What is a no annual fee credit card?

No annual fee means a credit card issuer won’t charge the cardholder a yearly fee for use of the card. No annual fee doesn’t mean a fee-free cardholding experience, however. No-annual-fee cards may still charge late fees, balance transfer fees, foreign transaction fees and more in addition to interest on carried balances.

Should you pay a $0 annual fee on a credit card?

A $0 annual fee won’t eat into your hard-earned rewards value. Better zero-interest offers: No-annual-fee cards are better for settling debt since they tend to offer 0 percent introductory APR on purchases and balance transfers while premium cards typically don’t have these offers.

Do no annual fee credit cards offer rewards?

Rewards rate: Not all no annual fee credit cards carry rewards as some are designed to assist with other financial goals (like paying off high interest debt via a balance transfer). However, for cards that do offer rewards, we considered whether the return rate was competitive for the category.