Credit cards with accompanying rewards programs often come with annual fees as well as interest-free days. This type of cards is best suited for people who use their cards frequently. However, though this card provides many advantages to cardholders, it will come with high interest rates.

Advantages

- Extremely low interest rates
- Low credit limit
- interest-free days
- Introductory promo deals

Disadvantages

- High interest rates for cash advances
- Will cost more once the introductory period is over

For this reason, this card is not recommended for people who cannot pay more than the minimum monthly balance, mostly those that do not have a stable source of income. This is why no annual fee credit cards are the natural alternative for most people. This card often comes with interest-free days, usually around 50 days on purchases.

In addition to this, no annual fees cards come with low interest rates. Minimum monthly payments are also lower as compared to personal loans but this will come at a high interest rate. The low credit limit on no annual fees cards also has its advantage as it keep the card holder’s expenditures in check.

On the other hand, there are many people who are not aware that cash advances incurs higher interest rates of approximately 15% once you withdraw money through an ATM using your card. Note that transferring money through phone or internet from your card to your bank account is also considered as cash advance. Of course, some banks offer special introductory deals to prospective customers. These offers include low balance transfer rates for a specified duration of time, usually for the first six months or no annual fees for the first year.

While these special offers, particularly introductory low interest, may seem appealing, they are somewhat designed to dazzle and then trap uninformed clients. It will be quite a shock to discover that the promo has ended and the card reverts to the full rate. This is why it is crucial to read the fine print before you sign any documents.

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Initially, when the credit card concept had just been introduced, for quite some time later there used to be an annual or yearly fee charged to the customer. There was lot of resentment and this fee slowly got eliminated. Nowadays, most credit cards come with a no annual fee offer and the marketing companies are utilizing this as a marketing gimmick. Most banks and financial institutions do not charge an annual fee and hence, the customer can look for additional features before deciding on a credit card.

This “no annual fee” does not strictly mean that there are no fees at all. It is the responsibility of the customer to read the entire document before signing for a new card. Service charge is the fee levied if the customer is unable to pay the entire balance every month. An additional fee, in the range of $35, is charged in case the customer goes over the individual credit card limit. There is a late fee charged in case the payment is delayed.

There are many credit card companies that offer no interest for an introductory phase, which enables the customer to clear his balances without any interest- accrues. There are also other attractive offers in terms of cash back and air miles rewards. Depending on the customer’s current financial outlook, the credit card companies offer cards that suit the customer’s requirements. Some cards offer best low interest as well as 0% interest rate for the first year for both, balance transfers and new purchases. It is generally an option offered to people with the best credit ratings.

People are generally fond of affordable and inexpensive credit cards and so credit card companies are always coming up with new low interest rate credit cards, with no annual fee, that corresponds to the customer’s needs.

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