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Sunday, August 10, 2008

Free Credit Cards : No Annual Fee Credit Cards - Are They Right for You

Free Credit Cards

Typical consumers are bombarded these days with seemingly thousands of advertisements, many arriving in the form of unsolicited email and bulk postal mail, for credit cards. From staggeringly low introductory interest rates and no annual fee credit cards to all manner of possible rewards and incentives, each advertisement has something to attract potential consumers. No one consumer needs more than a handful of credit cards, so how is one to cut through all of the advertising jargon and determine for his or herself which card will be the best one for them?

There is no simple cut and dried algorithm for selecting a few good prospects out of the myriad of offers for travel rewards cards, no annual fee credit cards, low interest credit cards, and the like. The best way to proceed is to carefully examine your own spending habits and taking that information, along with a little bit of calculation, to determine which card offer will work best for you.

It is important to remember that credit card companies issue credit cards with the sole purpose of making money through finance charges and/or annual fees. Typically, no annual fee credit cards will have higher interest rates than cards that charge an annual fee. Whether a no annual fee credit card or a low interest rate credit card is better for you depends on how you typically use your credit cards. If you always pay off your balances in full, or carry very little balance, typically no annual free credit cards will be perfect for you.

The reason is that no annual fee credit cards tend to offset the savings from having no annual fee by charging higher interest rates than other cards. However, if you always keep your balance low, then your finance charges will be low as well, regardless of interest rate. On the other hand, if you often carry large balances and do not pay your balance in full, interest rate becomes much more of a factor. If that is the case, no annual fee credit cards may not be the best choice. The best card in that situation would be the card with the lowest interest rate. The savings from paying lower finance charges will offset the annual fee.

Morgan Hamilton offers expert advice and great tips regarding all aspects concerning No Fee Credit Cards, including assistance with the Chase MasterCard Rewards Get the information you are seeking now by visiting

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