The best in no annual fee credit cards
14 April 2008
Credit cards with no annual fees tend to have higher interest rates, and will generally not include any interest free days on purchases. While this may at first sound unreasonable, it must be remembered that if you were to always repay your balance within the interest free period, then your credit card provider would only make money from you due to annual fees. No annual fee means your credit card provider must guarantee payment for your use of the card in other ways.
The St. George No Annual Fee card is excellent for those who don't use credit often enough to justify a high annual fee. A purchase rate of 17.75% p.a. may seem high, but considering other no annual fee credit cards such as the Commonwealth Bank No Annual Fee Card have a rate as high as 18.24% p.a. you can be sure St. George are giving you the best deal they can.
Alternatives to the no annual fee card are low fee varieties. These also have a relatively high interest rate, but tend to be coupled with interest free days in order to offset the minimal cost. For instance, the NAB Visa Mini offers an interest rate of 18.74% p.a. and interest free on purchases for up to 55 days for only $24 per year. You could easily keep the cost of your credit card usage down to just that amount per year through clever the clever usage of interest free days.
Please visit our comparison pages for more examples of excellent no annual fee and low annual fee credit cards.
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