Zero fee credit cards are great for people who can't be bothered with all the extra expense of a regular card. But is there really such a thing? Is it really possible to find zero fee credit cards on the market today? And if so, what are they? There's no easy answer to these questions, but there are some facts that we can all work towards getting to know.
Basically, zero fee credit cards are cards that don't charge any interest whatsoever on balance transfers. They also offer no annual fee, and in some cases no ongoing fees to maintain your account. That's quite the statement, isn't it?
The zero fee element of these cards is what attracts many people. After all, how nice would it be to apply for a new card, make a few purchases, and then pay absolutely nothing on it for a year? Zero fee means you won't have to pay any interest charges until after the introductory period has ended. After that, though, expect to pay regular interest rates.
However, there are different kinds of zero fee credit cards out there. Most credit card companies offer one or two of them, but some also offer a whole new line of cards at zero or very low interest rates. You can get these cards from card providers like American Express, Discover, MasterCard, Visa, and Discover. In fact, a lot of people prefer to go with American Express because they know it's such a great brand name, and their cards all have great terms of services. You'll also find American Express cards at many brick and mortar locations.
Card providers sometimes offer other kinds of zero fee cards as incentives to get you to sign up. Before you get too excited, though, take a look at the fine print on those offers. Many of these zero fee cards come with some sort of catch. For example, if you're a good student, the credit card provider may not let you use your credit card to buy things that are really student-related, such as books or lunch.
If you're thinking about applying for a credit card, you should also consider the terms and benefits you'll be able to enjoy once you get the card. Will you get an attractive low interest rate? How many grace periods do you have? Do you have to pay any annual fees?
The best zero fee credit cards are not always the cheapest, though. Keep in mind how much interest you'll be paying on your purchases, and figure out how much you can afford to charge to keep the balance low. It's also important to note how long you plan to charge on the card. Some people don't plan on keeping it long enough to make a significant difference in their debt, but others don't care because they'll be paying less overall and will probably wind up paying off the card sooner than someone who's determined to keep it for several years.
In the end, you have to decide what's best for you and your budget. The best zero fee credit cards are the ones that offer the most benefits, and match your lifestyle. Do you plan on using your card a lot? Or are you someone who only uses it occasionally?
For example, some of the best zero fee credit cards offer up to 5% cash back on all purchases, but if you bring home a magazine or newspaper instead of making a purchase with your card, you won't get much more than cash back. If you shop online a lot, though, you'll get more money back than if you'd just walked into the store, and the cash bonus may even be worth it to you. It all depends on your lifestyle and how much you plan to use the card, and the best zero fee credit cards will help you to manage your debt better.
It's also important to make sure you read all the details for the card you're interested in before signing up for it. The best zero fee credit cards are those that offer great terms, rewards and features. You'll need to know how much you're eligible for, the interest rate, how much cash back you'll be able to get, and any annual fees and other conditions. You'll also want to make sure the card has a long enough payback period so that you don't have to keep spending money you've already paid off. If the card has an annual fee, it can sometimes be a good idea to look into whether or not there are other cards with no annual fee available, saving you both time and money.
The best zero fee credit cards are usually the ones that have all these things in place, and they also come with reward programs that are enticing. If you can find a card that offers cash rebates on all purchases, offers low interest rates, and has no annual fee, you'll definitely want to consider it. By looking around and doing a little bit of research, you should be able to find a card that suits your needs.