Hidden facts about cards minus annual fee
Competition among the credit card companies is obvious with the umpteen number of credit cards introduced in the fast growing credit card industry. Moreover, cards are offered coupled with special introductory offers like either zero APR or no annual fee. It is so common for users to get attracted to such special offers. Companies have won over the customers and users have gladly accepted the advantages of special offers during the introductory period.
A powerful weapon by name no annual fee is used by credit card companies recently to market their cards successfully and the result is amazing. Earlier, it was compulsory and annoying for the users to pay annual fee for the cards. The companies have realized the obligation and resentment of users for paying the annual pay . Now, the new trend of no annual fee gave a sigh of relief for the users.
Slowly, the credit card companies have replaced annual fee with other market incentives. Unaware of the fact, users think that there will be no payment at all. Please remember to stydy and understand the terms and conditions , offers and incentives, written information on the application, of the company before sign up.
Companies may offer cards with no annual fee for a certain period. After that you will be slapped with fat rates of interest fee. So, be aware of expiry period of offers or incentives provided the credit card companies. At the same time, some companies may come forward with fraudulent offers which will ultimately land you in money problems. Comparatively, it is better to be challenged by the hefty interest rates charged by popular credit card companies.
Every contract consists of terms and conditions which may be advantageous for the users. Suppose you are unable to pay monthly balance fully, your card will be charged to pay service charge on the outstanding. In case you exceed the credit limit of your credit card, an additional fee of $35 will be charged. In addition to the above, if you delay payment, you are liable to pay late fee. A small slip in the above, no annual fee is disadvantageous and a big loss for the card users.
Card holders must have a proper planning for spending and paying the bills on time while handling credit cards. It is the sole responsibility of the users to repay just in time. Any misuse or over spending on the card will lead you into financial crisis and case misery, instead of serving you for better utility. Care may be taken and plan well before using the credit card. Since all mistakes and transactions are well recorded, it may affect your credit card history like denial of home loans,car purchase, insurance or applying for other credit card.
Many a number of banks and financial companies issue no annual credit cards. Users can apply and get these cards. Once you identify a free card, then read and understand the other features and incentives offered by the company.
Credit card like any other modern gadget is neither bad nor good. It can be wisely used during the financial crisis to meet your requirement.
A good deal more related information regarding annual fee credit and APR credit cards
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