When researching a credit card in Australia, it is important to note whether or not the card has an annual fee. The cards that commonly charge fees are those that give you something in return, such as a rewards or miles credit card, or any other types of perks.
Why do credit card companies charge annual fees? If you are a person who pays their card off each month, then it is a way for them to make money since they do not get it from your interest. If you are that type of credit card user, then look for a card that does not have an annual fee. This also pertains to credit cards that are used infrequently or for emergency use only.
Sometimes the type of card accounts for the annual fee. More prestigious cards such as Gold Cards or Black Cards, that offer more perks or rewards, will charge a fee to justify the extra services. Often this can be negotiated by the user. Cards that give cash back, special discounts, or travel vouchers will often charge the annual fee to offset their costs.
The Benefits of Annual Fees
Not all annual fees are a bad thing, especially if you receive services that pertain to certain aspect of your lifestyle. For instance if you travel frequently, the annual fee will cover things like frequent flyer miles and travel insurance. Others will provide protection against fraud or credit card theft, with purchases being covered.
Hotel and Restaurant discounts, reward points for shopping with particular vendors, as well as extended warranties on larger purchases of electronics can be provided with the annual fee. When you are shopping around for a new credit card and it has an annual fee, inquire into the potential benefits you will receive. You will also want to compare amounts.
No Annual Fee Cards
If you find that an annual fee is not providing any additional benefits for you, then there are plenty of cards in Australia that do not have them. Below are some options for no annual fee credit cards:
- Westpac 55 Day Card
- BankWest Zero Card
- ANZ First Visa Card
- HSBC Credit Card
- Commonwealth Bank Low Fee Card
When you research the no annual fee cards, be sure to read the fine print. Some cards only offer no annual fees for an introductory period. Others will only keep it if you pay on time and have a particular credit rating. There will also be credit cards that require you to spend a particular amount in a year’s time in order to avoid the fee. You will want to be aware of the particulars in the event the fee shows up on your statement unexpectedly.
Keep in mind that an annual fee does not have to be a bad thing for your credit card; you just need to be aware of what it is for. It may be worth the extra expense if it is conducive to your spending or travel habits.
