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Beginner's Guide to No Annual Fee Credit Cards

Oct 31, 2007
The bulk of lending institutions now offer no annual fee credit cards to draw in new consumers. Picking a card with no annual fee can save you a great deal of money. Don't jump at the first offer you receive though. Picking the right card can be an arduous task and understanding what kind of contract you are commiting to is important.

Tips for Picking the Right No Annual Fee Credit Card
Everything you need to know about a particular credit card and its policies can be found either on their website or in the pamphlet included with your card. As a responsible card-holder, you need to understand the terms you consent to.

Read the fine print every time. Though the information regarding your card's account terms may sound like boring copy or legal talk, it is important to read through it. The legal talk usually includes the crucial elements about your credit agreement, including additional fees you may otherwise not be aware of.

Credit card companies also update these policies now and then and send the new copy with your bill. Take the time to read about the changes in the agreement to avoid incurring additional fees.

Understand that over time the interest rate of your no annual fee credit card may increase by 10% or more. Introductory rates look good and work well to draw new in clients. Understand that this most likely means there will be a significant increase in the interest rate in the future.

Make sure you comprehend the policy on late fees. Some institutions charge as much as $39 for a late fee, which makes up for them not charging an annual fee. Many cards also have a policy that the low interest rate remains the same as long as payments are made on time. Late payments may result in an instant increase in your interest rate.
Learn the institution's policy on over-the-limit fees; they can get out of control if left unrestricted. A late fee could be all it takes to put you over your credit limit and without making a purchase you could owe an additional $80 or more to bring your credit card current.

Take care to see if the institution offers any type of benefit like vacation miles, merchandise perks, extended warranties on goods, balance transfers, gas rewards or a cash back reward system for using the card.

Great No Annual Fee Cards
All cards have different agreements. Carefully look over all of your options to find which one would work best for your financial situation and spending style. The right no annual fee credit card can help save money.

Chase Bank offers a Platinum Business Card that has an introductory APR of 0% with no annual fee and the rate is only 12.24%.

The Discover Business Card offers a 13.99% APR, no annual fee and cash back rewards.

Citi Bank offers the CitiBusiness Card that has a low rate of 10.74%, no annual fee, merchandise discounts and a 0% introductory offer.

The American Express Simply Cash Business Card offers no annual fee, unlimited cash back for purchases made with the card, a 0% introductory rate and a very low 8.25% APR.
About the Author
Nick Bair is a consumer advocate and the webmaster of http://www.Credit-Rate.com, a credit card comparison site. Nick wishes to alert the buying public about their choices when it comes to using credit wisely.
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