No Annual Fee Card Warning

In these trying economic times when companies that extend credit to consumers are often struggling to keep their own books in the black, many have resorted to charging annual fees in an effort to help increase the cash available on their bottom lines. Given this situation, it can be hard to find a no annual fee card, but they do exist if you are willing to put the effort in to contacting the credit card companies either by phone or through their websites to inquire about cards that have no fees. Typically, though, if a credit card company is unwilling to waive their annual fee, they may be willing to substitute a fixed interest rate instead -- many often opt for this trade-off if they are unable to find a card that suits them.

However, for those that are seeking credit, paying a yearly fee -- which can range anywhere from $30 to as high as $300 in some cases -- does not sit well with them, especially if the APR (annual percentage rate) is non-negotiable and variable rather than fixed. The idea of paying the credit card company money to use their card and then be charged interest on top of that just seems like a waste of money to most people and they will continue shopping around until they find the no annual fee card they are looking for. Some credit card companies actually recognize this trait among consumers and will not charge a yearly fee based on whether or not the competition is doing so, but if they do not charge a yearly fee, keep a close eye on your APR as the credit card company may make up for the loss of annual fee money by arbitrarily raising your interest rate, especially if you often carry a balance.

Keep in mind when searching for and comparing credit cards, that often the no annual fee card and the cards with the lowest interest rates are often reserved for those with a higher than average credit score. By offering no annual fee and a lower APR credit card companies choose to reward those customers who regularly pay their bills on time. If your credit is less than perfect, you can still find a credit card that does not charge an annual fee, it will just take some time an effort on your part to do so.

Article By Louis, CardKudos[dot]com

Find reviews and useful tips about looking for a no annual fee card as well as related credit card articles such as credit card comparison at Cardkudos.com.