No Annual Fee Credit Cards
Credit cards are a necessity for modern life. However, having said that, the convenience of credit cards comes at a price. In addition to the financing charges and the various fees, there is also the annual fee that most credit card companies charge just for giving you a credit card. This means that even if you don't end up using your credit card much, you still end up paying for it. In such a scenario, no annual fee credit cards seem like manna from heaven. Not surprisingly, many people get so excited when they see a "No annual fee" on a credit card that they sign up for it without reading the small print. The first thing to keep in mind when you get the opportunity to sign up for a no annual fee credit card is that there is no such thing as a free lunch. Go through the terms and conditions attached to the credit card carefully and make sure that the credit card company is not trying to make up for lost revenues in some other way. For instance, many no annual fee credit cards come with a slightly higher interest rate. Some no annual fee credit cards compensate by not offering a rewards programs. Then there are those no annual fee credit cards that also have a low interest rate, but - and this is where the catch lies - they have a really steep late fee. Thus, as you can see, just because a credit card has no annual fee doesn't necessarily mean that it is cheaper. This is not to say that therefore they should be avoided. No annual fee credit cards make a lot of sense under some circumstances. For instance, if you are very regular with your credit card payments, your primary cost of maintaining your credit card is the annual fee. A no annual fee credit card would therefore be ideal for you.