When the direct sales agent comes to offer you the credit card, without any transaction fee you are always happy to put that card in your wallet. But it may also happen that at the end of the year after the card has completed one year and when you receive the bill for annual fees on the credit card you may rue the decision of having the credit card. It had been observed by the credit card industry that most of the credit cards underwent mortality within a year of being issued, as the users were not ready to pay the annual fee of the credit card.
The way out was No annual fee credit card. The advent of no annual fee credit card has taken care of the rate of surrender that the card users were experiencing. As there is no annual fee to be paid, the cancellation rate on the cards has come down to a great extent. In technical terms no annual fee credit cards are those cards where the card issuing banks do not make any charge for providing servicing on the card on an annual basis.
No annual fee credit cards have also come into vogue after the advent of the era of information technology. No annual fee credit cards can be applied on line and there is always a chance of instant approval if one has a good credit rating. The another advantage of no annual fee credit card also lies in the fact that you may also not be charged any transfer fee if any amount that is outstanding is transferred to this card. One of the most redeeming features of no annual fee card is that they could also be one of the best frequent flier cards, the best credit cards that provide maximum cash back, the best gas credit cards, as also the hotel credit cards.
Does it then mean that any body can have the no annual fee credit card? Not at all. The no annual fee credit cards are made available only to those who have a good credit history i.e. those customers who pay their bills on time, and therefore it is a reward for good credit history. No annual fee credit cards are also given to the students as it is considered their baptism into the world of credit cards.
As the no annual fee credit cards can be applied for online, it is always advisable to first check your credit report. After getting the credit score, it should be matched against the type of credit cards that are on offer online. If you have not found your credit history, and have put in application for no annual fee credit card online, there is always a chance that the card may be denied. So, you are advised to get details of your credit history. When you are applying for the no annual fee credit cards, also check in if there is some kind of a catch involved in the form of higher set up fee, steep cash advance fee etc., the idea being to be sure that the annual fee would be charged on some other pretext.
