoted period.

Many credit card providers use the $0 annual fee proposition as a means of enticing new cardholders to sign up for a new credit card. The key feature of these promotional offers is that they only last for a specified period, which is generally 12 months. So once you have held the card for 12 months the card fee reverts to the cards standard fee.

2. No Annual fee for the life of the card

Rewards credit cards with no annual fee for the life of the card, as opposed to the duration of a promotional or introductory period are rare, but can be found, and make the promise that for as long as you are a cardholder you will be charged no annual fee.


Are their any hidden costs with No Annual Fee Reward Credit Cards?

No, the costs associated with using these reward credit cards are the same as other credit cards though the competitiveness of these costs is something you should consider carefully. It’s common for $0 annual fee cards costs to be at the higher end of the range, so expect to see a higher purchase rate on no annual fee cards, furthermore late payment fees and foreign currency transaction fees will also tend to be in the higher ranges.


Do No Annual Fee Reward Credit Cards allow Balance Transfers?

Balance Transfers are regularly offered by No Annual Fee Reward Credit Cards but the Balance Transfer offers should be assessed carefully versus other offers in the market, as rewards cards do not tend to offer the most competitive Balance Transfer offers as their focus is on delivering Rewards to the cardholder not interest savings.

Frequently Asked Questions

What types of No Annual Fee Credit Card are available?

Broadly speaking, there are two types of no annual fee cards:

No annual fee for life - This is the main type. These cards charge no annual fee for life, which means you don’t have to worry about switching to a different card provider after a year to void paying the annual fee.

No annual fee for the first year - Before applying for a credit card offering no annual for the first year only, carefully consider whether or not you would be comfortable paying the full annual fee once the introductory offer expires, particularly focusing on whether the benefits the credit card offers, such as lower interest rates, outweigh the cost of the annual fee.

There are also credit cards with a discounted annual fee that typically only applies to the first year. Just as is the case with offers of no annual fees for the first year, you should compare the cost of the full annual fee you’ll be charged after the first year.

Do any business credit cards with rewards have no annual fee?

Business Credit Cards offering rewards and no annual fee are a very rare find. Currently no business cards are offering this. A small number of Business Credit Cards offer rewards and a similar number offer Frequent Flyer Points.