Even though, at least at a first sight, they look like a great option, from many points of view, no-annual-fee credit cards aren’t exactly for everyone. And if deciding if it’s right to apply for one seems like a difficult task for you, then you’re in the right place.
It’s true, paying an annual fee can surely get you a card with a few great perks, but the downside is that not every user will get their money’s worth. However, it can be relatively easy to see if applying for one without an annual fee!
Over the next few minutes, we’re going to discuss three of the main reasons why you should get such a card!
You’re not the biggest spender
So, let’s make things clear: the biggest advantage of a credit card with an annual fee is receiving higher rewards. But this happens only if you spend enough. On the other hand, if you don’t spend that much, you can surely get more value from no-annual-fee credit cards.
You can rely on a general rule when deciding this. To be more specific, in most cases it takes at least $1,000 in credit card spending per month to justify the annual fee. If you’re not even close to this amount, stick to a card with no fees.
You’re at your first credit card
In this situation, when you don’t actually have a credit history, it’s almost impossible to qualify for some of the best credit cards out there. Therefore, you should look at some cards designed for building credit, like secured credit cards or even student credit cards.
Considering that these cards don’t have so many perks, then opting for one without an annual fee is a good idea. In fact, the main point is to improve your credit score by building your credit history. And the main advantage of doing this with a no-annual-fee card is that you can keep it open in the future without paying anything, which can be very good for your credit.
You just can’t afford extra costs
And finally, let’s not forget about what can be considered the most important argument in favor of no-annual-fee credit cards: you want to avoid any unnecessary expenses. It’s simple, right?
If you can’t afford any extra costs, it just doesn’t make sense to pay a fee for a credit card. Go for something without any, as you can always upgrade it!