Some credit cards charge an annual or monthly fee. This is charged to help cover the credit card’s features (such as complimentary insurances or rewards programs). Generally, the more features a credit card has, the higher the annual fee will be. Annual fees are most commonly between $51 and $100, but some cards charge annual fees over $200 (source: Canstar.com.au).

Learn more: How much do credit card fees cost?

There are a number of credit cards on Canstar’s database that have $0 annual fees for at least a limited period of time. While the majority of these cards are low rate or low fee credit cards, there are also some frequent flyer and rewards credit cards that don’t charge an annual fee. It’s important to watch out for other fees, however, as well as the interest rate charged, and make a decision about which, if any, card to use based on the entire cost, and not just the annual fee.

Canstar’s comparison table (at the top of this page) allows you to view different kinds of credit cards and to sort the tables based on the annual fee charged, as well as other factors to help you weigh up your options. Types of $0 annual fee credit cards include:

• $0 annual fee rewards credit cards

Rewards cards might have a higher annual fee on average than low rate cards, but that doesn’t mean there aren’t any with a $0 annual fee. Rewards cards let you turn your eligible everyday spending into rewards points, and not having these rewards eroded by annual fees may be appealing for some people.

• $0 annual fee premium cards

Premium credit cards are generally in the upper echelon of credit cards when it comes to the range of benefits included, such as travel insurance, price protection cover, airport lounge access, concierge services and more. Finding one with a $0 annual fee may help consumers make the most of these features.

• $0 annual fee, 0% balance transfer cards

If you’re looking to transfer your existing credit card debt to a new card using a balance transfer offer, there are some cards that allow you to do so without needing to pay an annual fee. Other fees may apply, however, such as a one-off balance transfer fee, which is often calculated as a percentage of the balance being moved over to the new card.

It depends on how you will use your credit card and your personal circumstances. Before applying for one, ask yourself:

• How much are you likely to spend on your credit card? If you will rarely use your credit card but want one for emergencies, a no annual fee credit card could help keep your ongoing costs down.
• Will you be able to pay off the balance in full before the end of the interest-free period? If you regularly carry forward a balance on your card each month, you might find a credit card with a low interest rate or 0% interest rate might make more sense. Some of these cards also come with no annual fee.
• What features suit your lifestyle and spending habits? For some customers, the card benefits (such as reward or frequent flyer points or complimentary insurances) could offset the annual fee or even exceed it. For others, the cost could be greater than the features on offer.

Consider too whether having a credit card is right for your needs at all, regardless of the fee charged. Even if there isn’t an annual fee, the cost can be significant.

Canstar’s Budgeting and Saving Money Hub has information you may find helpful in managing your personal finances.

To help you assess the value offered by a variety of credit cards on our database, Canstar’s Credit Card Star Ratings assess cards based on their cost, including the annual fee, as well as the features offered in return.

It depends on how you will use the credit card. When deciding whether a card with an annual fee will be worth the cost, you could consider features such as whether it will allow you to earn rewards points and the number of points you can earn per dollar spent, as well as any insurance cover, such as travel insurance that comes with the card. Some cards offer other features, such as airport lounge access or bonus sign up points, which may help offset an annual fee. You may like to consider whether you would actually use these before making a decision to commit.

Aside from the annual fee, there are several other fees that credit card companies can charge. It’s worth noting that, where applicable, these fees are generally added to your card balance along with any purchases you have made on the card. If you don’t pay off the balance in full after each statement period, you would be charged interest on the balance, including the fees you have been charged. Some common credit card fees include:

• Foreign transaction fees: This is a percentage of the Australian dollar value of a transaction made in a currency outside of Australian dollars that’s charged on some cards.
• ATM cash advance fees: A fee charged by some credit card providers when you use your card to withdraw money from an ATM using your credit card. Note a higher interest rate may also apply to these ‘cash advances’ and there may not be an interest-free period on those amounts, meaning you would be charged interest immediately.
• Late payment fees: A fee charged for failing to meet the minimum repayment on your card by the due date. Interest would also be charged on the balance if you don’t pay it off each month.
• Replacement card fees: Some providers might charge you a fee in the event that you lose your card and need a new one.
• Balance transfer fees: This may be charged if you bring across your existing credit card debt to a new credit card. It is usually a percentage of the balance being transferred.
• Additional cardholder fees: a fee charged on some cards if you have another cardholder linked to your account.

It’s important to be aware of the fees you’re paying on your credit cards. The Key Facts Sheet and Target Market Determination documents are designed to outline this and other important aspects of your card.