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Understanding the basics of credit cards with no annual fees

Paying an annual fee when you have better choices of credit cards on the market with no annual fees is something that you would have to consider based on your financial needs. On the baseline, a credit card with no annual fees is definitely saving dollars as compared to cards that charge you a fee. There are some credit cards on the market that offer you 0% introductory rates, free loan, cashback rewards, travel rewards, merchandise, gift cards, etc.

What factors should be considered when applying for no annual fee credit cards?
The most relevant factor is how the credit card compliments your financial needs, your general spending habits, and your intended use for the card. Different applicants have different needs and the credit card market offers a variety of credit cards without an annual fee for each of these distinct segments. You could possibly choose between a credit card that has a very low interest rate if you are someone who carries a very low credit balance, or you could pick a card without an annual fee which gives you higher rewards like cashbacks in case you are an individual who meets monthly payments without any glitch. Some other choices that you could possibly pick are cards that do not have a foreign transaction fee or a waiver for a fee when you are prone to late payments.

What critical factors should be avoided when applying for a no annual fee credit card?
Don’t pick a credit card because it sounds good, try strategically filtering out ones that do not have features which are valuable to you. If you are looking at a card that generates good rewards, then you might have to consider the perks offered by credit card without annual fee vs. ones offered by a card with annual fees because the latter may have higher rewards for the simple fact that you paid an annual fee. Moreover, when you are an international traveler, then you have to look at features specific to travel and lodging, as well as factors in the card’s physical features such as the inclusion of an EMV chip. If you are considering a card without an annual fee, check to see if the annual fee is applicable throughout the life of the card or if it is just a waiver for the first year.

Is it better to apply for more than one credit card?
One of the perks of holding multiple credit cards is that apart from enjoying the benefits awarded by the cards, you will be able to steadily build up your credit history. Moreover, it also means that you will have to set aside a certain amount to pay up the annual fee for all these cards. It is in these circumstances that getting a no annual fee credit card saves you big in terms of dollars because you get to hold the credit cards for your use without any additional costs. This also requires you to have a high level of self-control in your spending habits because having an open line for too much of credit can ruin your credit history if not managed properly.

Is there any specific time period, say season, to apply for a credit card without annual fee?
Compared to personal credit card users, businesses require a variety of cards with many benefits to fit their financial needs and the rewards as incentives to set off little costs. For example, a business which has a lot of traveling involved for its executives will require a travel rewards card to manage their airline and hotel needs, along with a expenses-carrying card in case they carry a balance due to multiple transactions so that they do not have to worry about interest rates or high penalties.

Two of the best credit cards without annual fee available to applicants are as follows:

Citi®️ Double Cash Card
This is the best pick in term of its flat-rate cash back of around 1% with the additional advantage of getting another 1% upon repayment of the dues of these transactions. There is no annual fee on this card, and there is an attractive introductory offer of 0% APR for carrying out balance transfer for 18 months. The general APR on this card is variable between 14.99% and 24.99%, and the earning structure is simple as there are no restriction or a cap on the spending or redeeming of the points accrued.

Discover It®️ Cashback Match™
This is a great pick in terms of its specific bonus category cashback rewards of about 5% on a spending of around $1500 within these categories, and the standard 1% cashback on all other regular transactions. There is an introductory offer of 0% APR for balance transfers and purchases in the first 14 months, and then regular APR is variable at from 13.49% to 24.49%.