What is a No Fee Credit Card?

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  • Written By: B. Miller
  • Edited By: Andrew Jones
  • Last Modified Date: 31 January 2020
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A no fee credit card is a revolving credit card that does not charge a yearly fee for the privilege of having the card. It may also refer to a credit card that does not charge a fee for balance transfers from other credit cards. It is virtually impossible to find a true no fee credit card, since all credit cards will eventually charge interest on purchases, even if they do not charge a yearly fee for holding the credit card.

A card that does not charge a yearly fee, or balance transfer fees, is a good choice for people who may not charge a large amount on the card throughout the year. This is because credit cards that do charge a yearly fee tend to offer better benefits to members, such as better rewards programs or cash back options. It will be important to read the fine print and consider the yearly amount that one plans to charge in comparison to the fee and any benefits offered by the card. In general, unless one charges thousands of dollars per year on a credit card, and will earn a great deal of benefits, it is best to apply for a no fee credit card.


It is always important to read the fine print when applying for a credit card. Some companies will advertise a no fee credit card, but will really only waive the fees for the first year, after which time a yearly fee will be charged. Other companies will charge zero percent interest for the first six months or one year, after which time the interest rate on the card will jump up a sizable amount, sometimes to 20 percent or more. Usually credit card fees will only be charged once per year, with the exception of monthly interest of course, and are usually a fixed rate that does not vary based on the amount on the card.

Keep in mind that even a no fee credit card may on occasion charge fees for special circumstances. Cash withdrawals, for example, will sometimes carry a fee, and may also feature a higher interest rate than standard credit purchases. International transactions will often charge an additional percentage fee on top of the purchase price. Most credit card fees can be avoided by careful management of the credit card; for instance, paying the balance in full every month will avoid any interest charges throughout the year.



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