Best no fee credit cards

Discover secrets of the best no fee credit cards and start saving now.

It is important to understand that there really is NO SUCH THING as a no fee credit card (kinda like how there is "no such thing as a free lunch"). When people refer to these credit cards as being the best no fee credit cards, what they really mean is these cards do not charge an annual fee.

Best no fee credit cards include Capital One Platinum Prestige

However, ALL credit cards usually charge SOME fees. (The exception is the amazing Clear from American Express.)

These can be a very unpleasant shock and include nasties like up to $13 for a replacement statement or $20 for a replacement card.

For example, most cards come with some or all of the following fees:

1. Fees for late payments. Today these fees usually range from $15 - $39 and are calculated on a sliding scale depending on the amount of your outsanding balance. So the more you owe, the higher the fees.

2. Fees for spending over your credit limit. Like late payment fees, these are often on a sliding scale of $15 - $39.

3. Payment processing fees, for example for making telephone payments. (This can be from $5 to $15 - a real trap.)

4. Fees for paying with a check that bounces (returned check fees. (Typically around $30.)

5. Cash advance fees (although sometimes this is done by applying a higher interest rate for cash advances - the painful part is that this gets applied to the TOTAL outsanding balance, and not just the cash advance amount). This is why you should NEVER use your card to get from an ATM.

6. Convenience check fees. These can be as high as $75 for use of the checks, even if they are 0% APR and were sent to you unsolicited by card issuer as a "special offer".

7. Foreign curency transactions. Not every card charges this, but those that do can be very steep - sometimes 3% of the tranaction so this is one to watch for, especially for business travellers.

I think of these fees as the "Magnificent Seven" and do everything I can to avoid them. Please always remember that when people offer you a no fee card what they are almost always really talking about is merely a no ANNUAL fee card.

Thankfully, the media has started to alert consumers to problems with some of the so-called best no fee credit cards and is running more and more stories on credit card fees.

There are several other factors to also consider when doing credit cards comparisons in order to find the best no fee credit cards. The fine art of credit cards comparisons is easiest to do when you can stack up several offers side by side and then compare and contrast all of the details in the fine print.

Not a credit card no fees but still a great deal

Obviously the card's interest rate is very important. As a general rule the lowest APR will always be the best. In fact, if the APR is low enough, paying an annual fee may actually SAVE you money. A great example of this is with a low fixed rate Pulaski Bank Credit Card. Is has a $35 annual fee, BUT the there is a LOW FIXED APR of just 6.5%.

Also, a lot depends on what type of card user you are as an individual. A surprising amount of cardholders pay their balance in full each month. (See fascinating figures on the Average FICO Score and Statistics On Credit Cards .) These folk do not need to worry about the APR as they never pay any interest. For people like this, features like a long grace period are more important as this effectively gives them a nice long interest free loan.

As well as APR, look at grace periods and rewards that are actually useful to you. For example, go back to paying last year's gas prices and apply for gas card and you will be delighted with the monthly savings.

In summary, there are actually 10 things to consider - the "Magnificent Seven" typical fees listed above, as well as interest rate, grace period and rewards. After factoring in all of these, it seems that the best no fee credit cards will vary, depending on YOU:

1. Do you pay in full each month, or carry a balance?

2. What type of rewards will be most useful to you? Personally, I would take gas rebates over Starbucks points any day!

Best credit card no fees

Credit card no fees - only Clear from American Express

According to indepenent analysts like Consumer Reports and Card Ratings, the best no fee cards are:

1. Capital One Platinum Prestige: This is a great card but is intended only for consmers with excellent credit.

2. Clear from American Express: An amazing deal with NO FEES OF ANY KIND!

3. Simmons First Visa Platinum: This is also only for those with excellent credit as it is an outstanding bargain, offering a fixed APR of 8.95% on purchases, and a fixed cash advance APR of 12.95%

The main reason these are the best credit credit card no fees is because of their low interest rates, but there are other advantages such as generous grace periods and other very civilized terms.

If you don't qualify for one of these "best of the best" super-cards, what I do heartily recommend is getting a 0% introductory APR, especially if the card issuer offers a no fee balance transfer deal, and choosing a practical reward like gas rebates instead of something that only encourages you to spend more money, like Starbucks or Borders points.

Return from Best No Fee Credit Cards to Top 10 Credit Card Issuers

Return from Best No Fee Credit Cards to Credit Card Comparisons home