Explore the benefits of no annual fee rewards card
When you glance at newspapers ads or magazines or emails or postal bulk mails, you may notice that most of the credit companies are generously offering credit cards without annual fee. Companies vying with each other have come forward for luring the card holders. This has become a new trend in the credit card industry. Good news to all the users!!
Is it fetching to hold such credit card?
It is surprising to note that card companies are ready to forego revenue generated from annual fee and other finance charges. It is good to understand why companies opt to forego bulk revenue generated fee structure. Users shall not forget that credit card companies are not solely depending upon the annual fee but can generate revenue from the users by charging interest on the balance credit; finance charge on exceeding credit limit and not paying monthly installment in time; surcharge on cash withdrawal etc. These are only just few samples of revenue generation on the credit cards. Ultimately, users are the main source of revenue generation for modern advantage of using credit cards.
Interest rate charged on free credit cards without annual fee is much higher than that of cards charged with annual fee. This how credit card companies balance loss on annual fee by charging higher interest rate and other finance fee on the cards.
Above all, if you are one of the customer who pays off all the balance in time, no interest will be charged on the card. Moreover, you do not have to look for waive off of any fee on the card. This is one of the benefits users can enjoy by clearing entire outstanding just in time and its befitting for the card holders to hold such credit cards.
Extra guidance about Fee Credit or low apr credit card
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