There is a growing trend in the credit card industry now with the introduction of offerings with no fees attached. More persons are realizing the benefits and are opting for these no annual fee credit cards.
Persons often times avoid credit cards because of the exorbitant fees and interest that they have to pay. But these credit cards that attract these high rates are slowly losing ground to the users who want to pay less and earn more.
However, before you get carried away, the regular credit cards do have its advantages as most card holders will benefit from a lot of rewards during the year and most times get incentives to splurge when they really need to. So these regular cards do serve their purpose as well it is up to you to balance your finances properly.
There is a lot of information that you can find through research about these no fees card and you will realize that not all of them is without a charge.
This is why you will hear advisors constantly telling you to always read the fine prints before signing for new cards. You will get the no annual fee credit cards offers from most financial institutions, what you need to do is do your comparisons and look at the additional features that are included; then decide which offer is the right one for you.
When you have a bad credit history, this does not reflect positively for you to get major loans in the future. It is important when applying for any credit card to make sure that you are disciplined to make those monthly payments.
If you can monitor your credit score and control your finances, then go right ahead and take out a credit card. Remember that credit cards comes with the responsibility of monitoring payments and fees; once you start defaulting you are headed in one direction and that is a poor credit rating.
As with all credit cards, these new no fee cards have advantages and disadvantages. So even though the name suggests no payments, there are some charges that can be applied to it.
Here are some things that you need to know about these cards:
1. If you exceed your card limit, some companies will attach a fee, while others will not penalize you.
2. You will pay a service charge if you don't make full payment on your balance.
3. If for some reason you are late making that monthly payment, there could be charges such as late fee, service charge and even charge for over limit.
4. Most companies will review your credit history and give you good APR percentage.
5. Always compare with the regular credit cards, because you might not get special rewards or perks which the other cards are offering.
This cannot be emphasized enough, always, always check the fine prints; With all the fees that are mentioned above, if the offences are repeated constantly this can seriously affect you.
If you are someone who always monitor your finances and spend wisely, then you will have problem with no annual fee credit cards. So the added fees that will be charged for offences would not apply to you, therefore you get to save and preserve your credit ratings at the same time.