No Annual Fee Credit Cards

How does a credit card with no annual fee work?

A no annual fee credit card allows you to shop and spend, without having to pay a yearly fee for the account. This can save you from $25 to as much as $1,450 for credit cards with an annual fee.

Just like other cards, interest and other charges may apply. But if you pay off the balance in full each month – and can get interest-free days on purchases – it’s the closest you can get to free credit.

Finder's database contains every credit card we could find on the market, including some that offer balance transfers, rewards and other benefits. Right now, there are 34 credit cards on the market that charge no annual fee, ever.

Finder's best no annual fee credit card offers for January 2024

Updated 2 January 2024 by Finder's senior credit card writer, Amy Bradney-George.

Millions of Australians have made New Year's resolutions around money, with Finder research showing the top goals are saving more money (54%), spending less money (34%) and reducing expenses (21%). If you have a credit card or want one, considering a no annual fee option is one way to save on expenses. With some cards charging annual fees of $300 or more, this could save you hundreds of dollars on account costs. And sometimes you'll get other perks such as rewards or interest-free offers.

Here's our pick of cards available through Finder:

• $0 annual fee rewards card:
  The Coles No Annual Fee Mastercard has an ongoing $0 annual fee and offers 20,000 bonus Flybuys points (worth $100 Flybuys Dollars) when you apply by 29 February 2024. It also offers 0% interest on purchases for the first 6 months. One of the few cards on the market offering rewards and no annual fee.
• No annual fee and 0% balance transfer exclusive offer:
  The Kogan Money Credit Card has an ongoing $0 annual fee and offers 0% p.a. interest on balance transfers for 18 months with a 1% balance transfer fee. Unlike some cards, you can transfer debt from personal loans and lines of credit from other financial institutions.
• No annual fee and frequent flyer points:
  The Qantas American Express Discovery Credit Card offers no annual fee for life and earns between 0.5 and 1.75 Qantas Points per $1 on eligible spending. It's one of the few credit cards on the market that gives you a way to earn frequent flyer points without paying an annual fee.

Keep in mind: There's no one best credit card for everyone, so check details that matter to you.

• Methodology: How we chose these $0 annual fee cards

  To determine Finder's pick of $0 annual fee cards, we examine over 250 cards in our database. We narrow it down to cards available through Finder that offer either a waived annual fee or an ongoing $0 annual fee. The other key factors we consider are:

  • The annual fee after the first year (the lower the ongoing annual fee, the higher the ranking)
  • Bonus point offers
  • 0% balance transfer offers
  • 0% purchase rate offers
  • The ongoing interest rate for purchases

  In addition to the key factors, we may consider any additional features or introductory offers that are relevant and have the potential to offer further value.
  Keep in mind: Our top picks may not always be best for you. Based on your situation, you may find certain features to be more or less important, so compare your options before you apply.

Pros and cons of $0 annual fee credit cards

A $0 annual fee credit card saves you money up front, but make sure you get the most from it. Always pay it off every month in full - once you're paying interest, the card isn't free. And look for other features as well - if you can earn frequent flyer points, you can save real money on travel just by using your card for everyday purchases.

Angus Kidman
Finder’s editor-at-large

Types of no annual fee credit cards

Some no annual fee credit cards offer the basics, while others have more features and benefits. This means you can compare credit cards that combine a $0 annual fee with other features, including introductory 0% interest rate offers, frequent flyer points, reward points and complimentary extras. Here are some examples.

How to find the right credit card with no annual fee

Ask yourself these questions to help compare your options:

• How often do you use your credit card? Finder research shows 41% of Australians got their most recent credit card for emergencies. If you rarely use a credit card but want one for unplanned expenses or emergencies, getting one with no annual fee helps you save on costs when you're not using it.
• Do you carry a balance? Some no annual fee credit cards have high interest rates that are better suited to cardholders who pay their balance in full each statement period. If you regularly carry a balance, you might want to consider a low interest credit card instead.
• Do you have existing debt? You could consider a balance transfer credit card to save money on interest charges for an introductory period. Or, focus on paying off your current debts before you get a new credit card.
• Will you use the credit card after a $0 annual fee promotion ends? If it doesn't have a competitive interest rate or enough extra features to outweigh the ongoing cost, you might want to cancel the card before the annual fee is charged.
• What other credit card fees and charges will you pay? As well as interest rates, make sure you check for other credit card fees that could apply, including foreign transaction fees, late payment fees and cash advance charges.

Frequently asked questions

• When will the annual fee be charged if a credit card offers no annual fee in the first year?

  If you have a card with a promotional $0 annual fee offer, the annual fee will usually be charged 12 months after you were approved for the credit card.

• Can I cancel a credit card before having to pay the annual fee?

  If you get a credit card that offers no annual fee in the first year, you can cancel it before the annual fee is charged in the second year. Just check your account details online or contact your credit card provider to find out exactly when the annual fee would be charged – and make sure you have paid off the balance – so you can cancel the account before that date.

• Is there any way to extend my credit card's annual fee waiver?

  This depends on the credit card provider. For example, some providers may waive your credit card annual fee when you also take out a home loan package with them. Others may waive or refund your annual fee if you meet specific conditions, such as spending a set amount each year or being a student. You can check the terms and conditions or ask the credit card company to see if an ongoing waiver is possible, or compare cards with ongoing $0 annual fees instead.

• Is a no annual fee credit card a cheap credit card?

  If you always pay off your balance in full and can make use of interest-free days on purchases, then a no annual fee card can be very affordable. But if you carry a balance that attracts a high interest rate, the interest charges could make your credit card an expensive option. In this case, you might want to compare credit cards and look at the potential savings you'd get from a card with a low interest rate (even if it has an annual fee).There is no such thing as a "free credit card" because there is always the potential cost of interest if you carry a balance. There are also other credit card fees that may apply for certain transactions (such as cash advances or purchases made in a foreign currency). But in most cases, if you have a $0 annual fee card and pay off your account balance in full by the due date on each statement, you won't be charged interest and can use the card at no cost.

• Can I get a credit card with no annual fee for life and an ongoing low interest rate?

  Yes, there are a few no annual fee, low rate credit cards on the market. You can use the filters on Finder's comparison table to narrow down your search based on rates, fees and other features you want. But keep in mind that $0 annual fees and low rates are generally offered on separate cards – except when one of the features is promotional. For example, a $0 annual fee card may offer an introductory low or 0% interest rate before reverting to a higher standard rate, while a low rate credit card could offer a waived annual fee in the first year.

• I want a no annual fee credit card for travel. What other features should I consider?

  To keep your travel costs down, you may want to consider a credit card with no overseas transaction fees or a card that offers complimentary travel insurance.

• Can I get a no annual fee credit card if I have lots of debt or bad credit?

  Having a bad credit rating will limit your chances of being approved and getting a credit card, regardless of whether there's an annual fee. You can use our bad credit rating credit card guide to see what credit alternatives are available for applicants with a negative credit history.

Why you can trust Finder's credit card experts

We're free

Our comparison tables are completely free to use. We link you directly to the lender's secure application page. Better still, we regularly have exclusive offers that you won't find on any other site.

We're experts

We've researched and rated hundreds of cards as part of our Finder Awards. We've published 200+ guides and our in-house experts regularly appear on Sunrise, 7News and SBS News.

We're independent

Unlike other comparison sites, we're not owned by a bank or lender. That means our opinions are our own and you can compare nearly every credit card in Australia on Finder.

We're here to help

Since 2012, we've helped almost 6 million people find a credit card by comprehensively comparing offers. We'll never ask for your personal information. We're here to help you make a decision.

2023 Finder Award winner and finalists

Find out which brand took first place at the 2023 Finder Awards for no annual fee credit cards.

The American Express Low Rate Credit Card won the 2023 Finder Award for Best No Annual Fee Credit Card. It scored highly for its $0 annual fee, low interest rate for purchases and interest-free days. It also offers $0 additional cardholder fees and won the 2022 and 2021 Finder Awards for this category.

The Heritage Bank Gold Low Rate Credit Card scored highly for its $0 annual fee and low 11.8% interest rate. Unlike the other finalists in this category, it does not offer interest-free days.

The Hume Value Visa offers a $0 annual fee, a low 11.95% interest rate for purchases and up to 55 days interest-free, which saw it score well across the criteria considered for this category.

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Every year the Finder Credit Card Awards honor Australia's best credit cards, with expert analysis of rates, fees and offers based on 12 months' worth of data. Offers change regularly, so these cards may not currently have the most competitive deals but you can use them as a benchmark.