No Annual Fee Credit Cards

No Annual Fee Credit Cards : Are They For Real?

A lot of credit card companies now offer very attractive packages that are designed to entice customers to sign up for a credit cards. No annual fee credit cards are the most common among them. Like anything else that is free it is usually something hidden behind that very attractive offer. In the surface it looks nice and dandy with no strings attached, but is it for real? You need to make sure you scrutinize all the information on that paper you are going to sign, especially the ones in the fine print, in fact the finer the print the more attention you should put in it. The most common setback for these offers are limitations imposed on the customer, such as shortened card life, higher interest fees or limited purchase power. This is something that customers should be informed of, it is a customer’s right to know these things.
You probably did not even know that the financial institutions offering the no annual fee credit cards can, at any given time, change the terms of service, increase interest rates, cancel your card and anything else in between without prior notice. They can also do a whole lot of other things like increased penalty, cancellation of offer of rebates etc. all on the basis of a late payment on your monthly credit card due or if you by any No Annual Fee Credit Cardschance exceed your credit limit. These acts are labelled as cause for default whereby your card company is given the right to impose excessive penalties or remove your card perks. Read more here.
Of course a downside will always have a good side to it, these card companies will balance the scale with making good on their offer if you do not “default” on your credit card. No annual fee credit cards are offered on almost all the known financial institutions in the industry today. When you make the decision to bite the bullet you might as well make sure that it is from a company that is reliable, credible and has been around for some time. Most of the large credit card companies have good offers that go with the no annual fee credit cards like a percentage refund on their very first purchase, rebates on specific products like gasoline or plane tickets, additional discounts when the customer uses the card in buying the products of a partner establishment or freebies on certain product line. Some even offer extreme discounts if you use the card on partner merchant. That, together with the card being a no annual fee credit card makes for a very attractive offer.

No annual fee credit cards also offer a multitude of other services together with the initial offer. This may vary from small things like a text or email service that is free of charge if you are a card holder. The most common is a point redemption system, this is very popular these days. Some malls will even offer their own no annual fee credit card that they launch under another financial institution. Other offers may include special VIP treatment when you use your card in lounges or bars, special shopping programs that include no interest for certain high end products that you will pay on a fixed monthly installment, and miles earned for every dollar charged to your card.
All in all this can be a win win situation for both the card user and the card provider. The card user just needs to make sure that he understands anything and everything about the card, make sure there are no gray areas that can backfire in the future and protect themselves by reading the card rules twice over before affixing their signature. On the other hand the credit card company needs to make sure that they make good all their offers, be upfront with all the charges and fees, create offers that will encourage the card owner to charge more and in the event of a “default” at least notify the card owner about it and give him/her a chance to rectify the situation.

The answer to the question “Are they for real?” is an absolute yes. Always remember though that nothing is life is free, especially in business. If it’s given to you for free it must be compensated somewhere else. This is a simple marketing strategy that if understood well can be a good thing. If you enter into an agreement with full knowledge of what you are going to get then you cannot lose. So if you are thinking of getting a no annual fee credit card then by all means do so.

Category: No Annual Fee Credit Cards

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