How to Find Credit Cards With No Annual Fee?

Credit cards can be a tricky subject. They can be a great financial tool to help you on your way to financial freedom. They can also be the fastest way to send yourself in a debt spiral and you may not be able to get out. It is really easy to use your credit card without any real knowledge about how it is impacting you. The best thing you can do is truly understand how credit cards work for you and against you. When you have a better understanding of how credit cards work, you can use them to your benefit. Armed with knowledge, you can look for the right credit card for you, including credit cards with no annual fee. Continue reading to find out more credit card information.

The Basics Of A Credit Card

I always like to start at the beginning with the most basic elements. After all, how can you find a credit card with no annual fee that is right for you if you do not understand the basics of a credit card. If you begin using a credit card without really understanding how it works, you are setting yourself up for financial disaster. How about you make a promise to yourself right now not to set yourself on a path for disaster?

The basic premise behind credit cards is the same. Some credit cards offer different promotions and the fees may vary. There are also credit cards with no annual fee. A credit card is literally a plastic card that is backed by a bank or something other financial institution. When you are given a credit card, it has a credit limit. This is called revolving credit. For purposes of this article, I will say you are given a credit card with a limit of $2,000. That means that you have $2,000 at your disposal to use how you want.

The catch is you have to pay back whatever you use in about 30 days. If you do not pay the full amount back, you are charged interest. The bank gives you a minimum amount that you have to pay each month. It is a percentage of how much you have used. The more credit you use that means the higher your minimum payment is. Whatever money you pay back, you have available for your use. That is why it is called revolving credit.

The Basics In Numbers

To illustrate, I will show you this example with numbers:

$2,000 available credit

You spend $500.

You now have $1,500 available credit

In 30 days, you have a minimum payment of $75. That means you have to pay at least $75. You pay $500.

Your available credit is now $2,000.

Same example, except you only pay $300. Your available credit is up to $1,800 and you have to pay interest on what you did not pay. If your credit card has an interest rate of 15 percent, that is $45, so your new balance is $345. And if you do not use your credit card for the entire month, you will owe $345 on your next bill. If you do not pay that entire amount, you will have interest charges again.

What Is An Annual Fee?

Credit cards with no annual fee are just that, a fee that the credit card charges you every year simply to use their credit card. The annual fee can start around $39 and easily go up to $550. That jaw-dropping amount is for the Platinum American Express card. There are many perks to pay for this card, including free Global Entry. These perks are geared to someone who travels often and in first class. This group of people is not your average run of the mill credit card holders and can afford to spend $550 for the benefit, which there are many, of carrying a platinum Amex card. For some, this card is worth the price. I am going to go out on a limb and guess that you are not one of those people.

The bottom line is you want to look for credit cards with no annual fee. There are plenty of them so there really is no reason to pay a fee. Now, that being said, some credit cards offer an amazing deal on say, airline miles. If you use your credit card properly, you can get many free airline tickets per year. That could save you thousands of dollars. So, it may be worth it to you to pay $100 a year to save thousands. However, you have to travel often anyway and make good use of those points for it to be worth it. You have to determine for yourself if this is the right credit card for you.

The Best Credit Cards With No Annual Fee

There are many credit cards with no annual fee that you can select. While doing the research is fairly simple, I have also done some research for you and found the top credit cards with no annual fee. I am listing them here so you can review them to get an idea of the type of credit card that is right for you.

CapitalOne QuickSilver Cash Rewards Credit Card

CapitalOne QuickSilver Cash Rewards Credit CardThe CapitalOne QuickSilver is a great credit card with no annual fee option. This card offers a promotion of 0 percent interest for 15 months. Keep in mind, the rate will go up to between 15.74 percent to 25.74 percent after the 15 month period ends. This credit card also offers 1.5 percent cash back on all purchases. That is unlimited cash back and you do not have to activate any offers to get the cash back.

The cash back does not expire and there is no limit to how much you can earn or cash in. Capital One also offers a one time cash bonus of $150 once you spend $500 in the first 3 months of opening the account. If you do not spend $500 within the first 3 months, you will not receive the $150. They do not have any foreign transaction fees.

Chase Freedom Unlimited Credit Card

Chase Freedom Unlimited Credit CardThe Chase Freedom Unlimited Card also no annual fee and also has a promotional offer of 15 months with 0 percent interest. After that 15 month period, the interest rate may go up to between 16.74 and 25.49 percent. This card offers an unlimited 1.5 percent back on all purchases. There is no minimum for redeeming the cash back. Even better, the cash back does not expire. If you spend more than $500 in your first 3 months after opening the account, you get a $150 bonus.

DiscoverIt Chrome

DiscoverIt ChromeDiscover offers on of the best credit cards with no annual fee. In addition to not having an annual fee, they give you cash back and then they match the cash back. You do not have to sign up for any of the cash back options, but the percentage changes based on the items you purchase. So you can earn 2 percent cash back at restaurants and gas stations on up to $1,000 of purchases at those types of retailers per quarter.

You then earn 1 percent cash back on every other purchases. And yes, Discover matches it all. There is no limit. These rewards never expire and you can redeem them at any time. Discover’s customer service department is 100 percent located in the US. They offer you a FICO score card to help you keep an eye on your credit score. You can also sign up for credit alerts for free.

Wells Fargo Propel American Express Card

Wells Fargo Propel American Express CardThe Wells Fargo Propel American Express card is a credit card with no annual fee. This card gives you bonus points when you make purchases. You receive 3x the points on restaurants, travel such as airline tickets, hotels, and car rentals, gas purchases. And you earn 1x the points for all other purchases. You get bonus points so that when you spend $3,000 in purchases in the first 3 months, you get 30,000 bonus points. 30,000 bonus points equals $300 in cash. This card does not have a foreign currency fee.

Bank of America Cash Rewards Credit Card

Bank of America Cash Rewards Credit CardThe Bank of America Cash Rewards Credit Card does not have an annual fee. If you make $1,000 in purchases within the first 90 days of opening the credit card, you receive $200 cash bonus rewards. This card offers an introductory interest rate of 0 percent. This rate is good for 15 months. After that, you can expect the interest rate to go up to anywhere between 15.49 to 25.49 percent. The cash back is tiered and may seem a little complicated.

You get 3 percent back on a category of your choosing, so ideally you would pick the category in which you spend the most money. You get 2 percent back at grocery stores and wholesale clubs, but there is a limit of $2,500 in combined purchases per quarter. All other purchases have a 1 percent unlimited cash back. You also have the opportunity to become a preferred rewards member, which gets you 25 to 75 percent more back per purchase.

How Do I Pick Credit Cards With No Annual Fee?

I am sure you know by now that there are a ton of credit cards available to you. So how do you pick the right credit cards with no annual fee?

When you are looking for the right credit card for you, there are some points to which you should pay attention. Always make sure you know the lender who is offering the credit card. If you have not heard of this lender, it could be a scam. You want to make sure you protect yourself. Make sure this credit card gives you what you want and need.

For example, if you are looking for a credit card to which you want to transfer a balance, you want one with a 0 percent balance transfer. If a credit card is not going to meet your needs, look for another one. There are too many available for you to settle on the wrong one. Always, always, always be sure to read the fine print. Hidden in the details is the information you really need to know. This is where you will find fees, end dates for promotions, and the dreaded interest.

The best way to do some credit card research is to use a website to compare credit cards. This is a credit card shopping trick that many people may not want to share. These types of websites compare major credit cards and outline the positives and negatives of all of them. It tells you what promotions they are offering to help you select the right credit card for you. It even highlights credit cards with no annual fee.

There are many sites available with information about the best credit cards with no annual fee. They compile the best of the best for you, so you do not have to do a lot of digging to find one. These sites list all the pros and cons of all credit cards with no annual fee and even gives you the ability to see a side by side comparison. Once you select the card you want, you are able to click the apply button directly from these sites. Usually, that redirects to the website of the credit card. You can fill out the application and provide any required documents directly from the website. Usually, you have a response in minutes letting you know if you are approved.

Key Reminders About Credit Card Use

While credit cards with no annual fee are a great tool for you, I also want to take a moment to remind you to use your credit card responsibly. It can be very easy to fall into the dangerous zone of not being able to afford your credit card bill. A credit card company is in the business of making money. They make money when you accrue interest on your balance. The more interest you accrue, that means the more money they make. They do prefer that you pay your bills, but like it when you get interest on your bill.

Another pitfall of credit cards is that it becomes really easy to purchase items that you just cannot afford. Since you are not paying for it right away, there is a tendency to forget that you still have to pay the bill at some point. It is also easy to be unaware of how much you are spending and not realize it until you get your bill with the minimum payment. It is at that point that you realize you can only afford the minimum payment and this begins the dangerous slide. Let me show you with numbers what happens when you can only afford the minimum payment.

You have a credit limit of $2,000. You spend $1,800 of it. Your minimum payment is $200. You can only afford a $200 payment. Now you owe $1,600. You are hit with a 20 percent interest of $320, so know you owe $1,820. Your minimum payment is $210 and that is all you can afford. Now, you owe $1610, but you get hit with another $320 in interest and it goes back up to $1830. Do you see the nasty cycle you can get yourself caught in? The best thing you can do for yourself is not get caught in that cycle. Do not spend more money than you can afford to pay.

Conclusion

I have talked quite a bit about credit cards with no annual fee and how they can benefit you. It is important that you have a complete understanding of credit cards before you begin using them. If you do not understand how they work, you are surely setting yourself up for financial disaster. Make sure that credit cards are right for you before you begin to use them.

While there are many credit cards with no annual fee available to you, it can become overwhelming trying to determine which one to select. The best way to do this is to use a website that compares the credit cards for you and gives you all the benefits they have to offer. This makes your selection process much easier.